Rex to fly between Australian capital cities

[dajop]

I also don't understand how they plan to make a profit by, as they claim they will do, offering a premium full-service experience at Jetstar prices.

I guess it depends on how low their cost structure is, what they're paying for the 737 leases, how much they will pay staff and ensuring they avoid building in excessive costs into the structure.

But agree they are most likely to be the casualty. It has never ended well for the 3rd player in the market, except for DJ when AN collapsed. Thinking Compass I and II, Ozjet, Tiger (when it was independent) etc... Perhaps the main difference is that they are already established in SYD and MEL, can leverage infrastructure and staff that already exists but is idle for part of the day.

 

[muppet]

.... Hope Rex stay well grounded (as in the "well balanced and sensible").....

Ummm “stay” well grounded .... you must be new to following this company.

.... well grounded is not how i’d describe it.

 

[Mattg]

I guess it depends on how low their cost structure is, what they're paying for the 737 leases, how much they will pay staff and ensuring they avoid building in excessive costs into the structure.

But agree they are most likely to be the casualty. It has never ended well for the 3rd player in the market, except for DJ when AN collapsed. Thinking Compass I and II, Ozjet, Tiger (when it was independent) etc... Perhaps the main difference is that they are already established in SYD and MEL, can leverage infrastructure and staff that already exists but is idle for part of the day.

I have heard that the 737 leases are at quite cheap rates (60k per month?), but only for the first 12 months. So there's that at least.

Ummm “stay” well grounded .... you must be new to following this company.

.... well grounded is not how i’d describe it.

By my count, they've had public fights with at least 13 airport operators (generally local councils) over the past few years. Frankly, they're bullies.

 

[dajop]

Ummm “stay” well grounded .... you must be new to following this company.

.... well grounded is not how i’d describe it.

By well grounded I did mean the brand .... not flashy, trendy like certain other companies in the Australian aviation space .... I've followed Rex since their beginning, and used to fly them a lot before I moved away.

 

[MEL_Traveller]

To date, Rex's business model seems to be flying monopoly regional routes and bullying the airport operators at those airports into giving them what they want. This won't work on the domestic trunk routes.

I also don't understand how they plan to make a profit by, as they claim they will do, offering a premium full-service experience at Jetstar prices.

Either Rex or VA won't survive this. I suspect Rex will be the casualty.

Dunno. Will be interesting to see.

They have cherry picked the prime trunk route. No debt. Cheap workforce. Cheap planes. Cheap fuel. Is tea/coffee/water really full service in terms of breaking the bank? It's very similar to USA domestic, but without the soft drinks (that would actually cost money). QFJd catering would be lucky to push $2.50 per person on average before alcohol. So there may not be a huge cost there, especially if they have some reasonable meal boxes (ironically probably more expensive).

They have an advantage with connecting passengers... one airline from the outback to the two major cities.

There's a lot to like about it. IIRC Tiger had pretty full planes? So there's arguably room for another carrier, just need to get the price point, customer service and reliability sorted.

 

[dajop]

By my count, they've had public fights with at least 13 airport operators (generally local councils) over the past few years. Frankly, they're bullies.

As opposed to airlines who ground their whole fleet to get what they want ....

 

[Mattg]

As opposed to airlines who ground their whole fleet to get what they want ....

In fairness to Qantas, I don't think they've ever withdrawn all flights from an airport because the airport refused their demand to pay $1,000 towards a 3-phase power outlet. (True story - that was Rex's justification for pulling out of Taree in 2017.)

 

[jakeseven7]

To date, Rex's business model seems to be flying monopoly regional routes and bullying the airport operators at those airports into giving them what they want. This won't work on the domestic trunk routes.

I also don't understand how they plan to make a profit by, as they claim they will do, offering a premium full-service experience at Jetstar prices.

Either Rex or VA won't survive this. I suspect Rex will be the casualty.

You would expect Bain/VA2 to have deeper pockets and be able to last longer that is for sure.

But REX probably has more brand support and is probably perceived to be more local / Australian at a time where supporting local and Australia is very very top of mind..... VA2 is well known to be 100% foreign now....

 

[Must...Fly!]

There's a lot to like about it. IIRC Tiger had pretty full planes? So there's arguably room for another carrier, just need to get the price point, customer service and reliability sorted.

They did, and they went belly up...twice....

 

[dajop]

In fairness to Qantas, I don't think they've ever withdrawn all flights from an airport because the airport refused their demand to pay $1,000 towards a 3-phase power outlet. (True story - that was Rex's justification for pulling out of Taree in 2017.)

Yeh, that one was particularly odd

https://www.rex.com.au/BlobViewer/BlobViewer.aspx?attachtype=MR&filename=6F566D4F573159434D514B6579314656624A4636304A5A315538697A57767031633666554C4E4A474B554B786C4E5770325259424A57636E357A316943325477

The curious thing about Rex is that they do this all so publicly. Many companies, particularly MNC,s screw over and bully their suppliers all the time....

