Rex in voluntary administration, ending all 737 services

[antycbr]

I’m sure we will find out because the government is sure to bail Rex out again and continue to subsidise their regional ops.

And in my view that is the wrong move. Continuing to prop up a zombie airline with taxpayers dollars makes no sense, and stops properly managed operators from growing.

 

[jakeseven7]

And in my view that is the wrong move. Continuing to prop up a zombie airline with taxpayers dollars makes no sense, and stops properly managed operators from growing.

Prepare yourself for another wrong move

 

[kamchatsky]

And in my view that is the wrong move. Continuing to prop up a zombie airline with taxpayers dollars makes no sense, and stops properly managed operators from growing.

It is all about votes in the country area. If Coalition is in government they would definitely propping them up.

 

[henrus]

Apparently VH-PAG (which has been in maintenance checks for the last month in Melbourne) has been sighted at the jet base with trucks parked in front of both engines.

Interesting because with Bonza, Melbourne airport weren't as strict and even during first creditors meetings said they'd be ok with nothing if more deserving creditors like staff got something.

How does it work for international interline ticket holders (Etihad and Delta)?

All three people silly enough to book Rex for the domestic connection would likely be rebooked by EY/DL onto VA. EY maintains codeshares on VA flights and DL still sells connections on VA and JQ often cheaper than ZL.

 

[antycbr]

It is all about votes in the country area. If Coalition is in government they would definitely propping them up.

I often called Rex the Air Wing of the National Party.

Post automatically merged: Jul 30, 2024

Interesting because with Bonza, Melbourne airport weren't as strict and even during first creditors meetings said they'd be ok with nothing if more deserving creditors like staff got something.

May be the maintenance provider performing the check rather than Melbourne Airport corporation

 

[Thibault]

All three people silly enough to book Rex for the domestic connection would likely be rebooked by EY/DL onto VA. EY maintains codeshares on VA flights and DL still sells connections on VA and JQ often cheaper than ZL.

Every time I look and book with EY from BNE, EY*VA / VA and QF are almost always cheaper than the ZL proposed options.

 

[Quickstatus]

Now, not only does Albury get QF flights to Sydney and Melbourne, truly connecting it with oneworld and the world,

. Then you don't understand why regional communities travel to the cities.
Edit ; or why people in large population centres travel to small regional cities

Domestic market free capitalism?. Not when it comes to the problem of connecting small regional communities with large population centres.

 

[RooFlyer]

So if the taxpayer is on the hook to subsidise core regional ZL flying, does it include ports such as Dubbo or Coffs Harbour, which arguably is adequately served by QF?

We'll hopefully find out tomorrow - if there is any subsidy.

 

[A321]

ZL489 operating as usual MEL-ADL making decent into Adelaide.
First things first, I hope the overnighting crew will be okay.
Secondly, we could have -RQC in Adelaide for a while if the rumours are true.
Poor form for tomorrow morning departures if services aren't running.

 

[henrus]

For those looking for a SYD-MEL flight on ZL tomorrow. There are options with a lovely 6.5hr transit in Wagga Wagga:

 

[RSVKanga]

I’m sure we will find out because the government is sure to bail Rex out again and continue to subsidise their regional ops.

I’ve said this before but if Rex hypothetically was an Australian-owned airline that was also Australia’s only turboprop airline and flew to 100 exclusive destinations, then of course they should be bailed out.

Rex is very far from that. We have so many other turboprop airlines in this country (QF, Link, Pelican, Alliance, Sharp - all of which are Australian-owned by the way) who can easily fill the void in regards to the small number of destinations that are exclusively served by Rex. Rex are majority owned by a Singaporean billionaire, offer an inferior regional service on ageing, unreliable aircraft with increasing safety concerns, not to mention the unnecessarily cosy political relationship they have with one particular party in this country, which I think most people are aware of. They also price gouge regional communities and are loathed by regional councils all across the country for their bullying and threatening behaviour towards regional airports, councillors and communities if specific “demands” are not met.

They are rotten to the core and must go.

