REX Financially Secure?

Melburnian1 said:
So far the sharemarket likes Rex's mooted expansion.

I am yet to be convinced it'll be sustainable or profitable, as I vaguely remember the Compass Mk I and II days, although have long forgotten what exactly led to each's demise. History may not perfectly repeat, but it can be somewhat of a guide. It suggests the survival of 'the third airline' is unlikely. More recently, VA 1.0 never made money, and QF's finances are questionable according to our man RAM.

However, Rex might surprise with foreign-owned VA 2.0 the casualty. I wonder if Bain thought it would have the depressed demand 'semi-post-COVID trading environment' it and other airlines face?
Click to expand...

I think we should get our resident AFF consultant to chip into this thread for some commentary, probably knows a great deal more than all of us combined including the poster you quote who seems to just post very very long conspiracy theories ;)
 
An independent expert hired to consider Rex's financing for its commencement of intercapital flights has concluded that the transaction is 'not fair, but reasonable' for shareholders (of which I am not one). I don't hold any airline shares.

Part of the consultant's report says:

'...The Independent Expert's Report concludes that the Proposed Transaction is "not fair but reasonable" to Shareholders not associated with the Proposed Transaction, in the absence of a superior proposal. This is on the basis that:  the fair market value of a Share after the Proposed Transaction (assessed as being $1.55 to $1.75) is less than the fair market value of a Share before the Proposed Transaction (assessed as being $1.97 to $2.30), so it is not fair; but  the advantages of the Proposed Transaction outweigh the potential disadvantages, so that it is reasonable...'

This matter will be considered at Rex's AGM in the second half of January. Directors are recommending a vote in favour.
 
Virgin have Flight Centre in their corner.
Not sure why Rex are even bothering, I guess they received some government money let’s piss it up the wall.
 
Well Bundy Bear i think it will help REX get loads on their regional flights. We have been shareholders since the company floated. The bush towns need Rex and they should do much better than Tiger and other failures.
 
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So not fair only because Rex's share price has increased from $1-1.50.

Don't think Virgin having Flight Centre in their corner (offices in the same building) means much. Travel agents pretty minimal involvement in most domestic travel these days, and for corporate contracts BFOD or preferred provider is what matters.
 
Rex has downgraded its profit guidance from breakeven to a statutory loss of $18m for FY21...
 
Rex has just posted a statutory profit after-tax loss of AU$7.2 million in 12 months to June 30. The underlying loss after tax is
AU$18.4 million. Also an interesting piece by Bridget Carter in The Oz today speculating on possible Bain Capital interest in Rex. Improbable but raises interesting possibilities. VA and Rex joining forces last year was a lost opportunity.

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Hold on - if you ran a business, wouldnt you do the same?

Running one myself, I can say wholeheartedly, we couldn’t survive without govt $…
 
Net loss $36.7 million for first half of the 2021-22 financial year.

Losses ballooning.

Whatever possessed this company to enter into the 'mainstream' routes in Oz ie beyond me, although it's doing better on leisure routes than say SYD-MEL. However 'better' doesn't mean 'profitable'.
 
Melburnian1 said:
Net loss $36.7 million for first half of the 2021-22 financial year.

Losses ballooning.

Whatever possessed this company to enter into the 'mainstream' routes in Oz ie beyond me, although it's doing better on leisure routes than say SYD-MEL. However 'better' doesn't mean 'profitable'.
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Is this proportionate to QF's loss, given size of assets and debts both companies have (I haven't looked at balance sheets, although QF market cap is about 63x that of Rex)? Rex's loss is about 1/35th of the loss QF has reported ...
 
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Andrew Curran said:
Rex has just posted a statutory profit after-tax loss of AU$7.2 million in 12 months to June 30. The underlying loss after tax is
AU$18.4 million. Also an interesting piece by Bridget Carter in The Oz today speculating on possible Bain Capital interest in Rex. Improbable but raises interesting possibilities. VA and Rex joining forces last year was a lost opportunity.

View attachment 256921
Click to expand...

The only way Rex or VA2 will get close to being a competitor of any consequence to the QF group will be to merge, or for one to buy the other out.
 
dajop said:
Is this proportionate to QF's loss, given size of assets and debts both companies have (I haven't looked at balance sheets, although QF market cap is about 63x that of Rex)? Rex's loss is about 1/35th of the loss QF has reported ...
Click to expand...

QF's net tangible assets are now either zero or very close to that, as it sold various assets like land and terminals over the years. Its borrowings are immense.

Others will be better at examining balance sheets in detail.
 
Members of the Rex Group
REGIONAL EXPRESS HOLDINGS LTD 24 OCTOBER 2022
ASX RELEASE
REX ANNOUNCES PROFITABLE DOMESTIC OPERATIONS FOR SEPTEMBER
Rex Airlines today announced that its domestic jet operations had swung into profitability for
the month of September, the first time since resuming operations in February 2022.

Rex Executive Chairman, Lim Kim Hai said, “Rex’s domestic jet operations only properly
started in the month of February this year because of the shutdowns in 2021 due to COVID.
To turn in a profit so soon after the restart of operations is truly unprecedented in the airline
world.”

“This result was foreshadowed in our media release of 24 June 2022 when we predicted that
the agreements with corporates and travel agencies, finalised at the tail end of the prior
Financial Year (FY), would very quickly translate into strong passenger and revenue growth.”

“True to form, our domestic jet network passenger numbers for the first three months of this
FY grew by 60%, 34% and 77% respectively when compared to June 2022.”
“Revenue growth has been even stronger at 84%, 47%, and 137% for the same three months,
suggesting significant yield improvements.”

“The Board gave guidance on 2 August 2022 that it expected FY 2023 to be profitable overall
and the current results has further strengthened its conviction. Encouragingly, October 2022
appears to be even stronger than September 2022, with passenger numbers on the jet
network 16% higher for the first half of the month when compared with the previous month
while revenue increased 35% on 13% more flying.”

“In response to the strong demand, we are actively looking for another two Boeing 737-800NG
aircraft to expand our domestic jet services.”
 
Good news for their sustainability, no doubt the school holidays and peak travel demand helped them in September.
 

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