 

[MEL_Traveller]

They did, and they went belly up...twice....

indeed. But I think they were too 'Ryanair' in their approach? Their reality tv show didn't help (fees for excess baggage, one second late for check-in and off-loaded, etc). Tiger didn't have a good reputation for punctuality. And I guess it didn't appeal to a broad enough market share?

I wouldn't fly Tiger, but I would fly $299/$399 business class to/from Sydney.

 

[dajop]

indeed. But I think they were too 'Ryanair' in their approach? Their reality tv show didn't help (fees for excess baggage, one second late for check-in and off-loaded, etc). Tiger didn't have a good reputation for punctuality. And I guess it didn't appeal to a broad enough market share?

I wouldn't fly Tiger, but I would fly $299/$399 business class to/from Sydney.

I am sure grounding for 5 weeks in 2011 did not help the Tiger brand either!

 

[Melburnian1]

In fairness to Qantas, I don't think they've ever withdrawn all flights from an airport because the airport refused their demand to pay $1,000 towards a 3-phase power outlet. (True story - that was Rex's justification for pulling out of Taree in 2017.)

At least Rex doesn't have a CEO who strays beyond his airline magnate into wokeness.

 

[Melburnian1]

While not the first to do this - defunct TT also did - ZL has added five minutes to gate-to-gate MEL to SYD northbound schedules, allowing a very generous 90 minutes.

It is timetabling departures at '00' so that means (at least) at many times of the day QF, VA 2.0 and ZL will be pretending they can all push back on the hour on the MEL - SYD route. Typically there may be other routes with flights 'on the hour' as well.

If I recall, some years back VA 1.0 tended to have departures at either '5' or '15' minutes past the hour but eventually abandoned that as it perceived this put it at a competitive disadvantage.

 

[Melburnian1]

indeed. But I think they were too 'Ryanair' in their approach? Their reality tv show didn't help (fees for excess baggage, one second late for check-in and off-loaded, etc). Tiger didn't have a good reputation for punctuality. And I guess it didn't appeal to a broad enough market share?

I wouldn't fly Tiger, but I would fly $299/$399 business class to/from Sydney.

Rex would also be well advised to stay away from the disastrous reality show that someone at TT must have believed was great publicity, but in cemented in many minds how TT was rigid and unfair in its approach to uniformed or 'vulnerable' passengers, the latter group including bogan families. It appeared as if the staff enjoyed harassing travellers. Nasty.

 

[Melburnian1]

I did a 'ghost' booking.

For Visa and Mastercard payments, Rex imposes not just a one per cent credit card fee but an identical fee for booking.

So a $79 one way MEL - SYD fare with seat selection an additional $10 becomes $89 plus the fees, so the total payable will be about $90.80. Travel insurance was available for $3.32 while having one's booking sent via SMS costs $2.40, the latter way in excess of what it would cost the airline.

 

[Melburnian1]

Was trying to think of a comparison of the sort of brand that Rex is like. In banking I'd say Bendigo Bank, in supermarkets, IGA. Not sure about other industries.

A good comparison except that IGA has three types of supermarkets (the small basic IGA Express that are not far off convenience stores, the mid range plain IGAs of which some are large, and the top shelf Supa IGAs that compete more with Woolies and Coles).

IGA emphasises 'how the locals like it' while Rex will stress its rural roots (and routes!)

 

[MEL_Traveller]

I did a 'ghost' booking.

For Visa and Mastercard payments, Rex imposes not just a one per cent credit card fee but an identical fee for booking.

So a $79 one way MEL - SYD fare with seat selection an additional $10 becomes $89 plus the fees, so the total payable will be about $90.80. Travel insurance was available for $3.32 while having one's booking sent via SMS costs $2.40, the latter way in excess of what it would cost the airline.

yeah I read about the credit card fees. Only way to avoid them is to get a ticket at the airport. I guess they have had plenty of time to confirm that is legal in terms of price representation.

 

[Melburnian1]

yeah I read about the credit card fees. Only way to avoid them is to get a ticket at the airport. I guess they have had plenty of time to confirm that is legal in terms of price representation.

Happy to be corrected but I don't believe with any airline one can still purchase at airports. Even if one could, do airlines still handle cash? Other organisations have used the virus as an excuse to discontinue this.

 

[MEL_Traveller]

Happy to be corrected but I don't believe with any airline one can still purchase at airports. Even if one could, do airlines still handle cash? Other organisations have used the virus as an excuse to discontinue this.

You'd think, but according to their fees and surcharges page: Fees and surcharges

* For cash payment at airport, no payment method surcharge is incurred.​

​

I guess you could also purchase through a travel agent who might not levy a CC surcharge... but that's a bit separate to advertising prices on the web.