Rex accuses Qantas of predatory behaviour, withdraws from routes

Harrison_133

Member
Joined
May 5, 2021
Posts
147
https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4

Link to the financial report.
Anyone up for another round of bingo? ;)
Looks like we got a few hits. They of course have a nice little paragraph about Qantas being anti-competitive and trying to ‘intimidate’ Rex on ‘marginal’ regional routes.

Two notable things:
- Average LF for 1H FY 2022 was 53.4%. Obviously Saab & 737 flying is mixed, but it would be interesting to see what the figure would be split.
- They’ve used $75m of their loan from PAG for the jet ops already.

Whatever happened to Rex's lawyers, anyway?
“Exploring all legal avenues.”
Still? Are they realising they don’t have much of a case…. And John has been awfully quiet with the anti-QF rhetoric of late. Have Rex finally discovered it doesn’t cut through to the general public?
 
Joined
Jun 25, 2021
Posts
43
That's the briefing time. Good on it for having an in-premises attendee option, not just a virtual meeting.

Most ASX-listed companies release such results to the market between 0830 and 1000 AEDT (or AEST in 'normal' time).

That in-premises site (a Mascot hotel) is owned by the Singaporean Chairman of Rex, so it's all keeping it in the family, so to speak.
 

Must...Fly!

Senior Member
Joined
Jan 12, 2010
Posts
7,370
Qantas
Gold
Virgin
Platinum

Jacques Vert

Established Member
Joined
Jun 24, 2008
Posts
3,649
Qantas
Gold
Virgin
Red
That press release states Rex "do not have the balance sheet to lose money indefinitely". If that's the case, it doesn't bode well for the Jet services. I hope Rex survives and to do so I think they need to get rid of Sharp.
 
Last edited:

dajop

Enthusiast
Joined
Jul 1, 2002
Posts
13,542
And Bonza think they can do better without any Regional feed? Good luck...

❓

Don't understand this statement. Bonza is doing something completely different to Rex, and only looking at regional markets and assiduously trying to avoid direct competition on non-stops with any of the other carriers (with a few exceptions).
 

henrus

Established Member
Joined
Jun 23, 2016
Posts
2,062
Qantas
Gold
Virgin
Gold
Ok credit where credits due... at least rex has a website that you can book on. I think we're not giving QF/JQ/VA/ZL enough credit for that.
 

jakeseven7

Enthusiast
Joined
Sep 9, 2005
Posts
10,243

That press release is a free breakfast for QF’s lawyers. Expect a lawsuit (or a very stern legal letter) arriving at Rexy land HQ soon…
 

Virgin Bart

Established Member
Joined
Nov 19, 2011
Posts
1,421
I do wonder why all the Rex bashing around there sometimes. Isn't it very clear that Qantas are using their deep pockets to drive Rex out from routes only they've serviced for years?
 

jase05

Established Member
Joined
Jan 24, 2018
Posts
4,984
Qantas
Gold
Virgin
Platinum
I do wonder why all the Rex bashing around there sometimes. Isn't it very clear that Qantas are using their deep pockets to drive Rex out from routes only they've serviced for years?
Maybe if Rex had stuck to that and not got into the jet game things might be different
 
Sponsored Post

Struggling to use your Frequent Flyer Points?

Award Flight Assist takes the hard work out of finding award availability and redeeming your frequent flyer or credit card points for flights.

Using their expert knowledge and specialised tools, the Award Flight Assist team at Frequent Flyer Solutions will help you book a great trip that maximises the value for your points.

dajop

Enthusiast
Joined
Jul 1, 2002
Posts
13,542
I do wonder why all the Rex bashing around there sometimes. Isn't it very clear that Qantas are using their deep pockets to drive Rex out from routes only they've serviced for years?

It's not AFF unless you're criticising someone! But from what you say, it is pretty clear what Qantas are doing.

I guess the question is did "Rex kick and own goal" or did they "poke the bear"? Would QF have entered these routes had Rex not started Jet services in direct competition with QF? We won't know.

I wonder with the aircraft not being used for MEL-ABX, are there are other routes Rex could look at, for example, BXG-ADL? Or is this exit just an excuse for aircraft needed elsewhere already?
 

Virgin Bart

Established Member
Joined
Nov 19, 2011
Posts
1,421
Fair points about Rex's foray into jets. Hadn't thought of that.

It's almost made me feel uncomfortable when I hear announcement after annoucement by QF which pretty much ticks off route after route of ZL's.
 

muppet

Established Member
Joined
Jun 19, 2010
Posts
1,238
Qantas
Platinum
❓

Don't understand this statement. Bonza is doing something completely different to Rex, and only looking at regional markets and assiduously trying to avoid direct competition on non-stops with any of the other carriers (with a few exceptions).
agreed. Bonza is creating new markets, not trying to pick at the dead carcass of existing flooded markets.
 

muppet

Established Member
Joined
Jun 19, 2010
Posts
1,238
Qantas
Platinum
<snip>

I guess the question is did "Rex kick and own goal" or did they "poke the bear"? Would QF have entered these routes had Rex not started Jet services in direct competition with QF? We won't know.

