Rex in voluntary administration, ending all 737 services

[33kft]

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.

Can we get him back in?

- Privatised major capital city airports (except Sydney).

Okay, nevermind

 

[HS-TQE]

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.

National Jet Express is bungled with LKH's (and his Brother in Law) personal stakes in NJE on top of REX's own stake in that subsidiary.

 

[Saab34]

Alliance didn’t seem interested back in the day with NJE when it was put up, don’t see how now is any different.

They already have E190s, not sure what they would get from it aside picking up more contracts. The biggest issue is LKH and his 50%.

 

[dajop]

Alliance didn’t seem interested back in the day with NJE when it was put up, don’t see how now is any different.

Distressed assets = cheaper? LKH remains the problem though,

Contracts might what is valuable that can be eventually transitioned to Alliance core operations.

 

[Mwenenzi]

And it goes on
abc.net.au Rex administrators seek to extend sales process for troubled airline

In short:
Administrators for Rex are seeking an extension to find a buyer for the troubled airline after it collapsed in July.
Several expressions of interest have been received for the airline, but administrators say they need more time to work through the applications.

What's next?
The Federal Court will hear the matter on Friday, while the sales process is expected to be finalised in September.

 

[Jacques Vert]

Well as long as John Sharp has nothing to do with them in the future, they've got a chance.

 

[RooFlyer]

I read in the Oz that the federal transport minister is protecting Rex’s Sydney Airport regional service slots until early 2026. And elsewhere that Sydney airport slots will be monitored and regulated to a greater extent for Qantas and Virgin’s utilisation especially.

Very pleasing about the Rex protection as the barriers to entry, and competition without Sydney are very very high

 

[eastwest101]

I read in the Oz that the federal transport minister is protecting Rex’s Sydney Airport regional service slots until early 2026. And elsewhere that Sydney airport slots will be monitored and regulated to a greater extent for Qantas and Virgin’s utilisation especially.

Very pleasing about the Rex protection as the barriers to entry, and competition without Sydney are very very high

View attachment 404919

Yeah thats a weird one because Rex are currently using the regional slots at SYD with their current Saab 340 operation so they are using it and cannot lose it. Maybe its more of a pro-active thing in suspending the use it or lose it clause in the expectation that the Administrators might fail to find a buyer or new owner of the Saab 340 regional operation?

I would expect that the non-regional slots - which were being used by the Rex 737 jet operations will return to the "system", its the specific NSW regional slots in SYD that are probably exempt from the use it or lose it provisions. Probably makes the administrators job easier if it ends up with no bidder for the entire Rex Saab regional operation, and some bits get sold off to different operators in the future. E.g. if Link and or Pelican pick up the NSW network and say Sharp pick up the SA and Tas bits, and someone else picks up QLD contracts?

You would expect that any potential bidders for the Rex regional operations (and have seen quite a few Private Equity bidders in the data room as well as possibly Alliance?) would be specifying/negotiating that the Rex regional slots get reassigned to regional destinations and the new operator possibly on a destination basis? I.e. Rex's current regional operations might have Dubbo at say 2 slots per day, Broken Hill 1 slot per day, Mildura 2 slots per day, Merimbula 1 slot per day, Albury 2 slots per day, Coffs Harbour 2 slots per day etc etc

Although now it wouldn't be beyond belief that Private Equity could consider the option of buy/acquire the slots, fire all the staff, scrap the Saabs and then just squat on the slots until the taxpayer has to buy them out?

But seriously - you can see in this case that the minister is simply trying to keep the existing regional slots assigned as regional slots no matter what happens in the future for Rex which is fair enough.

 

[RooFlyer]

But seriously - you can see in this case that the minister is simply trying to keep the existing regional slots assigned as regional slots no matter what happens in the future for Rex which is fair enough.

Yes, just in case the administrator needed for whatever reason to shut some regional routes down, the slots would be preserved for whatever comes out in the future rather than being lost and gobbled up by the
majors.

 

[Mattg]

One of the ex-Rex 737s has flown for the first time since the administration was announced. VH-8JS just flew from SYD to ASP.

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[Saab34]

It really stinks like they can’t find anyone who will take the whole group as one, NJE/Pelair have value, especially Pelair, the lemon appears to be Rex and it’s Saab ops.

I struggle to see how anyone could outlay anything significant when looking at the group financials. Surely this is heading for liquidation.

Liquidation is an issue for the government. Because it’s clear the Saab operation would be then somewhat toast, Labor have been very public on the Saab operation and its importance, however it’s the ugly part of the whole operation. Perhaps they need to start looking into, what can current operators do, to step in and takeover from Rex. Really is heading down a bad road if the Government want to buy and deal with the Rex operation. Work with existing operators to scale up and take on the routes, after 6 months Rex will just be a forgotten memory.

 

[servicerequired]

I think the end result with the SAAB RPT operations - we're going to see a restructured and streamlined regional network ... geographically streamlined ... what is the 'real' qty of SAAB that have a life for the next 5-10 years ?? 25-30 aircraft ??

... and if that doesn't eventuate, QF can hang on to some of their Dash 8 300s and pick up the slack out of ADL - and add PKE to their network.

 

[Saab34]

Is some routes they don’t even need to bother with. Cairns to Townsville is a rather pointless Rex route.

A whole bunch of those Cairns to Gulf routes can be serviced with a Caravan operator, ie Hinterland or Skytrans, Hinterland is getting new Cessna turboprops soon also.

The Perth routes can be picked up by a vast range of competitors all with much better equipment.

They are really just a NSW regional airline. Is a few options to offload those also.

 

[HS-TQE]

All of the remaining (ex-VA) x5 737s at REX has now had their registered operator changed to ferry company "De Lore and Associates".

The guessing game of which of the x3 737s from the REX fleet of x9 737s resumes again (although safe to assume the 21-year old 737s are out).

 

[p--and--t]

WA local governments owed almost $1m after airline collapse

West Australian local governments want to strengthen payment arrangements on regulated airline routes, after being left hundreds of thousands of dollars out of pocket when Regional Express (REX) went into voluntary administration.

www.abc.net.au

 

[Harrison_133]

One of the ex-Rex 737s has flown for the first time since the administration was announced. VH-8JS just flew from SYD to ASP.

Another one gone.

VH-RYU left Sydney this morning bound for Nadi.

 

[HS-TQE]

A 21 year old ex-DJ machine. Would guess its final destination is either freighter conversion or the boneyard for its final resting place.

 

[MooTime]

A 21 year old ex-DJ machine. Would guess its final destination is either freighter conversion or the boneyard for its final resting place.

Out of interest, what makes the jet more for freight, but not pax at near end of life, 20+ years etc.

Not worth replacing all upholstery? As mechanically it must be tip top still.

 

[oz_mark]

Out of interest, what makes the jet more for freight, but not pax at near end of life, 20+ years etc.

Not worth replacing all upholstery? As mechanically it must be tip top still.

Cargo doesn't complain about not having the latest mod-cons.

But a large part comes down to freight aircraft having lower utilisation (affects maintenance etc, makes fuel efficiency less of a concern), the older aircraft being cheaper to get hold of (and a shorter queue to join)

 

[HS-TQE]

Another one gone.

VH-RYU left Sydney this morning bound for Nadi.

Now landed at the MZJ boneyard.

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