I think the collapse of Rex will be a welcome freshening of Australian regional aviation.

If we let it crumble, Australian-owned turboprop airlines could take over exclusive Rex destinations, while non-exclusive Rex destinations will continue to be served by other airlines. Councils and airports will likely have a more productive relationship with air operators. Regional Australia will be better connected to the rest of Australia if airlines like Link, Pelican and QF take over (Link and Pelican are VA partners) as well as oneworld and rest of the world in the case of QF taking over a few routes.

 

[justinbrett]

There’s no evidence the regional QF (or VA) competition is what got ZL unstuck. In fact I think that’s unlikely.

It’s ZL’s brazen attempt to turn itself into a mainline jet airline with high cost leases and crewing costs that would have to be top of the list.

 

[antycbr]

There’s no evidence the regional QF (or VA) competition is what got ZL unstuck. In fact I think that’s unlikely.

It’s ZL’s brazen attempt to turn itself into a mainline jet airline with high cost leases and crewing costs that would have to be top of the list.

I don’t think that’s 100% definite.

QantasLink bought back 5 x DH8-300s that were being used for PropStar (JQs domestic NZ prop operation) when NZ and QF signed the regional codeshare deal on each side of the Tasman.

Qantas then started a wave of regional flying in what had been long established ZL ports such as MIM, BHQ, GFF, OAG just in NSW. There’s more in other states.

It wasn’t the undoing of ZL but I am sure it definitely didn’t help in the regions.

 

[Quickstatus]

There’s no evidence the regional QF (or VA) competition is what got ZL unstuck. In fact I think that’s unlikely.

I think the Saab routes remain profitable - while the Saabs can keep flying. The clock is ticking though as the day of reckoning will arrive when the spare parts inventory will eventually run out.

 

[Quickstatus]

inferior regional service on ageing, unreliable aircraft with increasing safety concerns

Inferior implies there is an alternative.

An A220, 737 or E Jet would be far too big. Even the ATR42 likely to also be too big. There are no like for like replacement that any of the Aust owned can come up with.

So, no, none of the other small operators have a solution either. And QF/VA don't either

 

[justinbrett]

I think the Saab routes remain profitable - while the Saabs can keep flying. The clock is ticking though as the day of reckoning will arrive when the spare parts inventory will eventually run out.

Yes, exactly. And we’ll know on the other side because that will be the arm of the business that remains. The jets will be gone for sure.

I don’t think that’s 100% definite.

QantasLink bought back 5 x DH8-300s that were being used for PropStar (JQs domestic NZ prop operation) when NZ and QF signed the regional codeshare deal on each side of the Tasman.

Qantas then started a wave of regional flying in what had been long established ZL ports such as MIM, BHQ, GFF, OAG just in NSW. There’s more in other states.

It wasn’t the undoing of ZL but I am sure it definitely didn’t help in the regions.

It’s just a matter of scale. Small props earn and lose money at a slow rate. Jets do that exponentially in both directions.

Clearly ZL gambled on VA folding and they’ve lost that bet.

 

[servicerequired]

Inferior implies there is an alternative.

An A220, 737 or E Jet would be far too big. Even the ATR42 likely to also be too big. There are no like for like replacement that any of the Aust owned can come up with.

So, no, none of the other small operators have a solution either. And QF/VA don't either

Q300 does the trick … right balance and right frequency.

These routes don’t require 3 SAAB per day … 2 per day max would suit in most instances.

 

[Harrison_133]

Website updated. It's official, the 737s are grounded. Saabs to continue.

Agreement reached with Virgin to honour tickets at no extra cost.

 

[A321]

Looks like adminstration is happening per the FAQs

Rex Flyer frequent flyer points will be frozen during the administration. You will not be able to use or accrue points during the administration period.
In the event of a successful restructure of the business accrued points may become available again. Further information will be provided in due course

Enquiries directed to EY

 

[henrus]

Website updated. It's official, the 737s are grounded. Saabs to continue.

Well they've also just accidentally leaked their in administration, worst kept secret ever: