Rex in voluntary administration, ending all 737 services

[Saab34]

I feel like the government has put itself in a corner and is now open to handing over cash to preserve the ‘longevity’ of the regional business.

I don’t believe we need to give them a cent. They have the ability of the administration to remove costs. They already get ample taxpayer relief across many of its routes. The NSW Liberals gave them millions for sims, hangers, wages.

Rex will now use all this government dialogue to rip some extra cash which will only be used to prop up PAG.

 

[Quickstatus]

I don’t believe we need to give them a cent

I suspect that ZL will come under the "too big to fail" in the regional and rural context.
They have to recapitalise, and there are ways to do it without propping up private equity investors. If Guvment $ is required that that should involve diluting existing equity interests rather than prop it up.

 

[VPS]

If you have purchased a Rex ticket on a credit card can you do a chargeback and if you don't get your flight

 

[equus]

Yes. Depending on the bank that issued your card, and who Rex banked with, you may or may not encounter push back, but if goods or services are not delivered, that is ground from a credit card chargeback (but you would need to wait until after the flight was due to be taken).

As most travel insurance policies do not cover insolvency of providers, purchasing tickets on credit cards is good insurance (just think of the surcharge as an insurance fee). quite apart from any points earn.

 

[Aussie_flyer]

If you have purchased a Rex ticket on a credit card can you do a chargeback and if you don't get your flight

Or just fly Qantas or Virgin? Wouldn't that be a lot easier

 

[RSVKanga]

I suspect that ZL will come under the "too big to fail" in the regional and rural context

Big? ZL’s regional network is smaller than Qantas’ regional network by a lot (difference of about 12 destinations). As of now, QF flies to 54 regional destinations across the country while ZL only flies to 42*. A lot of people are stuck in the past and haven’t realised how much ZL has contracted and how much QF has grown regionally in the past five years. There is only a small handful of ZL-exclusive markets now.

*Regional counts as every destination apart from the capitals, OOL and CNS.

I feel like the government has put itself in a corner and is now open to handing over cash to preserve the ‘longevity’ of the regional business.

I don’t believe we need to give them a cent. They have the ability of the administration to remove costs. They already get ample taxpayer relief across many of its routes. The NSW Liberals gave them millions for sims, hangers, wages.

Rex will now use all this government dialogue to rip some extra cash which will only be used to prop up PAG.

100% agree.

 

[VPS]

Or just fly Qantas or Virgin? Wouldn't that be a lot easier

It is Melbourne Cup weekend so may not be seats

 

[p--and--t]

Or just fly Qantas or Virgin? Wouldn't that be a lot easier

Would be a lot more economical and easier to book a free flight with QF, VA, JQ than get a refund then book a flight at up to treble the fare depending on timing.

 

[MooTime]

Absolutely Gov will assist Rexy with cash. Absolutely no doubt about it. Yes PAG can, but gov will don't worry about that, they'll word it so doesn't sound so obvious but there'll be an assistance / helping hand.

The amount the gov threw at QF during covid again and again, wrongly kept job keeper, paid back nothing, unlike other ASX listed companies volunteered and otherwise did return a portion of funds to feds.
Last I checked Qantas are ASX listed.

Yeah let Rexy fold & collapse. We know damn well what'll happen to regional fares once Qantas only carrier on routes!
More daylight robbery.

QF will enhance regional travel.

 

[Saab34]

So if the government do throw some cash, do you think it’s wise for them to expect an equity stake?

I recall the QLD Governments investment fund ended up with a small stake in Virgin for providing cash.

 

[p--and--t]

Absolutely Gov will assist Rexy with cash. Absolutely no doubt about it. Yes PAG can, but gov will don't worry about that, they'll word it so doesn't sound so obvious but there'll be an assistance / helping hand.

The amount the gov threw at QF during covid again and again, wrongly kept job keeper, paid back nothing, unlike other ASX listed companies volunteered and otherwise did return a portion of funds to feds.
Last I checked Qantas are ASX listed.

