Rex to fly between Australian capital cities

[dajop]

I would imagine Rex would look to fly to PER, DRW or CNS before New Zealand.

There's probably a broad array of domestic routes that could be worked on before looking at NZ, without even considering DRW/PER. Destinations like MCY, HTI, CNS, TSV, BNK, NTL etc For example I'm struggling to see how something like DUD-OOL would more profitable than say NTL-CNS ...

 

[henrus]

Qantas has dropped its lowest CBR-MEL fares from $218 to $99 from 10 June.

What this now means is that agents will see the following starting prices:



This now means that Rex has the most expensive starting price of the three carriers when booking via an agent (remembering most companies and the gov book via an agent).

 

[Berlin]

I just don't see why Rex would be successful in the long term while so many airlines haven't been. Tiger is dust and tried from the cheap end and Virgin is back to half its former self, even after trying so hard and for so long to woo lucrative corporate clients with a presumed equal to Qantas product. I personally never believed the latter and my few experiences on them were proof for that (childish and unprofessional crew, mediocre catering, having to use the Bogan terminal in Sydney and so on...) but at least for a while, they seemed to be quite successful in their efforts.

So why Rex? The brand is mostly known to country folks (and by quite many of them loathed rather than loved, I may add) who won't be the ones saving the airline on the main city routes. And both Qantas and Virgin will just start dumping cheaper fares on those routes (they're doing it already, actually) which might be sustainable for them (Qantas, at least) but will not help Rex. Top this off with not being member fo any loyalty program, it really leaves the cheap ticket crowd- and they already got Jetstar!

Maybe I am too pessimistic but I can't help but getting the feeling that the whole idea is doomed from the start. Rex has the word "regional" in its name and probably should stick to it rather than following grand dreams that will fail, sooner or later. I might be wrong of course, who knows.

 

[henrus]

having to use the Bogan terminal in Sydney

Have seen a couple of references about T2 on AFF this week. Budget terminal... Bogan terminal, what next?

Flying VA out of T2 pre covid was probably the most pleasant domestic airport experience pre covid thanks to the premium lounge entry and having to never step foot in the terminal until it came to boarding.

 

[Berlin]

Rex's cost are much lower.

So were Tiger’s I’m sure…

Nothing special at all about qantas.

As a long term frequent flyer, I would very much disagree with this statement.

The many times I’ve enjoyed flying in First solely on points that I earned, amongst others, on recurring short hops on the “triangle” alone has been worth my loyalty.

And there are many many more reasons why Qantas is pretty special to me.

 

[henrus]

Nothing special at all about qantas.

100% agree, there is nothing special about Qantas. After all, they get you from A to B like the rest of them however they make people feel special, as noted above this makes people loyal to them.

Jetstar doesn't include a checked bag & has terrible reputation with any disruption.

Got to give it to Jetstar, when Newcastle airport went under earlier this year, they were very re-accommodating (changing flights to/from SYD). More recently a family member had a flight canceled the morning of an evening departure and they received an email asking which alternative flight they'd like to be changed to free of charge (Qantas flights were amongst the options). Things are Jetstar are getting much much better!

 

[wandering_fred]

Alas some of us consider(ed) the only special part of QF to be their international flight network (and OW partners).

If I said what was left at the moment was special, I might be wandering
Fred

 

[Saab34]

Tiger flew to Canberra for 10 years and had twice a day from Melbourne. Used it a few times in the early days as it seemed to be a solid performer, they also had the same schedule as Rex above. Seemed to be a market Tiger always did well in.

I don’t think they will have any issue on this one, the Tiger market should really go across to Rex in this one, no Jetstar to deal with here.

 

[dajop]

no Jetstar to deal with here.

Would anyone be surprised if Jetstar started at CBR/MEL service in the near future?

 

[Saab34]

Canberra seems a no go zone for Jetstar. I assume as many corps on the QF network will probably take the cheaper option with the star.

Was a Canberra gap between Tiger 1.0 and 2.0 of a couple of years and they didn’t launch then so probably won’t now

 

[dajop]

Was a Canberra gap between Tiger 1.0 and 2.0 of a couple of years and they didn’t launch then so probably won’t now

They weren't trying to destroy Tiger, they are trying to rid themselves of Rex though

But it probably would be too obviously predatory after never using JQ at all in CBR.

 

[antycbr]

Canberra seems a no go zone for Jetstar. I assume as many corps on the QF network will probably take the cheaper option with the star.

Was a Canberra gap between Tiger 1.0 and 2.0 of a couple of years and they didn’t launch then so probably won’t now

JQ has been around for a long time now. There’s no way they’ll start CBR. They had the opportunity to do so when mainline and Qlink started OOL and MCY.

It’ll dilute the premium charged for CBR residents, not all of whom are federal public servants by the way - Canberra has half a million people in the catchment. But a lot of them do have QF loyalty through necessity of lack of options.

Sydney is viable by bus car and train, Melbourne isn’t even with the freeway upgrades for a long weekend.

 

[muppet]

JQ would cannibalise QF without actually stimulating demand.

CBR has high average incomes and so will travel regardless, why let them do it cheap?

JQ in AVV, MEL, SYD stimulates demand from the lower income brackets. Everyone in CBR already travels.

Plus a $39 JQ fare in CBR, unlike in MEL and SYD, i could drink that in the J lounge waiting.

 

[dajop]

The reasons why JQ haven’t entered CBR so far are clear. But things may change if QF wants to weaken Rex even further (although might be too obvious).

They could run a token JQ service just to MEL to drive Rex out and pick up the low yield pax whilst maintaining the high fares on QF. Exit the market a few months after Rex does.

Too cynical perhaps?

 

[antycbr]

The reasons why JQ haven’t entered CBR so far are clear. But things may change if QF wants to weaken Rex even further (although might be too obvious).

They could run a token JQ service just to MEL to drive Rex out and pick up the low yield pax whilst maintaining the high fares on QF. Exit the market a few months after Rex does.

Too cynical perhaps?

They don’t need to - VA seems happy to do that on QFs behalf

 

[Mattg]

The reasons why JQ haven’t entered CBR so far are clear. But things may change if QF wants to weaken Rex even further (although might be too obvious).

They could run a token JQ service just to MEL to drive Rex out and pick up the low yield pax whilst maintaining the high fares on QF. Exit the market a few months after Rex does.

Too cynical perhaps?

The ACCC would likely pounce on Qantas if it did that. Would be far too obvious.

 

[henrus]

The ACCC would likely pounce on Qantas if it did that. Would be far too obvious.

New Jetstar 787 route map. $39 fares on all routes

(oh wait... that'd be too obvious as well)

To avoid any future problems, the Qantas group should just announce that Jetstar is "coming soon" to every possible route in Australia. That way if/when Rex does launch, JQ can magically launch and say they are all of a sudden ready.

 

[AIRwin]

View attachment 248397

Next Rex route between ADL and OOL to close the loop?

 

[henrus]

Next Rex route between ADL and OOL to close the loop?

Good thing JQ and VA already operate that route. They'll both be at the ready to drop fares when ZL enters.

 

[jakeseven7]

Good thing JQ and VA already operate that route. They'll both be at the ready to drop fares when ZL enters.

And QF is swooping into that route in a classic pincer movement in June to scoop up all the premium passengers, JQ will scrape up the ultra budget crowd leaving VA and Rexy to fight over the budget/middle ground.

The middle ground is a very dangerous place to be in most market segments, especially the Australian aviation market.