Rex to fly between Australian capital cities

[dajop]

No way in the wide world AUS can sustain QF, JQ, VA, Rexy & Bonza.

The amount of $$$ that will be wasted/lost, once any take over happens there'll be lot of burnt $$$ to get to that point.

Not sure it's all about "sustaining" the different airlines? The ultimate goals of the PE$ is to shift those wasted to $$$ on to some poor sucker who has no clue, by getting in, tarting it up, getting out and making some money (and incidentally leave a trail of damage behind them). At least with the US PE firms behind VA and Bonza that would seem to be the case.

Not sure what the Singaporean PE firm, PAG is doing, they don't seem to be doing a lot to "tart up" Rex though. Quite the opposite.

 

[Harrison_133]

Not sure what the Singaporean PE firm, PAG is doing, they don't seem to be doing a lot to "tart up" Rex though. Quite the opposite.

Whatever they’re doing, they’re doubling down on their original 2020 plans despite the big fat problem of VA still being around. As much as John likes to preach about how good Rex’s growth is, it’s almost like they’re growing in hope passengers will suddenly appear. You’d think they’d re-adjust their plans to be a bit more modest. 30 jets in 5 years sounds very…ambitious for the fourth operator. Tiger only had 14 A320’s at the peak. With the Qantas Group being the size it is and VA hitting 100+ aircraft once the MAX 10’s arrive, it won’t get easier for Rex. For the sake of the communities, hopefully they’ve insulated their regional ops…

 

[HS-TQE]

Tiger Australia 1.0 had 10 aircraft at its peak back when they were wholly owned and operated by the SQ group. Oddly enough its peak was when it was under ownership of VA with 14 aircraft (including the handful of 738s for the ill-fated Bali ops, where VA/Borghetti embarrassingly filled out the wrong paperwork for Australia-Bali rights).

 

[Harrison_133]

Tiger Australia 1.0 had 10 aircraft at its peak back when they were wholly owned and operated by the SQ group. Oddly enough its peak was when it was under ownership of VA with 14 aircraft (including the handful of 738s for the ill-fated Bali ops, where VA/Borghetti embarrassingly filled out the wrong paperwork for Australia-Bali rights).

The A320 fleet peaked at 14 in 2015 when the last one was delivered. Then the total fleet peaked in 2016 at 18 aircraft (14 A320s and 4 737-800s). Then in 2018 some A320’s started to shift to VARA, not all replaced with a 737. If Tiger couldn’t get more than 18 aircraft to work in their 13 years of operation, what does Rex think they can do differently?

 

[Saab34]

If Tiger couldn’t get more than 18 aircraft to work in their 13 years of operation, what does Rex think they can do differently?

Tiger at least had no problems putting people in its aircraft with load factor averages high 80s. They had some good progress with being able to grow yield and passengers together. Tiger has management problems over a number of years which destroyed it (and Virgin), could have been done better however the end result would probably have been the same.

The comment above about a VA Jet inside a bullseye is laughable. Rex are waaaaaay out of their depth. In the small patches we have seen outside of lockdowns, VA was filling it’s Jets to Rex, at a ratio of 5:1.

 

[Mattg]

The comment above about a VA Jet inside a bullseye is laughable. Rex are waaaaaay out of their depth. In the small patches we have seen outside of lockdowns, VA was filling it’s Jets to Rex, at a ratio of 5:1.

I can just picture that investor meeting taking place out the back of the Birdsville pub.

(Nothing against Birdsville's pub - I'm sure it's great!)

 

[jakeseven7]

I can just picture that investor meeting taking place out the back of the Birdsville pub.

(Nothing against Birdsville's pub - I'm sure it's great!)

LOL, it was actually in Circular Quay

 

[Mattg]

Rex says its winning Qantas’ corporate travellers as airline fight heats up

Rex Airlines deputy chair John Sharp says the airline has signed up business travel contracts with “a number of very large corporate entities”.

www.smh.com.au

Um, yeah, OK.

 

[MooTime]

If Rexy is considering itself full service, I really fail to see how Virgin isn't full service! I know they consider themselves hybrid, just sayin'.

QF international service aside, there's very little difference between all 3. Lounges, destinations & aircraft type are it imo & thats to each pax requirements.

I don't think Mr Sharp is so sharp.

 

[Mattg]

If Rexy is considering itself full service, I really fail to see how Virgin isn't full service! I know they consider themselves hybrid, just sayin'.

