Rex in voluntary administration, ending all 737 services

[clifford]

Does it necessarily have to be small players? I’m sure QantasLink, Australia’s largest regional airline, can find enough planes to fill the gap in a reasonable time frame. That section of QF doesn’t have a strained fleet like Qantas international. It’s only a handful of destinations anyway that will be impacted if Rex folds. There are some destinations where the Q300 and Q400 will not be appropriate, and that’s where the smaller players come in to fill the gaps, like the Link Saabs, Pelican Jetstreams or Skytrans caravans.

Why are you advocating for higher fares for the travelling public?

I guess we all know the answer

 

[N860CR]

Why are you advocating for higher fares for the travelling public?

I guess we all know the answer

What’s the answer?

I don’t think anyone is advocating for higher fares. People are, quite logically, stating that a failed foreign airline shouldn’t receive public funds for the single purpose of creating “competition” where there’s no market for it.

 

[elanshin]

What’s the answer?

I don’t think anyone is advocating for higher fares. People are, quite logically, stating that a failed foreign airline shouldn’t receive public funds for the single purpose of creating “competition” where there’s no market for it.

That's the thing here. Whether its a new bailed out rex or another airline, what people here are arguing is that it shouldn't be QFLink taking over because that will just result in one thing.

 

[jb747]

Isn't the question now about having flights or not? Not having cheap flights or expensive ones. It's about having any flights at all.

 

[RSVKanga]

That's the thing here. Whether its a new bailed out rex or another airline, what people here are arguing is that it shouldn't be QFLink taking over because that will just result in one thing.

What thing?

Qantas-oneworld points/status on more regional routes?

Larger, younger, quieter aircraft, on average 12 years younger than a typical Rex Saab?

Connections to over 60 domestic destinations and international flights to all continents?


Also, it’s about stability, not competition. Qantas, usually being a very profitable business, can afford to fly to many regional and remote destinations at a loss and you can bet on them remaining committed to those destinations, regardless of the level of subsidy.

Rex, being in a less stable position, almost fully relies on subsidies and have erratically cut services the moment subsidies run out, and have left some towns without an air service permanently.

Rex, like any other foreign owned airline, has only one goal which is to make money and export that cash to the Singapore billionaire’s bank account and that Hong Kong equity firm, not to serve regional communities.

 

[MEL_Traveller]

What thing?

Qantas-oneworld points/status on more regional routes?

Larger, younger, quieter aircraft, on average 12 years younger than a typical Rex Saab?

Connections to over 60 domestic destinations and international flights to all continents?


Also, it’s about stability, not competition. Qantas, usually being a very profitable business, can afford to fly to many regional and remote destinations at a loss and you can bet on them remaining committed to those destinations, regardless of the level of subsidy.

Rex, being in a less stable position, almost fully relies on subsidies and have erratically cut services the moment subsidies run out, and have left some towns without an air service permanently.

Rex, like any other foreign owned airline, has only one goal which is to make money and export that cash to the Singapore billionaire’s bank account and that Hong Kong equity firm, not to serve regional communities.

Qantas is not going to operate the routes at a loss. Period.

If Rex - or any other airline - bids for regional routes and receives a subsidy… Qantas would also take that subsidy if they were the successful tenderer.

I’m pretty sure Qantas is no different to any airline… their shareholders will require them to make a profit. Not run regional services for free.

 

[N860CR]

Isn't the question now about having flights or not? Not having cheap flights or expensive ones. It's about having any flights at all.

Correct. However this is morphing into the government for some reason having to fund “competition” so certain people can have lower fares. This is not indifferent to the bonza debacle. People whinged that “fares will go up” when bonza was selling well below cost price.

The government already subsidises a huge number of regional routes. That’s not enough for some.

Having lived in regional Queensland for a while, I did pickup on a real “victim complex” that a lot of country people have. At the end of the day, the market will dictate prices. Rex was running aircraft that were often not even half full. How do people expect to get $59 fares?

 

[MEL_Traveller]

For me, the only need for ‘competition’ is to ensure value for money during the tender process. You don’t need competition on the actual route itself, just to provide some playing field to ensure the government and taxpayer are paying a fair price.

 

[N860CR]

For me, the only need for ‘competition’ is to ensure value for money during the tender process. You don’t need competition on the actual route itself, just to provide some playing field to ensure the government and taxpayer are paying a fair price.

With Rex gone, we might have a better shot at that! I’m unaware of any other airline in the country that has registered an aeroplane with the initials of the transport minister.

 

[RSVKanga]

I do make the point that one of the many good things that will happen if Rex is finally liquidated is that most of the airlines who can/will fill the void will be Australian-owned, and not exist for the sole purpose of making money and exporting it to bank accounts of Singaporean billionaires and the coffers of Hong Kong investment firms.

Not just Qantas. Alliance, Nexus, Link, Sharp and Pelican are also all majority-Australian-owned. Skytrans is the only odd one out in being European owned.

