Rex to fly between Australian capital cities

[Carrots]

In the AFR today

Interesting that he talks about Adelaide - Brisbane.

QF Mainline have been operating quite consistently with the Alliance E190s and VA have been using Alliance Fokkers on the route as well as their 737-700s (they have done this for a while with their previous 700s rather than the potential new all economy configured birds).

Add Jetstar to the list and between the three you'd imagine it's a quite saturated market already., especially if QF and VA switch back to 737 (assuming there are birds available).

 

[Saab34]

I believe Tiger tried ADL-BNE but pulled due to low demand. Perhaps ADL-OOL might be a goer.

 

[Must...Fly!]

Yet they continue to ignore Perth.

Leasing airframes by the hour instead of fixed payments simply must have changed the economics.

 

[MEL_Traveller]

Yet they continue to ignore Perth.

Leasing airframes by the hour instead of fixed payments simply must have changed the economics.

If it is by the hour then their short haul income from seats would far outweigh anything they could charge for PER… $349 for 90 mins business class to sydney from MEL/BNE would equate to $900 or so each way to PER? That wouldn’t be vfm IMO.

 

[BRIS_VA_HAWK]

Yet they continue to ignore Perth.

Leasing airframes by the hour instead of fixed payments simply must have changed the economics.

Considering the small number of frames they have, going to PER doesn't make sense, as if it goes south their recovery options are limited. There's also the cost opportunity lost by flying SYD-PER rather than multiple SYD-MEL or SYD-OOL or SYD-BNE in that same time period.
Both VA & QF have the flexibility in their numbers to be able to make it work. REX, not yet.

 

[Must...Fly!]

Considering the small number of frames they have, going to PER doesn't make sense, as if it goes south their recovery options are limited. There's also the cost opportunity lost by flying SYD-PER rather than multiple SYD-MEL or SYD-OOL or SYD-BNE in that same time period.
Both VA & QF have the flexibility in their numbers to be able to make it work. REX, not yet.

There is no opportunity cost flying to/from Perth instead of eastern coast pairs, fly back of the clock like every other new carrier has done.

As for the recovery options, well, one might argue they have limited options as it is on current routes with such a small fleet. Point being - it's not an economic (or reasonable) argument against flying a profitable route, there is obviously something financial stopping them. MEL-PER in particular is very very popular and has been since the borders opened basically.

 

[MEL_Traveller]

Maybe night time ops are the issue? Crew, crew rest... doesn't necessarily fit in with day time ops where crew get 8 or 10 hours rest in their own home and at their own expense!

 

[Must...Fly!]

Maybe night time ops are the issue? Crew, crew rest... doesn't necessarily fit in with day time ops where crew get 8 or 10 hours rest in their own home and at their own expense!

Not a problem for any other airline. Unless there is some unique clause in the Rex EBA.

 

[MEL_Traveller]

Not a problem for any other airline. Unless there is some unique clause in the Rex EBA.

Not so much an EBA issue, but hotels, additional crew, rest hours, etc. Compared to the possible returns I wonder if that’s why it might not be viable? For a week’s business trip to Perth 23-27 January VA is charging $2500 return, QF leads in at $4221, rising up from there.

How much could Rex actually charge?

 

[BRIS_VA_HAWK]

How much could Rex actually charge?

You would think that they'd look to either match or beat VA in that space, so $1200-1300 each way?

 

[Quickstatus]

$1200-1300 each way

I reckon they would make more overall on the shorter routes

 

[MEL_Traveller]

You would think that they'd look to either match or beat VA in that space, so $1200-1300 each way?

VA is $1250 each way. With rex's quite limited service on board, and limited lounge offering, I can't see how you could pay more than 7 or 800 one way. Even that would be a stretch unless they upgraded their beverage service and got some sort of frequent Flyer program.

 

[oz_mark]

Yet they continue to ignore Perth.

Leasing airframes by the hour instead of fixed payments simply must have changed the economics.

I'm sure Perth is on their radar, but do you want them flying to Perth because you want to fly them, or because you want VA to reduce their prices?

 

[Saab34]

I don’t think I could pay Rex $2k return for a flight. I dunno, just feels wrong.

 

[PineappleSkip]

I'm sure Perth is on their radar, but do you want them flying to Perth because you want to fly them, or because you want VA to reduce their prices?

Both. And QF to reduce their prices too please!

 

[BRIS_VA_HAWK]

Both. And QF to reduce their prices too please!

Good luck with that last bit...

 

[PineappleSkip]

The stuff that dreams are made of!

 

[MEL_Traveller]

My final - planned - flight on Rex yesterday, MEL to SYD. I think there were two pre-paid business class and the rest might have been ‘bid upgrade’? The cabin went out 6/8, spare seat beside me and the other payee (or at least i think that was the case).

Total of the plane was 134. Surprising given VA and QF were pretty much sold out and QF Y was more expensive than ZL J.

Apparently we got the new meal rotation… salad of broccoli, goats cheese and sunflower seeds or a frittata with broiled mushrooms and cherry tomatoes.

Not two of ZL’s best meals. Dunno why they ditched the cheese plate.

Anyway this time they were catered at least 6/8 for the hot meal, as everyone had the same thing. I asked for a second pop and tried the salad as well.

The crew were amazing! Addressed everyone by name without a manifest or cheat sheet in front of them. Engaged with everyone in the cabin asking interesting questions.

And apparently the trick to drinkable coffee is to ‘ask for a double’. They use maccona sachets in J and usually put one in per cup. With two it was passable and at least did the job of waking me up a bit.

The lounge prior to departure was disappointing… *very* basic snacks and no fresh sarnies. I’d probably save the shoe leather and stay in the main concourse.

 

[Melburnian1]

My final - planned - flight on Rex yesterday, MEL to SYD. I think there were two pre-paid business class and the rest might have been ‘bid upgrade’? The cabin went out 6/8, spare seat beside me and the other payee (or at least i think that was the case).

Total of the plane was 134. Surprising given VA and QF were pretty much sold out and QF Y was more expensive than ZL J.

I don't find it 'surprising' because I recently informed, separately, a relative and a friend, both Melbourne residents, and their answer was 'we've not heard of Rex'.

That's its biggest problem. One other friend I previously informed has used it, and another who found out for himself says it's become his main domestic airline, as it's quite good and almost always cheaper than Qantas or Virgin Oz. He doesn't want to ever fly JQd.

Nonetheless despite lack of name recognition among many prospective travellers, ZL isn't carrying too many jet loads of just 10 or 15, so that's a positive.

 

[MEL_Traveller]

I don't find it 'surprising' because I recently informed, separately, a relative and a friend, both Melbourne residents, and their answer was 'we've not heard of Rex'.

That's its biggest problem. One other friend I previously informed has used it, and another who found out for himself says it's become his main domestic airline, as it's quite good and almost always cheaper than Qantas or Virgin Oz. He doesn't want to ever fly JQd.

Nonetheless despite lack of name recognition among many prospective travellers, ZL isn't carrying too many jet loads of just 10 or 15, so that's a positive.

Yeah. There’s been a marked increase in loads since my first flight with them back in July or whatever. Good for Rex overall. But I moved carriers because if it!