Qantas joins Virgin in criticism of Rex using government aid to fuel growth

[MyAustralia]

Well Rex predictably sent out an angry press release late last night to "correct misinformation stated by Qantas":

I read the the bailout money was for regional services & the $200m Rex is getting is from mortgaging or providing security, in form of much of their fleet of 50 or more Saab 340s.

So bailout money is not connected to funds to take on Virgin/Qantas. Hope Rex does well on golden triangle. It should with much lower costs.

Some Qantas fares are insane in peak hour. eg. SYD/MEL/SYD same day booked less than a week out often costs $1000 or more. Can fly to USA in January school holidays on a better airline for $800 & even less for kids.

100% Agree. At least now wil be able to travel and connex online. No loss of fares if Rex to Rex. Simple. We need a carrier to comnex to regional destos. Also Rex fares ate much more flexible. I.e Rex net , up to 12 hrs van chamge for fee and whatever fare is.

 

[MyAustralia]

100% Agree. At least now wil be able to travel and connex online. No loss of fares if Rex to Rex. Simple. We need a carrier to comnex to regional destos. Also Rex fares ate much more flexible. I.e Rex net , up to 12 hrs van chamge for fee and whatever fare is.

Sorry for typos. Just did it fast as a passion for Rex without looking at my text.

 

[Mattg]

Sorry for typos. Just did it fast as a passion for Rex without looking at my text.

You can edit your post for up to 24 hours by clicking on the "edit" button in the bottom left-hand corner of the post, in between "report" and "delete".

 

[ajw373]

I read the the bailout money was for regional services & the $200m Rex is getting is from mortgaging or providing security, in form of much of their fleet of 50 or more Saab 340s.

So bailout money is not connected to funds to take on Virgin/Qantas. Hope Rex does well on golden triangle. It should with much lower costs.

That may well be the case, but if they didn't receive the 'bailout' money they would have had to mortgage their fleet to keep running, just like airlines like Qantas have done. So a tad hard to separate the two like that.

 

[jakeseven7]

REX CLOSES IN ON $150M TO FLY SYDNEY-MELBOURNE-BRISBANE, ATTACK WEAKENED VIRGIN


Rex has revealed it is in advanced negotiations with an APAC investment firm to secure $150 million so it can launch flights between Sydney, Melbourne and Brisbane in March next year.

The deal would see PAG Asia Capital initially invest $50 million in secured convertible notes that could allow it to hold 23 per cent of Rex’s shares by December.

Rex’s executive chairman, Lim Kim Hai, said, “With PAG’s support, I have every reason to believe that Rex can successfully launch its domestic major city jet operations.”

After the initial investment, the regional carrier would then be able to draw down the remaining $100 million over three years, which would see PAG then hold 48 per cent of the business.

In May, the airline announced its ambitious plans to take on Qantas and Virgin by expanding its network to service Australian capital city routes, including the coveted Golden Triangle – between Melbourne, Sydney and Brisbane.

Rex closes in on $150m to fly Sydney-Melbourne-Brisbane

Rex has revealed it’s in advanced negotiations with an APAC investment firm to secure $150 million so it can fly between Sydney, Melbourne and Brisbane.

australianaviation.com.au

 

[HS-TQE]

Very rich that the government is happy to subsise one Singaporean owned airline but not another...

Suspect more to do with the other airline that was previously 20% owned by that Singaporean entity was majority owned (56%) by the firm owned by the Singapore Government, whereas REX was owned by a 'private' Singaporean firm/businessmen.

Pretty sure the government awareness of the former's previous two failed attempts in Australia through their stake in Air New Zealand (which wholly-owned Ansett Australia at the time) and Tiger Airways Australia may potentially had played a factor.

 

[dajop]

Suspect more to do with the other airline that was previously 20% owned by that Singaporean entity was majority owned (56%) by the firm owned by the Singapore Government, whereas REX was owned by a 'private' Singaporean firm/businessmen.

Also worth noting both airlines have received "subsidies" from the government, although VA received a much smaller amount as a proportion of pre-COVID revenue (Rex ~ $97m, VA ~ $78m, and QF ~ $141m)

 

[ajw373]

Suspect more to do with the other airline that was previously 20% owned by that Singaporean entity was majority owned (56%) by the firm owned by the Singapore Government, whereas REX was owned by a 'private' Singaporean firm/businessmen.

I suspect it is more to do with a one John Sharp. One time Nationals member in the house of Reps, one time Minister for Transport and current Deputy Chair of Rex.

Other than the subsidies offered to continue flying regional routes under COVID they should not receive a single cent unless all other players get the same.

 

[flydoc]

The public spat continues...

In an announcement to the ASX today, REX accuses Qantas of predatory behaviour for muscling in on 8 historically low traffic regional routes ex SYD, MEL and ADL and calls on the ACCC to intervene.

REX further says it will withdraw from 5 routes it claims are unviable but will fill the gap left by VA on SYD-CFS & SYD-POQ, and also likely commence ops MEL-DPO (currently QF serviced) and SYD-CBR.

Too timepoor to log all the detail right now but more at
https://www.asx.com.au/asxpdf/20210222/pdf/44swzxwb5w14h8.pdf

 

[drron]

If I work in Burnie I ask to be flown into DPO on QF and a crash 8 rather than BWT and a battered Saab.If Rex do fly MEL-DPO I will still forgo the batter.

 

[dajop]

.If Rex do fly MEL-DPO I will still forgo the batter.

You don't want a Saab fritter? (sorry belongs a different thread)

 

[drron]

You don't want a Saab fritter? (sorry belongs a different thread)

I actually call their planes battered sabs.

 

[OZDUCK]

I flew on the Saab back in the early 1990's and thought they were pretty good - well compared to a Metroliner anyway. I gather not much interior refurbishment has happened since then?

 

[Jacques Vert]

REX further says it will withdraw from 5 routes it claims are unviable but will fill the gap left by VA on SYD-CFS & SYD-POQ, and also likely commence ops MEL-DPO (currently QF serviced) and SYD-CBR.

Around 10+ years ago, Virgin were running 3 flights per day SYD-CFS-SYD; now it's down to 4 flights per week!

Meanwhile, QL have added/upgraded to a 717 on one flight per day during school holidays, added MEL-CFS-MEL daily (used to be done by Tiger 4 times per week) and BNE-CFS-BNE 4 times per week.

And now REX wants to get a slice of the pie.

Not sure how this is going to end but, as a resident of CFS, I'm hoping REX may bring some more price competition.

BTW, I'm not surprised REX are pulling out of Grafton. In additon to the spat they had with a local councillor, the pax numbers aren't pretty. Many people from Grafton drive to CFS to catch a flight (especially since improvements to the Pacific Highway) to take advantage of better frequency of service, better pricing, etc.