Rex to fly between Australian capital cities

[BRIS_VA_HAWK]

Wow look at this mornings BNE-SYD load

For those of us who can't....what are we looking at?? Single digits, or somewhere near a darts score?? (180 for those who don't get the darts reference)

 

[Must...Fly!]

I don't have EF so unsure of the accuracy from other sources but surely the answer isn't three?!

 

[Saab34]

Economy 0
Biz 3.

You would just assume those 3 Y Pax got upgraded and left the back cabin closed.

 

[AIRwin]

Biz 3

1:1 service (even lavatory)

 

[Must...Fly!]

ZL9 this morning hardly much better.

Prime time SYD-MEL, assuming what I can see is correct, 20 passengers.

 

[AIRwin]

Even with 3 pax, the flight still departed late...

 

[jase05]

Only 1 ADL-MEL flight per day for the majority of the week and that’s at 1330 which isn’t great for a lot of travellers. Have been casually keeping an eye on loads if I’m out and about and ZL constantly seems to have only 20-40 Y pax, the VA flight 10 minutes later is normally packed.

 

[Saab34]

Melbourne to Brisbane is a fuel burner. Looks about 15 bods up and 20 back. Probably does not even pay for the airport charges

 

[Mattg]

Economy 0
Biz 3.

You would just assume those 3 Y Pax got upgraded and left the back cabin closed.

It's unbelievable that Rex is still operating near-empty flights over a year into their jet expansion, yet John Sharp keeps going on about how good the loads are and ordering more aircraft. The above screenshot does not look to me like evidence of a successful 737 experiment.

 

[Harrison_133]

It's unbelievable that Rex is still operating near-empty flights over a year into their jet expansion, yet John Sharp keeps going on about how good the loads are and ordering more aircraft. The above screenshot does not look to me like evidence of a successful 737 experiment.

I really don’t understand their rationale for bringing on extra jets when they can’t make the existing fleet work. John can preach to the choir as much as he likes, but they have serious issues if they can only get 20-30 pax on routes they fly once a day. For all their talk about growth, the only thing that doesn’t seem to be growing is Rex’s passenger base.

 

[alexczarn]

The side effect of only one flight a day, means customers, like me, are reluctant to jump across to them

 

[jase05]

I really don’t understand their rationale for bringing on extra jets when they can’t make the existing fleet work. John can preach to the choir as much as he likes, but they have serious issues if they can only get 20-30 pax on routes they fly once a day. For all their talk about growth, the only thing that doesn’t seem to be growing is Rex’s passenger base.

I guess they are in a bit of a holding pattern currently. They know they can’t grow without lounge upgrades and a FFP but by all reports the FFP is just around the corner. In the meantime they need to run a constant roster even if it’s at a loss. They can’t afford to be pulling services and cancelling flights whilst trying to build consumer confidence. If they offer a decent enough and reliable product they would be hoping that some will join up to their FFP and remain with them I’m guessing

 

[Must...Fly!]

I really don’t understand their rationale for bringing on extra jets when they can’t make the existing fleet work. John can preach to the choir as much as he likes, but they have serious issues if they can only get 20-30 pax on routes they fly once a day. For all their talk about growth, the only thing that doesn’t seem to be growing is Rex’s passenger base.

From memory the answers lie in the original announcement of the investment from PAG.

 

[Saab34]

I doubt a FF program and lounges will push all loads from 20-30 to a more consistent 150-180.

To be honest it’s not really going to make much difference.

The whole Jet operation was based around Virgin not returning. It has, and Jetstar has increased its share around Tiger markets, so begs the question, who exactly is the Rex 737 passenger? It’s like it’s a operation that just isn’t needed, or space does not exist for.

They really need to be a low cost carrier.

 

[Must...Fly!]

I doubt a FF program and lounges will push all loads from 20-30 to a more consistent 150-180.

To be honest it’s not really going to make much difference.

The whole Jet operation was based around Virgin not returning. It has, and Jetstar has increased its share around Tiger markets, so begs the question, who exactly is the Rex 737 passenger? It’s like it’s a operation that just isn’t needed, or space does not exist for.

They really need to be a low cost carrier.

Bonza will take the only niche that's left, really (assuming they take off...)

 

[BRIS_VA_HAWK]

I doubt a FF program and lounges will push all loads from 20-30 to a more consistent 150-180.

To be honest it’s not really going to make much difference.

The whole Jet operation was based around Virgin not returning. It has, and Jetstar has increased its share around Tiger markets, so begs the question, who exactly is the Rex 737 passenger? It’s like it’s a operation that just isn’t needed, or space does not exist for.

They really need to be a low cost carrier.

I thought that there was also the expectation of connecting travellers to/from REX's regional flights to also fatten out the jet service patronage.

I agree that REX was hoping that VA wouldn't survive administration, however I'd say there's an avenue for them to compete over the longer term...it's just going to take a while and I don't know if they have that ability funding-wise.

 

[HS-TQE]

The patience of the Singaporean consortium of owners (Businessmen & Private Equity's PAG) would also come into play here as well.

Another view is that they may put Plan B as positioning their RexJet arm as a takeover target for the other 2 Private Equity run rivals, although it's unlikely that 777 or Bain will be interested anytime soon.

 

[Saab34]

Another view is that they may put Plan B as positioning their RexJet arm as a takeover target for the other 2 Private Equity run rivals, although it's unlikely that 777 or Bain will be interested anytime soon.

Interesting and very complex point, however not exactly sure where the value lies. You wouldn't be buying it for its Sydney Slots, RexJet is using borrowed Sydney slots on a temporary basis. You wouldn't buy it for the fleet, you let it fall over and then let the desperate lessors come running to you for some low ball deal. Also complex matter with the employees, many are ex Virgin employees waiting a return date, I guess Virgin could save some crewing costs but that's about all.

You most certainly are not buying it for its current passenger base, market share.

I guess a New PE firm could buy it, would still be a hard sell if they are burning 50m-100m a year though. But they could rebrand it and lower fares almost right away, could change the revenue trajectory almost overnight.

 

[Scarlett]

75 pages in this thread and aside from the initial speculation and news on the startup, it’s pretty much the same story as it was when they started. Low loads and no profit. How long can they keep burning cash? And for what? It boggles my mind…

 

[Must...Fly!]

About 25 on ADL-MEL this afternoon. Similarly timed VA flight close to full.