Rex in voluntary administration, ending all 737 services

[antycbr]

VA were at least rumoured to grab more ex Silk/SQ 738s, so I'd suspect the ex-Silk 8SAs at REX would only need to be towed over and perhaps flown to TSV for repaint in that scenario.

If I remember some of the ZL birds have the tricolour VA seat covers and the purple bulkhead still (not that VA want that any more)

 

[HS-TQE]

If I remember some of the ZL birds have the tricolour VA seat covers and the purple bulkhead still (not that VA want that any more)

I'd suspect the oldest 738s at REX are freighter conversion candidates. They were reported 'hanger queens' in the final years at VA.

 

[henrus]

Eventually the Saab340 will need to be replaced. Maybe the ATR42?

Well back in 2020 Rex signed a "non-binding Memorandum of Understanding" with ATR, it's anyones guess where that piece of paper is sitting right now.

 

[elanshin]

Well hopefully it isn't anything major, but I wouldn't be surprised. They're still somewhat struggling to fully fill planes even when QF/VA has relatively full loads on the 737 routes.

 

[tcasfail]

I'd suspect the oldest 738s at REX are freighter conversion candidates. They were reported 'hanger queens' in the final years at VA.

Probably even scrap. RQG is currently being scrapped in ASP. There’s been a slow down in 800F demand.

 

[RSVKanga]

I think all the 737s still have some sort of life beyond ZL.

The question is what to do with those 30 Saab 340s that have been parked for a long time, and I’d bet most of them aren’t even airworthy now.

 

[Saab34]

I think all the 737s still have some sort of life beyond ZL.

The question is what to do with those 30 Saab 340s that have been parked for a long time, and I’d bet most of them aren’t even airworthy now.

I assume they own them, just use them for parts?

 

[louis_syd]

I think all the 737s still have some sort of life beyond ZL.

The question is what to do with those 30 Saab 340s that have been parked for a long time, and I’d bet most of them aren’t even airworthy now.

I feel like VA would be interested

 

[HS-TQE]

I feel like VA would be interested

They would only be interested in some of the younger aircraft, imo. Cant see them being interested in "getting back' the 20 year old "hanger queens'

 

[RSVKanga]

I feel like VA would be interested

They might be interested in a few of those Saab 340s that are operational and airworthy, but probably not the remaining 30 that are stored and likely not airworthy.

 

[HS-TQE]

I'm thinking the better candidates for the airworthy SAABs at REX should worse come to pass is either Link Airways (an existing operator) or a slim chance of FlyPelican.

 

[Quickstatus]

but probably not the remaining 30 that are stored and likely not airworthy.

Used for parts, just as QF cannibalised end of life aircraft including their 747 and 380 for parts.
ZL has probably the world's largest inventory of SAAB340 parts.

Back in 2013 ZL purchased from another large US Saab340 operator their entire spare parts inventory. The press release mentioned that their inventory would assure another 15 years operation from 2013. That would be 2028.
Can't fly any aircraft without available spare parts and no doubt they have been keeping an eye out for airframes and parts over the years.

the better candidates

Dont forget NZ, Canada. They will get them wherever they can.

 

[simmomelb]

I can see them pulling their jet services effective shortly and scaling back to what they offered before. That did relatively well for a long period.

 

[HS-TQE]

Mainstream Media (non-Aviation/financial) is now starting to pick up the articles on REX's financial troubles, with 10 and ABC picking it up.

This could turn bad for REX pretty quickly as people start to panic and either book away/ask for refunds similar to Bonza and before that VA 1.0 with the mass points/toasters/krisflyer redemptions back in 2020.

 

[Dmac59]

Mainstream Media (non-Aviation/financial) is now starting to pick up the articles on REX's financial troubles, with 10 and ABC picking it up.

This could turn bad for REX pretty quickly as people start to panic and either book away/ask for refunds similar to Bonza and before that VA 1.0 with the mass points/toasters/krisflyer redemptions back in 2020.

I agree.
With the Bonza episode so fresh in our minds, I would not be making any bookings with REX in the short term.

 

[Saab34]

If I was an employee I’d be cashing out AL.

 

[Saab34]

I can see them pulling their jet services effective shortly and scaling back to what they offered before. That did relatively well for a long period.

How does that work with leases? Ie if they decided to pull back to 5/6 Jets. Wouldn’t you need to pay out the lease?

 

[Must...Fly!]

I'm thinking the better candidates for the airworthy SAABs at REX should worse come to pass is either Link Airways (an existing operator) or a slim chance of FlyPelican.

Operationally for VA it makes a lot of sense to take over some of the Rex network again. It would assist with transcon traffic to/from Perth for example.

However, realistically VA have their own capex commitments to try and fund over the medium term, so having a whole other operation to fund is one thing, but to then have to find the capital to furnish it with new aircraft - of which the type is not immediately obvious - is a serious issue and would do nothing but to serve as a distraction.

An operator will be found for the critical routes, whoever takes it over would do well to partner closely with VA instead of actively working against them.

 

[simmomelb]

How does that work with leases? Ie if they decided to pull back to 5/6 Jets. Wouldn’t you need to pay out the lease?

Another airline could take over the leases, and given the demand for additional aircraft right now from airlines, I can't see that being an issue.

 

[HS-TQE]

Another airline could take over the leases, and given the demand for additional aircraft right now from airlines, I can't see that being an issue.

Fairly sure there are penalties for ending leases earlier than planned. It may depend on how long those leases were signed d for.