Rex in voluntary administration, ending all 737 services

[clifford]

Rex is the perfect example of everything that’s wrong with this little island.

Perhaps you could suggest somewhere better?

 

[Ansett Nostalgic]

Perhaps you could suggest somewhere better?

Antarctica

 

[N860CR]

Perhaps you could suggest somewhere better?

We literally have an airline that took money from the taxpayer to “survive” (during a time when certain people thought moving within your own state was a capital offense), used it to expand into an entirely new type of operation, named an aircraft after the minister who was largely responsible for said grant, has continually destroyed the rights of workers, bullies small local governments, sends basically all profits offshore… and we’ve got people now screaming “government bail them out!!!!”

Sound reasonable?

 

[RSVKanga]

We literally have an airline that took money from the taxpayer to “survive” (during a time when certain people thought moving within your own state was a capital offense), used it to expanded into an entirely new type of operation, named an aircraft after the minister who was largely responsible for said grant, has continually destroyed the rights of workers, bullies small local governments, sends basically all profits offshore… and we’ve got people now screaming “government bail them out!!!!”

Sound reasonable?

Agreed.

The presence of VH-MFM in its current registration makes that aircraft a symbolic disgrace to Australia and our supposed values. I don’t recall any commercial airline in the developed, democratic world naming an aircraft after a politician.

Things don’t get better when the fact is that, as you say, said naming was due to said politician authorising an excessive politically-motivated bailout for Rex (more than QF+VA combined), used for this jet scheme while cutting the regional routes that the money was earmarked for (without enforcement) and shipping the profits to Singapore and Hong Kong.

Australians should be ashamed of how much taxpayer money has been wasted on and misused by this dinosaur since its inception, but particularly in these past four years.

 

[CaptJCool]

Let the VA process take its course


Already they at least temporarily run the business with the previous management sidelined.

They can prune the business costs both operational and capital
The particular problem of leasing costs which are cheaper until they’re not is definitely a likely deal-breaker especially if aiming to Find a buyer

Upfront those costs look cheaper but everyone knows rent / leasing expenses are relentless. A license to a service experience. They never end.


Unlike the cost of capital outright purchase where it’s eventually paid off if you do need to borrow cash to do so.

As for government bailouts.
Risk risk risk
Staggers me govt can’t don’t won’t receive shares for the cash they put into any corporation nor do they appear to “lend” money where the loan and interest is repaid.

Grants are a lazy way to handout cash as there’s no obligation to repay anything but they pump up cashflow chronically but they also allow directors to siphon Orf excess cash to spend on “personal spending” like a harbour side mansion or share buybacks (50% tax discount) and so on



Or worst case wind up the airline

 

[N860CR]

The presence of VH-MFM in its current registration makes that aircraft a symbolic disgrace to Australia and our supposed values. I don’t recall any commercial airline in the developed, democratic world naming an aircraft after a politician.

I don’t believe there’s even a P-KIM

But there are always folk who believe Australia is the be all and end all . Which may explain why we are in the position we are.

 

[RSVKanga]

I’m not sure why a loud minority continues to scream for a bailout. It should be the opposite. Punishment.

The government should punish Rex for the misuse of a huge amount of taxpayer funds intended for regional routes instead used for this jet operation while regional routes were cut. This should ideally mean that all regional subsidies for Rex are terminated. It will expose the already insolvent business to pure market forces and the dinosaur will die sooner rather than later. There won’t be any electoral damage to the government as they hold hardly any seats that have Rex-monopoly destinations. Only a handful of towns will be impacted anyway.

The next step would be to incentivise profitable, trusted Australian-owned regional airlines like QLink, Pelican, Link, Nexus and Sharp to fly to those handful of destinations that will be impacted. As mentioned earlier in the thread, the QLD “milk run” is the easiest to fix as they are government (Translink) outsourced public air transport services, not subsidised Rex routes.

Regional aviation needs future thinking, not continued support of a “more of the same” offshore-owned dinosaur.

 

[N860CR]

I’m not sure why a loud minority continues to scream for a bailout. It should be the opposite. Punishment.