QF international service aside, there's very little difference between all 3. Lounges, destinations & aircraft type are it imo & thats to each pax requirements.

I don't think Mr Sharp is so sharp.

Well, there is a big glaring difference between QF, VA and ZL - Rex doesn't have a frequent flyer program!

(The Rex lounges are also rubbish compared to Qantas and Virgin...)

 

[MooTime]

Well, there is a big glaring difference between QF, VA and ZL - Rex doesn't have a frequent flyer program!

(The Rex lounges are also rubbish compared to Qantas and Virgin...)

Yes of course my apologies.

VFF & QF rewards both very profitable & very engaging.

So true on lounges too. Great point.
Double digits ppl in Rexy lounge & beers chips & coffee beans exhausted.

 

[dajop]

I don't think Mr Sharp is so sharp.

Rex might be a bit better off if they cut him loose. Surely 24 years after leaving parliament his political influence, whatever he had to begin with, must be beginning to wane?

 

[AIRwin]

wane

Wane or whine?

 

[OZDUCK]

Rex might be a bit better off if they cut him loose. Surely 24 years after leaving parliament his political influence, whatever he had to begin with, must be beginning to wane?

According to Wikipedia "In 2000 Sharp became the Honorary Federal Treasurer of the National Party of Australia and still continues in that role." So he still might have some very good connections with the Agrarian Socialists.

 

[Melburnian1]

Rex might be a bit better off if they cut him loose. Surely 24 years after leaving parliament his political influence, whatever he had to begin with, must be beginning to wane?

You fail to understand the nature of politics, and especially after former MPs/Senators/MLCs have left the scene.

Connections are often maintained for life, or an extremely long time. That's why we see former Queensland ALP Premier Mr Beattie joining former Federal Liberal Treasurer Mr Hockey's consultancy.

 

[MooTime]

You fail to understand the nature of politics, and especially after former MPs/Senators/MLCs have left the scene.

Connections are often maintained for life, or an extremely long time. That's why we see former Queensland ALP Premier Mr Beattie joining former Federal Liberal Treasurer Mr Hockey's consultancy.

It could be said that it's the nature of work colleagues in general. People build relationships at their workplace forming connections & those connections can come in handy in future employment opportunities.

 

[Harrison_133]

Worth noting today marks 1 year of Rex’s 737 operations.

Given the bumpy start, it’s good to see some more expensive fares on a lot their routes over the next few weeks, which hopefully means things are starting to pick up and they’re getting bums on seats. MEL-SYD was particularly atrocious to begin but seems to be doing better. Friday-Sunday fares are regularly over $100, with the $79 tickets not as widely available.

 

[dajop]

You fail to understand the nature of politics, and especially after former MPs/Senators/MLCs have left the scene.

I understand, perhaps waning is not the right word, but his sphere of influence is more restricted - to regional matters (and the regional aviation market) - as you would expect from a National Party person. In terms of Rex, his influence - as far as the capital city market is concerned - does not seem to be quite as strong (but who knows). AJ with the help of his Chairmans Club seem to have that one cornered.

 

[Saab34]

Rex has definitely hiked fares.

Going back to early last decade the commentary from many airline bosses is much the same ie....we can’t make money with oil at such highs. The whole low cost carrier model is basically void. The premium players have those revenue streams to keep going.

Sadly Oil has just cracked the $110. Rex, Bonza and Jetstar will be in for some pain if this keeps going to $120-$140.

 

[dajop]

Rex has definitely hiked fares.

Going back to early last decade the commentary from many airline bosses is much the same ie....we can’t make money with oil at such highs. The whole low cost carrier model is basically void. The premium players have those revenue streams to keep going.

Sadly Oil has just cracked the $110. Rex, Bonza and Jetstar will be in for some pain if this keeps going to $120-$140.

You don't think Qantas and Virgin will be in pain too?

So many variables at play. Also, historically the AUD has risen in sync with the oil price, which has reduced the impact of rising oil prices for those carriers whose main income source is domestic (AUD) (still an impact of course). For example between the end of 2006 and peak in mid 2008 oil rose 130% (give or take) in USD, but in AUD terms it rose only - half about 65-70%. This time the AUD seems to be moving in the opposite direction though, so if that continues - will have the double whammy of higher leasing costs (in AUD terms) and this will also exacerbate the higher oil price.