Rex in voluntary administration, ending all 737 services

[henrus]

1200 still seems like a very large number with just 34 in service aircraft (plus 23 parked).

Going back 20 years to the 2004/5 annual report they had 594 employees and 24 Saabs plus a couple of Metro 23's.

 

[dajop]

1200 still seems like a very large number with just 34 in service aircraft (plus 23 parked).

Does the 1200 include National Jet, Pel-Air, the pilot academy, etc, as well as the RPT Saab operations?

 

[FruitySnack]

So the due date for offers was on August 14. Wonder if we will start to hear about any of the interested parties.

 

[HS-TQE]

'Sharpy' has formally reported his former boss/bestie LKH to the AFP.

Under the title "Police embroiled in REX Airlines boardroom dispute" (Australian/News Corp), JS has accused his former boss LKH of offering the recording of the final (pre-Administration) REX Airlines boardroom meeting to journalists.

Looks like the Circus won't be dying down for some time yet.

 

[Jacques Vert]

'Sharpy' has formally reported his former boss/bestie LKH to the AFP.

Under the title "Police embroiled in REX Airlines boardroom dispute" (Australian/News Corp), JS has accused his former boss LKH of offering the recording of the final (pre-Administration) REX Airlines boardroom meeting to journalists.

Looks like the Circus won't be dying down for some time yet.

Looking forward to the next episode.

 

[Ansett Nostalgic]

Goes to show that Sharp was the wise head in the room as he took over as chairman with the support of PAG

 

[Saab34]

Goes to show that Sharp was the wise head in the room as he took over as chairman with the support of PAG

But had oversight for xx years and let it sink to this?

 

[henrus]

But had oversight for xx years and let it sink to this?

He's been at Rex for 19 years.

 

[Saab34]

Yes, but was out of his depth when it came to 737s.

 

[henrus]

Yes, but was out of his depth when it came to 737s.

I'd say Sharp's career has been wild even in the early days of politics
Sharp became Minster for Transport in 1996 during that time he;
- He re-opened the East/West runway in first 10 days of office against the noise complaints at the time.
- Privatised major capital city airports (except Sydney).
- Privatised the Australian National Rail, created ARTC to overcome state regimes.
- Started a complete rewrite of CASA standards.

Then just one and a half years later stepped down from the role due to travel allowance affairs, stating he "depended on this memory to prepare claims" after audits found the claims weren't accurate.

Even back in 2007, two years after he joined Rex they were complaining about a lack of pilots (something that has continued for the last 17 years).

John Sharp (Australian politician) - Wikipedia

en.wikipedia.org

 

[Saab34]

Still beyond me how on earth they pressed ahead with the MEL-PER announcement. Madness. Was in the thick of the collapse talks.

 

[henrus]

Still beyond me how on earth they pressed ahead with the MEL-PER announcement. Madness. Was in the thick of the collapse talks.

My guess is someone had already sent the invites out to media and printed the marketing material so they had to push ahead to save face.

 

[Mattg]

My guess is someone had already sent the invites out to media and printed the marketing material so they had to push ahead to save face.

Rex had marketing material?

 

[Saab34]

I think the management expertise level at Rex never really went above a Saab operation. However they seemed to run with this mentality that they offered this product that was somewhat better than everyone else, and they should just watch out, Rex is in town with its 737s.

I don’t know what failure is worse. Tiger, Bonza or Rex.

 

[dajop]

I don’t know what failure is worse. Tiger, Bonza or Rex.

Bonza was always high risk, regardless of how it was managed. I am sure the investors knew that.

Rex, on the other hand, could have greater potential but woefully mismanaged and completely underinvested in marketing and loyalty space.

I just don't understand how people with supposed knowledge of the aviation industry think you can enter the Australian domestic market with no loyalty offering. You should have that the bones of that in place well before you lease your first plane, and ready to go when you do. Far more important than having planes to fly . Unlike many markets, even our LCC has a loyalty offering that passengers can buy into.

 

[henrus]

Rex had marketing material?

Look you laugh but sadly they did. That being said it was weird messages (see below from a 2021 Gold Coast Airport billboard) and also in the wrong places, this one was as you drove into the airport - something I always find a bit odd seeing airline advertisements driving in to an airport because chances are if I'm going to an airport then I've already booked a ticket!

 

[Harrison_133]

The Australian is reporting that Oaktree Capital Management, Cerberus Capital, BGH Capital and Bain Capital have all been in the Rex data room assessing an acquisition.

It also reports that the parties shaping up as the most likely parties are funds from Asia or one or two strategic buyers including Alliance Aviation.

Source: https://www.theaustralian.com.au/bu...ws-story/5fa5222a282b042f523865dff28684bf?amp

 

[henrus]

The Australian is reporting that Oaktree Capital Management, Cerberus Capital, BGH Capital and Bain Capital have all been in the Rex data room assessing an acquisition.

One thing is for sure... The Australian seems to be getting these leaks fast.

 

[Saab34]

Alliance would make sense and would provide some stability moving forward without the worry of what any PE backed outfit will do next. Probably the best owner for any long term outlook.

Probably dump the Rex branding and just run with Alliance.

 

[dajop]

Alliance would make sense and would provide some stability moving forward without the worry of what any PE backed outfit will do next. Probably the best owner for any long term outlook.

Probably dump the Rex branding and just run with Alliance.

I wonder if Alliance is interested in the whole outfit, or just the charter operations (NationalJet Express)? There could be value in the administrators selling different parts of the company to different bidders.