Rex to fly between Australian capital cities

[jakeseven7]

Have a look at the price of crude oil and what its currently doing. Highest since 2014.

Rex has no ability to offset high fuel prices. If anything will break this operation it’s going to be $130 crude.

Interesting point actually. Will make marginal jet ops very hard to turn a dime. This will also impact VA2 who only have large gas guzzling 737s on their marginal leisure routes too (eg Tassie, QLD) now they have no ATR’s, Embraers to use.

 

[MooTime]

Interesting point actually. Will make marginal jet ops very hard to turn a dime. This will also impact VA2 who only have large gas guzzling 737s on their marginal leisure routes too (eg Tassie, QLD) now they have no ATR’s, Embraers to use.

Do QF not have gas guzzling 737's??? Do they not fly them to Tassie or QLD??

Or do they have all ultra efficient aircraft?

Mind you this is a Rex thread, but you mention something negative about VA.

 

[henrus]

Do QF not have gas guzzling 737's??? Do they not fly them to Tassie or QLD??

No, but Qantas have a fleet of aircraft they can swap onto routes with smaller demand. We see this all the time where VA operates a 737, Qantas operates Dash 8's or 717's (and yes I know VA has QQ operated routes but not enough).

The other thing is that VA has some freight contracts and Qantas have a lot of freight which can help offset running a 737 or even an A330. Rex doesn't seem to carry any freight on their 737 routes and I doubt Bonza will as well.

 

[dajop]

. Rex doesn't seem to carry any freight on their 737 routes and I doubt Bonza will as well.

Bonza is all about freight. That’s all they will carry. Self loading freight that is.

 

[Saab34]

The others do have the ability to raise prices to lessen the impact from surging fuel prices. VA have dropped prices significantly, so plenty of room to move. VA doesn’t have any long haul arm which generally is a sizable cash burner when fuel heads north. They both have high margins and loyalty programs to get them through any fuel volatility. Jetstar does have monopoly in the leisure side of things, no Tiger, and potentially a weak Rex.

Rex and Bonza can’t offset anything. They will just burn burn burn cash.

 

[AussieJasmine]

If the manure hits the ventilation system then Rex can jettison the 737s. Their Saabs are efficient, and regional routes command premium pricing, especially where they're the only game in town. The question is wether or not they'll be sensible enough to do that before the jets become an albatross around their neck, or will pride get in the way?

 

[jase05]

ADL-MEL service to resume November 26th

 

[AIRwin]

ADL-MEL service to resume November 26th

$59 sale fare

 

[antycbr]

If the manure hits the ventilation system then Rex can jettison the 737s. Their Saabs are efficient, and regional routes command premium pricing, especially where they're the only game in town. The question is wether or not they'll be sensible enough to do that before the jets become an albatross around their neck, or will pride get in the way?

I’d be betting on the pride… particularly given the personalities involved at the top of ZL.

The other thing that’s quietly been happening is QF are slowly moving into the most profitable end of ZLs regional flying, much to the annoyance of ZL who have been whinging extensively about this in the media.

 

[jase05]

$59 sale fare

Was already a bit of a price war going on with VA $70 and QF $88. VA J comes in about $20 cheaper than ZL though

 

[HS-TQE]

Will be a while (if at all) before REX sends their mainline 737s into BNE. Paywall articles suggest that BNE management told REX off after rejecting their 'demands' of discounted landing/ground fees (and were laughed off by rivals) at their recent meeting.

 

[Mattg]

Will be a while (if at all) before REX sends their mainline 737s into BNE. Paywall articles suggest that BNE management told REX off after rejecting their 'demands' of discounted landing/ground fees (and were laughed off by rivals) at their recent meeting.

So it turns out the same antics and bullying tactics that Rex uses with small local councils don't work with Brisbane Airport Corporation! Who would've thought?

 

[AIRwin]

So it turns out the same antics and bullying tactics that Rex uses with small local councils don't work with Brisbane Airport Corporation! Who would've thought?

BAC has the backing of JB on board?

 

[BRIS_VA_HAWK]

Interesting point actually. Will make marginal jet ops very hard to turn a dime. This will also impact VA2 who only have large gas guzzling 737s on their marginal leisure routes too (eg Tassie, QLD) now they have no ATR’s, Embraers to use.

Keep in mind that when VA1 had the Embraers, their leasing costs actually meant that they cost similar to run to the 737's (not on per seat, but total costs). The ATR's might have been used on some leisure routes (MEL-LST, SYD-PMQ/CFS, BNE-BDB/GLT/ROK) however they rarely seemed to be an upgauge/downgauge situation in the past.

 

[BRIS_VA_HAWK]

777's 'niche approach' such as OOL to Sydney-Wollongabba or OOL to Melbourne-Essendon on their 737-8 Maxes would be a very novel approach.

It's a long way between Sydney and Wollongabba....I assume that you mean Wollongong?

FWIW Wollongong Airport's location (approx. 20 minutes south of Wollongong and 90 minutes south of Sydney CBD) really pitches this as novel.

QF were successful in terms of patronage on WOL-MEL, however only ever ran a Dash 8-200. Not sure how Fly Corporate's WOL-BNE service are going with their Saab 340's??

 

[openseat]

Many eons ago the local rag in Nowra was talking about a Melbourne - Nowra (Albatross) flight by JQ.
Would Bonza do a milk run up the NSW coast out of Melbourne? - or is that a no-no for low cost carriers?

 

[BRIS_VA_HAWK]

A milk run might be viable using a Dash 8 or a Saab 340, but not with a 737.
You would also need passenger screening upgrades to be paid for as well. IIRC that may have been why QFlink only used the Dash 8-200 on WOL-MEL. No screening facilities at Wollongong, but arriving passengers screened at Melbourne.

 

[openseat]

A milk run might be viable using a Dash 8 or a Saab 340, but not with a 737.
You would also need passenger screening upgrades to be paid for as well. IIRC that may have been why QFlink only used the Dash 8-200 on WOL-MEL. No screening facilities at Wollongong, but arriving passengers screened at Melbourne.

I just did a quick add up of the northern Shoalhaven City (between Sussex Inlet and Berry) and it comes to about 82000 people which Albatross (NOA) could easily serve. A lot of holiday areas as well that double in size in summer.

 

[AIRwin]

Surprising they didn't manage to get a barb in there about "our staff being fully vaccinated 2 weeks before Qantas" (or some other whinge!)

Rex has announced that they are the first airline in Australia with all their frontline staff on duty fully vaccinated.

 

[henrus]

Rex has announced that they are the first airline in Australia with all their frontline staff on duty fully vaccinated.

Perhaps I'm reading into this too much but saying they're at 100% vaccinated on duty is different to 100% of frontline staff.

Previously they'd said that from 1 November all front line staff must be vaccinated or they'll be taken off the front line. Those vaccinated would be offered non customer facing roles where available:

Rex frontline staff must be vaccinated by November

Rex has today announced that all of the airline's customer-facing staff must be fully vaccinated against COVID-19 by...

www.queenslandcountrylife.com.au

Call me cynical but I wonder if some staff have refused and are therefore not on duty any more just to meet their 1 November target. The press release said that 93% across the company has had at least one jab so I wonder if this means up to 7% have refused?