Yeah let Rexy fold & collapse. We know damn well what'll happen to regional fares once Qantas only carrier on routes!
More daylight robbery.

QF will enhance regional travel.

History now, but IIRC Rex got more handouts than VA and QF combined to operate services during covid.

Maybe that's why they named one of their aircraft after the minister of the time

 

[henrus]

I was a bit shocked this afternoon arriving at T2 to see the Rex lounge open with business as usual.

 

[RooFlyer]

A lot of people are stuck in the past and haven’t realised how much ZL has contracted and how much QF has grown regionally in the past five years. There is only a small handful of ZL-exclusive markets now.

Oh, I think many are acutely aware of this, especially in the regions. QF regional growth ----> ZL contraction. Ya think there's not a connection?

 

[elanshin]

Big? ZL’s regional network is smaller than Qantas’ regional network by a lot (difference of about 12 destinations). As of now, QF flies to 54 regional destinations across the country while ZL only flies to 42*. A lot of people are stuck in the past and haven’t realised how much ZL has contracted and how much QF has grown regionally in the past five years. There is only a small handful of ZL-exclusive markets now.

*Regional counts as every destination apart from the capitals, OOL and CNS.

From a government perspective, its not about whether QF has coverage, but rather if they let ZL fail and none of the other airlines pick up those routes, QF monopoly will destroy those routes (from an increasing price). And we have seen QF monopoly in action so it's not a question of if they will do it but when.

That's the real concern here. As for what the solution is, I'll let those that are being paid to do the job and find out.

 

[justinbrett]

Oh, I think many are acutely aware of this, especially in the regions. QF regional growth ----> ZL contraction. Ya think there's not a connection?

Because Rex decided being a regional airline was boring and decided to focus all of its efforts and resources in pretending to be a big boy airline.

That has been the position of the government. Rex brought this on itself. Maybe they should go back to using their name in full and remember what it stands for.

You don’t lose a million a day flying Saabs.

 

[RSVKanga]

Oh, I think many are acutely aware of this, especially in the regions. QF regional growth ----> ZL contraction. Ya think there's not a connection?

Unlike international aviation, Australia’s domestic aviation industry is a free and fair market with regulations to prevent predatory behaviour.

The ACCC ruled that QF’s regional expansion was not predatory.

For far too long, many regional towns and cities like Burnie, Merimbula, Griffith, Cooma, Broken Hill and Mount Gambier were stuck with Rex being the monopoly airline offering expensive, inferior service with ageing aircraft, no loyalty program and no connection network. That all changed from 2021 and it looks like those communities have embraced Qantas’ presence positively. You can’t blame communities for choosing who they fly with, especially in a free and fair market like our domestic aviation sector.

 

[DC3]

Unlike international aviation, Australia’s domestic aviation industry is a free and fair market with regulations to prevent predatory behaviour.

The ACCC ruled that QF’s regional expansion was not predatory.

For far too long, many regional towns and cities like Burnie, Merimbula, Griffith, Cooma, Broken Hill and Mount Gambier were stuck with Rex being the monopoly airline offering expensive, inferior service with ageing aircraft, no loyalty program and no connection network. That all changed from 2021 and it looks like those communities have embraced Qantas’ presence positively. You can’t blame communities for choosing who they fly with, especially in a free and fair market like our domestic aviation sector.

Yes. I think that some of us have a limited idea of the reality and have got all of this back to front.

 

[RooFlyer]

That all changed from 2021 and it looks like those communities have embraced Qantas’ presence positively. You can’t blame communities for choosing who they fly with, especially in a free and fair market like our domestic aviation sector.

Sure; come into a market, undercut the smaller competitor and - like magic! passengers come to them.

 

[CaptJCool]

Free & fair

Yeah, you got rights

Capital cost to set up and run an airline means governments are one of the few willing to take the risk on a loss starter.

Even with Qantas, 51% Australian owned but receiving $2 billion over COVID. The least we could do is make Rex King again

 

[p--and--t]

I keep seeing references to QF preditory pricing. Last time I flew REX from Sydney to Orange (40mins) I paid more than a flight to Singapore.