 

[nancypants]

I do make the point that one of the many good things that will happen if Rex is finally liquidated is that most of the airlines who can/will fill the void will be Australian-owned, and not exist for the sole purpose of making money and exporting it to bank accounts of Singaporean billionaires and the coffers of Hong Kong investment firms.

Not just Qantas. Alliance, Nexus, Link, Sharp and Pelican are also all majority-Australian-owned. Skytrans is the only odd one out in being European owned.

Don’t forget airnorth which is owned by a Scottish company

 

[MooTime]

I do make the point that one of the many good things that will happen if Rex is finally liquidated is that most of the airlines who can/will fill the void will be Australian-owned, and not exist for the sole purpose of making money and exporting it to bank accounts of Singaporean billionaires and the coffers of Hong Kong investment firms.

Not just Qantas. Alliance, Nexus, Link, Sharp and Pelican are also all majority-Australian-owned. Skytrans is the only odd one out in being European owned.

Rex as Australian as Qantas mate.

Both listed on the bourse.

Qantas heavily invested by foreign money, don't worry about that, always has been.

<redacted>

 

[Ansett Nostalgic]

Rex as Australian as Qantas mate.

Both listed on the bourse.

Qantas heavily invested by foreign money, don't worry about that, always has been.

<redacted>

Good point.

And there's certainly nothing Australian about the extreme in-your-face political agendas that Qantas has been promoting in recent years especially under Alan Joyce.

 

[RSVKanga]

Sorry but you don't get to unilaterally decide that all the "milk run" destinations in QLD don't exist just because the QLD Government contracts them, sad to say but these communities still do exist despite your assertions that they have somehow magically vanished from the face of the earth.

Because they are not Rex destinations. Even Rex themselves acknowledge it on their route map with a separate colour. They are government routes that are outsourced, not Rex routes that are subsidised (which many of the orange routes fall under).



It’s like saying the Sydney Ferries network are Transdev routes when they’re really NSW Government routes just contracted to Transdev for operational purposes. It’s Transport for NSW that still runs the show, and are able to regulate routes, change the contractor etc if they wish.

The QLD “milk run” network is no different. So if Rex is liquidated, Queensland will be easiest to fix as the government can just change the contractor to someone like Qantas and everyone lives happily ever after.

 

[Saab34]

The QLD milk run can be easily offloaded.

Hinterland or Skytrans can look after the North QLD routes, QLink the south.

I recall Hinterland is taking some Cessna Skycourier Turboprops this year, this will give them access to most of QLD regional.

 

[drron]

Because they are not Rex destinations. Even Rex themselves acknowledge it on their route map with a separate colour. They are government routes that are outsourced, not Rex routes that are subsidised (which many of the orange routes fall under).

View attachment 400693

It’s like saying the Sydney Ferries network are Transdev routes when they’re really NSW Government routes just contracted to Transdev for operational purposes. It’s Transport for NSW that still runs the show, and are able to regulate routes, change the contractor etc if they wish.

The QLD “milk run” network is no different. So if Rex is liquidated, Queensland will be easiest to fix as the government can just change the contractor to someone like Qantas and everyone lives happily ever after.

I might even go to Boulia, Doomadgee or Thargomindah to watch the first Q400 land. I would think most of the population of both Boulia and Thargomindah would be out at the air strip to watch as well. populations 314 and 243 respectively. Doomadgee has a population of over 1300 but 19% unemployment and a median weekly wage less than half of the rest of Qld.

 

[MEL_Traveller]

The QLD “milk run” network is no different. So if Rex is liquidated, Queensland will be easiest to fix as the government can just change the contractor to someone like Qantas and everyone lives happily ever after.

Presumably they’d need to go through a competitive tender. Who is going to fly it? do they have the fleet? Are they going to offer value for money?

I’m guessing Rex won the right to operate the services because they had the right size planes and right operating efficiencies. If an airline only has 737s, they’re going to cost the government a lot more.

Who’s got enough planes, at the right size, standing by to simply ‘take over’ the rex routes?

 

[henrus]

It’s rather amusing at Sydney T2 there are still two Rex 737s at the gates including one at an air bridge (blocked in with a concrete block). I would have thought if I was Sydney airport you’d want them moved to free up those gates (similar to how Brisbane has moved it near the Qantas remote parking).

 

[MEL_Traveller]

Dramatic much? Do we really need the use of concrete blocks?

 

[UP4014]

It’s rather amusing at Sydney T2 there are still two Rex 737s at the gates including one at an air bridge (blocked in with a concrete block). I would have thought if I was Sydney airport you’d want them moved to free up those gates (similar to how Brisbane has moved it near the Qantas remote parking).

The airport can probably keep billing for the gate without needing to do any work. OK there might not be any money left but if there is then it could be a cash win for the airport. The gate might also be locked in to unexpired REX contract which is in place until the Administrator says otherwise.