Rex in voluntary administration, ending all 737 services

[MEL_Traveller]

How much of it is even slightly attractive? Surely you need a decent business case for any tender to work. I’d expect a route or two would be cherry picked, and the rest left to languish.

It’s still a tender, but for the lowest subsidy required to maintain the regional routes nobody wants. Many suburban rail networks, even some regional aren’t money making, it’s just a case of the lowest cost to run plus a fixed profit margin on top.

 

[Chicken]

How much of it is even slightly attractive? Surely you need a decent business case for any tender to work. I’d expect a route or two would be cherry picked, and the rest left to languish.

That's not how it works.

Think about bus services. A region is given to an operator, most routes and services would be loss making, bar maybe one or two which actually breaks even. The respective government would pay for the services (or timetable) to ensure the operator could still make a profit overall.

 

[anat0l]

I think it could have worked, they just had the wrong people running it.

They had a government propping them up, virtually no work to be done on the aircraft themselves and the praises of everyone saying thank goodness we have competition.

The free market once again shows even financial opinion is, ironically, worthless bluster.

Probably didn't help that they had an up-himself CEO who fervently believed his airline was  entitled to succeed, not that he actually needed to help earn that success.