Rex in voluntary administration, ending all 737 services

[UP4014]

Why didn't REX start renewing its aircraft with propeller jobs and stayed with it's Govt subsidised routes. Going against the 3 big guys was foreseeable suicide.

Egos at REX were bigger than expected and those egos have wrecked the business.

 

[yachty]

Today's AM on the ABC reported that Qantas had put on extra capacity (capacity dumping?) on the city routes that REX entered most recently. I wonder if the ACCC might look at that?

Not sure if we listened to the same piece but the one I heard said the jet operation was a "risky proposal knowing Qantas could" add capacity to challenge them, not that it did.

I think the ACCC has the ability to demand internal documents from a business - that's what happened in the 'ghost flights' case. So the timing of internal documentation to put the extra capacity on (still relying on the ABC's reporting) would be interesting

They only did that then because there was litigation right, I don't think they could simply demand internal documents on a hunch?

 

[jb747]

Why didn't REX start renewing its aircraft with propeller jobs....

Which propellor jobs? There's not really a replacement for the SAAB, everything else is bigger. And in Rex's case, bigger almost certainly means less frequency and probably makes some destinations even less viable.

Not sure if we listened to the same piece but the one I heard said the jet operation was a "risky proposal knowing Qantas could" add capacity to challenge them, not that it did.

They only did that then because there was litigation right, I don't think they could simply demand internal documents on a hunch?

Surely you can't just pick a time of your choosing to compare QF's capacity. As best I can tell, they're still substantially below their capacity from the 767 days, when a heavy was departing every 30 minutes in each direction on the monorail.

 

[UP4014]

Which propellor jobs? There's not really a replacement for the SAAB, everything else is bigger. And in Rex's case, bigger almost certainly means less frequency and probably makes some destinations even less viable.

Sure go for something a bit bigger with less frequency but stick to your bread and butter to keep the ship steady and on the track; to mix some transport metaphors.

 

[SeatBackForward]

SeatBackForward Cheer up

Not sure what part of the post needed cheering up or down..

 

[Saab34]

The West reporting EY will be announced as administrators.

 

[FruitySnack]

Australian airline Rex set to appoint EY as administrators

Georgina McKay and Angus Whitley

Bloomberg

Tue, 30 July 2024 10:26AM

Australian regional airline Rex is set to appoint Ernst & Young as administrators, according to sources.

Shares of the carrier, formally known as Regional Express Holdings, were halted from trading Monday, pending a further announcement.

EY’s appointment could be announced as soon as Wednesday, according to the people, who asked not to be named.

A spokeswoman for Rex declined to comment. A spokesman for EY didn’t immediately return a phone call or reply to text messages.

Rex shares have fallen 35 per cent this year. The carrier mostly serves regional cities, but has more recently added services between capital cities such as Sydney and Melbourne, routes which are dominated by larger rivals Qantas and Virgin Australia.

Australia has already seen one airline fold this year, after upstart carrier Bonza in April suspended operations and appointed Hall Chadwick as administrators.

Embattled airline Rex ready to call in administrators

Australian regional airline Rex is set to appoint Ernst & Young as administrators, according to sources.

thewest.com.au

 

[FruitySnack]

Now also being reported in the Sydney Morning Herald.

 

[Saab34]

737 bookings have now been removed.

I assume today is the last day?

 

[Saab34]

looks like all flights removed?

I can still see Saab and regional flights.

 

[p--and--t]

Certainly seems all 737 flights cancelled from midnight tonight.

 

[jrfsp]

Jet ops will be wound up but Saab regional will continue by the sounds of it.

 

[simmomelb]

Yep regional flights are definitely still available, today looks to be the last day for any 737 flights.

 

[p--and--t]

Jet ops will be wound up but Saab regional will continue by the sounds of it.

Wouldnt mind betting background negotiations occurring with govmt on regional flights and associated subsidies

 

[Saab34]

Will be interesting to see how the others help. I assume free flights like Bonza. Or if they are refunded perhaps not, remains to be seen if they are even entering administration.

 

[Must...Fly!]

A shame really, but also a wonderful case study in what years of poor management in an otherwise profitable venture will net you.

 

[Harrison_133]

Jet ops will be wound up but Saab regional will continue by the sounds of it.

What about NJE?

 

[simmomelb]

Will be interesting to see how the others help. I assume free flights like Bonza. Or if they are refunded perhaps not, remains to be seen if they are even entering administration.

Rex Airlines to appoint EY as administrators

The Australian regional carrier’s financial future is in question as Transport Minister Catherine King says the federal government is in touch with the airline.

www.smh.com.au

 

[p--and--t]

This is NJE at present, not sure if this is situation normal

 

[FruitySnack]

I can't see SAAB flights either now.....