</snip>

I think the answer is very most probably yes, the rona set about a situation where QF has no better use for a bunch of its Q300 fleet. It would have happened anyway, but Rex would have been better placed to compete if it didn’t sink $100m clams into a losing jet operation. (Which personally I love because paying pre-rona economy fares to fly VA business is great!)

Rex has never wanted to compete regionally, and when competition arrives, everyone jumps at the opportunity to fly with an airline with a frequent flier program, connections to …. well everywhere, and a lounge on the way home.
 

jakeseven7

Enthusiast
Joined
Sep 9, 2005
Posts
10,243
Fair points about Rex's foray into jets. Hadn't thought of that.

It's almost made me feel uncomfortable when I hear announcement after annoucement by QF which pretty much ticks off route after route of ZL's.

There was a really interesting analysis of this by an analyst on ABC News Radio the other morning which I thought I would share.

Basically she was suggesting it is in QF’s interest to keep both Rexy and VA2 around - because they are both attacking the same lower end customer and keeping each other weakened / as VA2 has to keep matching and discounting to Rexys low fares, which is degrading VA2’s margin and Rexy has to keep discounting to try and drive traffic on their flights.

It was quite an interesting take that makes sense.

While Rexy is flopping around burning money they won’t be able to afford to maintain all their regional routes which will kick more customers QF’s way - who can fly profitably at lower loads.

And while VA2 is forced to fend off Rexy by massive ongoing discounting they are stunning their ability to grow / become viable for sale again because they are so marginal, while QF continues to pull all the premium, business and corporate higher yielding passengers.

I guess the thing that will determine survival in the Rexy v Bain/VA2 death match is who has the deepest buckets of cash. Or if as many have suggested cooler heads prevail and the two join forces.
 
Joined
Mar 3, 2010
Posts
160
Qantas
Gold
Virgin
Red
There was a really interesting analysis of this by an analyst on ABC News Radio the other morning which I thought I would share.

Basically she was suggesting it is in QF’s interest to keep both Rexy and VA2 around - because they are both attacking the same lower end customer and keeping each other weakened / as VA2 has to keep matching and discounting to Rexys low fares, which is degrading VA2’s margin and Rexy has to keep discounting to try and drive traffic on their flights.

It was quite an interesting take that makes sense.

While Rexy is flopping around burning money they won’t be able to afford to maintain all their regional routes which will kick more customers QF’s way - who can fly profitably at lower loads.

And while VA2 is forced to fend off Rexy by massive ongoing discounting they are stunning their ability to grow / become viable for sale again because they are so marginal, while QF continues to pull all the premium, business and corporate higher yielding passengers.

I guess the thing that will determine survival in the Rexy v Bain/VA2 death match is who has the deepest buckets of cash. Or if as many have suggested cooler heads prevail and the two join forces.
The slight fly in that ointment for QF is that previously loyal QF flyers (such as yours truly) are looking at the QF fare premium and questioning the ongoing value proposition. Especially when
A) QF has been doing all it can of late to degrade the customer experience; and
B) J fares on VA can be had for not dissimilar rates to some Red-e fares on QF if you’re flying at certain times of the day or week
 

BAM1748

Senior Member
Joined
Jul 22, 2008
Posts
6,160
I think the answer is very most probably yes, the rona set about a situation where QF has no better use for a bunch of its Q300 fleet. It would have happened anyway, but Rex would have been better placed to compete if it didn’t sink $100m clams into a losing jet operation. (Which personally I love because paying pre-rona economy fares to fly VA business is great!)

Rex has never wanted to compete regionally, and when competition arrives, everyone jumps at the opportunity to fly with an airline with a frequent flier program, connections to …. well everywhere, and a lounge on the way home.

I think spot on, QF using excess aircraft to cover new routes. REX wants to compete against private car use not other airlines.
 

jakeseven7

Enthusiast
Joined
Sep 9, 2005
Posts
10,243
The slight fly in that ointment for QF is that previously loyal QF flyers (such as yours truly) are looking at the QF fare premium

Most of QF's premium / business / corporate customers, the ones that contribute to their yield are not really that concerned about $50 retail rate differences here or there was the argument. Which from my experience is very true.
 

Enhance your AFF viewing experience!

From just $6 we'll remove all advertisements so that you can enjoy a cleaner and uninterupted viewing experience.

And you'll be supporting us so that we can continue to provide this valuable resource :)


Sample AFF with no advertisements? More..
Top