The government should punish Rex for the misuse of a huge amount of taxpayer funds intended for regional routes instead used for this jet operation while regional routes were cut. This should ideally mean all subsidies for Rex are terminated. It will expose the already insolvent business to pure market forces and the dinosaur will die sooner rather than later. There won’t be any electoral damage to the government as they hold hardly any seats that have Rex-monopoly destinations. Only a handful of towns will be impacted anyway.

The next step would be to incentivise profitable, trusted Australian-owned regional airlines like QLink, Pelican, Link, Nexus and Sharp to fly to those handful of destinations that will be impacted. As mentioned earlier in the thread, the QLD “milk run” is the easiest to fix as they are government (Translink) outsourced public air transport services, not subsidised Rex routes.

Regional aviation needs future thinking, not continued support of a “more of the same” offshore-owned dinosaur.

At the end of the day, how many people really live in these places? Why are we even debating it? More people reside in a Pyrmont apartment block than many of these tinpot towns. If there’s a market, an airline will service it. If there’s not, frustratingly, the government will subsidize a service.

The main argument now seems to be “government should provide subsidies so that two airlines operate a route that warrants a daily Fortuner”.

 

[dajop]

How many posts do we need saying the same thing over and over and over again?

 

[N860CR]

How many posts do we need saying the same thing over and over and over again?

Isn’t that how discussion forums work?

 

[Aussie_flyer]

How many posts do we need saying the same thing over and over and over again?

I agree actually. I think RSVKanga and N860CR have made their point (many times over now). I come back to see some fresh discussion or news but it's been the same for several pages of comments now.

 

[Saab34]

I wasn’t aware that MFM was named after a Politician. Truly disgraceful.

 

[QF WP]

How many posts do we need saying the same thing over and over and over again?

Isn’t everybody entitled to their opinion, even if it mirrors others? As you are entitled to yours?

The joys of having a massive country with transporting people from place to place. Often the majority of what we eat or use comes from rural areas. So getting the products to market, air cargo is part of that lifeblood. Sometimes we have to give in order to receive. It might be interesting to see if we didn’t have airlines servicing rural towns, how our economy might suffer.

Of course, it’s on you to continue, or not continue, to read these posts.

 

[dajop]

Isn’t everybody entitled to their opinion, even if it mirrors others? As you are entitled to yours?

Absolutely.

But it’s not that I object to. People share them same opinion that’s fine they can agree to whatever other posts they want, reiterate, embellish etc.

But if if its same poster repeating the same opinion over and over again, well it gets a bit “yes we know, you’ve told us that already 3-4 times.”. Just seems like post padding to me .

Perhaps I need to edit my post to say “ How many posts do we need from the same posters … “

 

[UP4014]

How many posts do we need saying the same thing over and over and over again?

Why use 10 words when you can use 100. We all know a person like that.

 

[encryptededdy]

Just taxied past these 4 in MEL

 

[OATEK]

Staggers me govt can’t don’t won’t receive shares for the cash they put into any corporation nor do they appear to “lend” money where the loan and interest is repaid.

Grants are a lazy way to handout cash as there’s no obligation to repay anything but they pump up cashflow chronically but they also allow directors to siphon Orf excess cash to spend on “personal spending” like a harbour side mansion or share buybacks (50% tax discount) and so on

At the heart of things, Government works on an annual cash basis as many on here would know. So one-off grants fit perfectly in the recurrent spending cycle of annual allocations, and do not tie the Govt to long term involvement through share ownership.

 

[Saab34]

Rex will have a 737 Sim it can sell off I guess. They don’t come cheap, I understand it was funded by the LNP NSW Government, and supplied by CAE.

 

[Mwenenzi]

Rex will have a 737 Sim it can sell off I guess. They don’t come cheap, I understand it was funded by the LNP NSW Government, and supplied by CAE.

Depends if 100% owned outright, any debt pledged against asset and/or leased. Now days many airlines "own" nothing.

 

[clifford]

Now days many airlines "own" nothing.

Apart from the debt.