Rex in voluntary administration, ending all 737 services

[ben95]

I agree those areas need them or an airline of some sort, even if Gov supported.

With the amount of money the gov needs to or is already pumping into Rex surely it’s better to see it go bust, then run a essential air service style competitive tendering process to subsides an operator to fill the gaps.

 

[Saab34]

With the amount of money the gov needs to or is already pumping into Rex surely it’s better to see it go bust, then run a essential air service style competitive tendering process to subsides an operator to fill the gaps.

Labor appear to be sticking to the whole ‘saving regional airline’ line.

I really don’t see the issue on a political front if they tender out Rex work.

I know all this nonsense is nothing but politics, but even throwing my political hat on for a moment, and thinking like a Labor MP, I don’t see how it will backfire on the Labor front if they offload the work to others, maintain the connections, work with those others to secure employment for those etc. They could be clever and actually dissolve Rex, but still maintain the regional connections, employees. But I think that’s just too much for them, the whole we are saving the regional airline thingy is obviously easier alongside taxpayer cash. Don’t really need the department to do anything but wire lines of cash out of Canberra.

 

[moa999]

really don’t see the issue on a political front if they tender out Rex work.

Think the main issue would be disruption.

Particularly whether there are enough suitable aircraft available and whether any operators would take on the risk of the Rex fleet.

 

[Ansett Nostalgic]

Albo is an ex Transport Minister and probably has a personal interest in this sort of stuff including a desire to not be seen as causing the regional airline to go out of business.

 

[ejb_nz]

The prime minister just doesn't want to be the PM when a regional airline goes broke.

It is all about optics.

 

[dajop]

Perhaps, rightly or wrongly, also there’s some sensitivity around a perception of free kicks to Qantas, given the media uproar around the QR capacity decision and Albo’s + 1 (at the time his son) getting CL access.

At the end of the day $30m is small change compared the widespread grift in the NDIS program. I do wonder how much is going to operate the airline and how much is going into the pockets of the administrators.

 

[moa999]

l wonder how much is going to operate the airline and how much is going into the pockets of the administrators.

I'm sure they are doing well on hourly rates.

 

[antycbr]

I'm sure they are doing well on hourly rates.

I guess we can’t separate the administration from the operations and contract the operations out? Having a big 4 accounting firm running an airline is expensive. The government really needs to draw a line under this and move to EAS, and get the intrastate flight prices regulated or capped. Air service as a form of public transport for regional and remote locations.

 

[justin23]

At the end of the day $30m is small change compared the widespread grift in the NDIS program. I do wonder how much is going to operate the airline and how much is going into the pockets of the administrators.

You could find a lot of things where money is dubiously spent or is a tax concession in our budget for billions, so i'm not bothered by this. I mean really IMO the two options are to just buy the airline and the government run it until a time it might be able to be sold OR they just tender out routes as suggested. The USA basically tenders out essential air services and subsidises the airfare. Thats how Lord howe, Norfolk Island, Christmas and Cocos islands work I believe. I also though thats qhat the Qld government did with Rex....

 

[markis10]

also though thats qhat the Qld government did with Rex....

Still do, Rex have most of them in QLD https://www.tmr.qld.gov.au/travel-and-transport/long-distance-air-services

 

[Saab34]

I see we are just about to tick over a year since the 737 operation collapsed. I hope everyone found new jobs and it somewhat worked out for all in the end.

I wonder if we will see any new entrants in the coming years ahead.

 

[Ansett Nostalgic]

Such a shame that Rex jets didn't succeed.

 

[Saab34]

Such a shame that Rex jets didn't succeed.

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

 

[MEL_Traveller]

I see we are just about to tick over a year since the 737 operation collapsed. I hope everyone found new jobs and it somewhat worked out for all in the end.

I wonder if we will see any new entrants in the coming years ahead.

Didn’t work out for me, as a passenger I invested a lot of time and money into supporting Rex, making diamond status, and absolutely nothing in return. I feel some of the company directors should have provided a warning before people spent their money.

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

Agree. Not helped by zero advertising.

 

[AuSammy]

Wed morning arrived ADL and there's 6 Rex planes sitting idle over in hanger area. Not earning any money on the ground and accruing fees for parking I presume.

 

[HS-TQE]

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

Any unlikely attempt to resuscitate RexJet won't be well received those days considering the revealed L/NP links politically by their leased 737 jets being registered after L/NP politicians ala "VH-Michael Francis McCormack" and "VH-8ight John Sharp"

 

[Balad2005]

Any unlikely attempt to resuscitate RexJet won't be well received those days considering the revealed L/NP links politically by their leased 737 jets being registered after L/NP politicians ala "VH-Michael Francis McCormack" and "VH-8ight John Sharp"

Well , as they say their heart is in the regions.

 

[Saab34]

Never understood that. ‘Our Heart is in the country’ but we are running a full blown Melbourne to Sydney to Brisbane operation.

Perhaps they should have stuck with the heart and just played in the country.

 

[MEL_Traveller]

Never understood that. ‘Our Heart is in the country’ but we are running a full blown Melbourne to Sydney to Brisbane operation.

Perhaps they should have stuck with the heart and just played in the country.

I thought it was quite clever!

Our heart is in the country could mean bringing country hospitality to the mainline network. The ‘country heart’ in the ‘country, Australia’.

It was true, the crews did offer great hospitality.

 

[jb747]

I really don’t see the issue on a political front if they tender out Rex work.

I don’t see how it will backfire on the Labor front if they offload the work to others, maintain the connections, work with those others to secure employment for those etc. They could be clever and actually dissolve Rex, but still maintain the regional connections, employees.

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.