Rex to fly between Australian capital cities

[dajop]

I took up the challenge. On a random date, Tuesday 2 March 2021 - deliberately chosen because I guessed Monday would cost more and to ensure that one couldn't say that the booking was close to today's date when it's normal for airlines to bump up fares - the single (one way) fare was A$445.40. Monday was a heartstopping one way fare ex SYD of $698.40, while the cheapest was We/Th with each showing $406.90.

..

Rex really knows how to play Monopoly. Once or twice recently QFd has cancelled its new flights to GFF or OAG, presumably due to lack of demand. These were previously Rex monopoly NSW intrastate routes.

Although I know another carrier, who on a particular monopoly route ex-SYD that is 15% less in distance than BHQ on a similar sized aircraft, where there even fewwer surface transport alternatives (i.e. functionally none), is not charging less than $546 one way over the next two months, and has some flights as expensive as $891 one way.

 

[jase05]

Yeah - sorry my mistake with BHQ and MQL, I think both are now operating again but MQL airport is actually in VIC so may have had issues with flights to and from ADL especially the BHQ tag flights last year, similarly with BHQ in NSW but looks like they are operating again now. If you want to give yourself a heart attack - take a look at the typical prices for flights between SYD and BHQ at the moment.

ADL-BHQ has run pretty much right through the pandemic albeit down to 2 days per week at one stage. We were feeding all our airfreight through them from Australia wide

 

[Melburnian1]

Although I know another carrier, who on a particular monopoly route ex-SYD that is 15% less in distance than BHQ on a similar sized aircraft, where there even fewwer surface transport alternatives (i.e. functionally none), is not charging less than $546 one way over the next two months, and has some flights as expensive as $891 one way.

I looked up airlines such as Link, Fly Corporate et al on routes such as SYD to Cobar (which has a surface transport alternative by train then coach from DBO) and to Biloela, Qld that is too far. MRZ and Narrabri have p/t alternatives and so does SYD - MQL. SYD - WTB was cheaper than what you said even though it involves QFd via BNE at present I found. SYD - MIM has p/t by surface and is too few nautical miles.

Don't be shy. Let us know who and to where please hehe.

 

[PineappleSkip]

SYD - WTB was cheaper than what you said even though it involves QFd via BNE at present I found.

you can connect from BNE-WTB?

 

[dajop]

Don't be shy. Let us know who and to where please hehe.

OK, it isn't quite an apples vs apples comparison, as this is a route where the airline holds a true monopoly - and is the only form of transport (except if you have or charter your own boat).

SYD-LDH on QF!

Mind you, even though the cheapest cash fare is $546 in the next two months, if you wait until June you can get flights on certain days for 8000pt + $88, which some would value as little as $168.

 

[Matt_01]

If I have the need to fly I will give the MEL-SYD-MEL Rex ago. In the past I have given Compass and Ozjet ago but these airline went bust.

 

[Must...Fly!]

you can connect from BNE-WTB?

I think it's twice a week on Rex. Part of a longer journey around the country.

 

[PineappleSkip]

Ah, the milk run to ISA. Always wanted to do that one...

Cheers skip

 

[Virgin Bart]

Ah, the milk run to ISA. Always wanted to do that one...

Cheers skip

Same. Wonder if anyone here has?

 

[flydoc]

Ah, the milk run to ISA. Always wanted to do that one...

Cheers skip

Same. Wonder if anyone here has?

One recent report here:

Why Rex's Milk Run flight from Brisbane to Mt Isa beats a 'flight to nowhere'

You can fly from Sydney to Tokyo in the same time it takes to do a 'Milk Run' flight with seven tiny-town pitstops.

www.traveller.com.au

 

[jase05]

VH-RQC visited ADL this morning. Was here for about 40 minutes and had some photographers and staff milling around

 

[AIRwin]

$49 economy and $199 business in the Rex and the Cities sale:

Rex Airlines

rex.com.au

Wonder if those who paid the launch fare of $79 can get a refund and rebook?

 

[ANstar]

OK, it isn't quite an apples vs apples comparison, as this is a route where the airline holds a true monopoly - and is the only form of transport (except if you have or charter your own boat).

SYD-LDH on QF!

Mind you, even though the cheapest cash fare is $546 in the next two months, if you wait until June you can get flights on certain days for 8000pt + $88, which some would value as little as $168.

Only problem I have found is that the times I have been able to get award seats - there has been no accomodation on the island.

Post automatically merged: Feb 10, 2021

$49 economy and $199 business in the Rex and the Cities sale:

Rex Airlines

rex.com.au

Wonder if those who paid the launch fare of $79 can get a refund and rebook?

Virgin have now matched both Y and J sales.

 

[PineappleSkip]

If QF sells J tickets for $219, I'm in (borders permitting )
cheers skip

 

[AIRwin]

Virgin have now matched both Y and J sales.

March Match!

 

[henrus]

This isn't going to end well for someone and sadly I think it's going to be Rex.

Rex is betting on a single route which as of right now has very low passenger numbers. If VA or QF want to they can very easily move aircraft onto other routes that are experiencing higher demand. This gives them the flexibility to afford to cut prices and then also cut services at the last minute moving passengers onto flights at different times ensuring that aircraft fly full.

Everyone keeps saying that only two airlines will survive, Qantas is being big-headed (as per usual) claiming a spot for themselves however everyone seems to be forgetting that VA thanks to Bain has quite deep pockets right now.

 

[AIRwin]

Everyone keeps saying that only two airlines will survive, Qantas is being big-headed (as per usual) claiming a spot for themselves however everyone seems to be forgetting that VA thanks to Bain has quite deep pockets right now.

And lower costs?

 

[henrus]

And lower costs?

Yes although Rex is also starting from a low-cost base. Chances are they're paying the same as VA for the aircraft, crew etc so it's really just QF who's at the disadvantage in terms of costs. Perhaps it's been mentioned somewhere already but QF keeping the A380's, A330's, and B787's lying around must be costing something.

 

[moa999]

Bain may have funds, but PE firms very rarely reinvest in a company as typical playbook.

General playbook is to get cash back (dividends) through whatever means possible to increase IRR.

Best example of that would be Dick Smith. The PE firm launched a massive sale to clear warehouse and literally had its equity back within months. Then floated it a few years later for even more $$s (we won't mention what happened after that)

 

[jakeseven7]

This isn't going to end well for someone and sadly I think it's going to be Rex.

Rex is betting on a single route which as of right now has very low passenger numbers. If VA or QF want to they can very easily move aircraft onto other routes that are experiencing higher demand. This gives them the flexibility to afford to cut prices and then also cut services at the last minute moving passengers onto flights at different times ensuring that aircraft fly full.

Everyone keeps saying that only two airlines will survive, Qantas is being big-headed (as per usual) claiming a spot for themselves however everyone seems to be forgetting that VA thanks to Bain has quite deep pockets right now.

The operating entity of ‘VA2’ does not have deep pockets. They will still be losing money hand over fist.

If Bain wishes to prop up VA2 in a price war with Rex, Bain will be funding it. I can’t see them doing that for an extended period of time though...

But what choice do they have, Rex have public last declared their intent to gut VA2, there is very bad blood between the two companies still... it’s going to get messy....

I still think the best outcome would be Rex and VA2 merging no doubt after a mud slinging match that damages both of them of course....