Rex to fly between Australian capital cities

AIRwin

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My concern is if they fail, then a lot of regional towns are going to be left with no air service at all, at least while a long, drawn-out contentious bailout or public service contract is drawn up that delivers a much less useful bare-bones service just so state governments can say they did something.
It may become a Bonza bonanza...
 

jakeseven7

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Rex's press releases have become uncharacteristically sedated in recent months. Perhaps their lawyers advised them to stop with the constant public attacks on QF?

I think their fury will now be turned towards the soon to be two 100% foreign slush fund owned airlines - VA2/Bain and Bonza/777partners. That’s my money!
 

HS-TQE

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I think their fury will now be turned towards the soon to be two 100% foreign slush fund owned airlines - VA2/Bain and Bonza/777partners. That’s my money!
Considering they have their own Private Equity firm (PAG) funding the jet operation and also with a stake they'd be seen as hypocritical ;)
 

HS-TQE

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777 vs PAG. Which PE firm will blink first?

And will Bain 'swoop' in if things decline any further at those two? (Unlikely, imo)
 

HS-TQE

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The additional cash burn recommences 15th November...
One of their few 'highly patronised' routes aka SYD/MEL-OOL will resume on 17th December.

Whether if those two routes are actually 'earning revenue' is another question enitrely.
 

Saab34

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What’s the Rex slot Sydney situation? They have been using International slots. Those slots will shortly start to evaporate.

The schedule looks like it’s off peak slots?
 
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One of their few 'highly patronised' routes aka SYD/MEL-OOL will resume on 17th December.

Whether if those two routes are actually 'earning revenue' is another question enitrely.
QLD border will be open to VIC and NSW then, and just in time for the summer break, so there should be a ton of demand on flights up to OOL. But the Roo, the Virgin, the Star and old King Rex all on the same two routes? That's a price war right there, which is great for the public, but not good for Rex's backers, nor for VA, which has got more than enough on it's plate trying to, well, not die again.
 

jakeseven7

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QLD border will be open to VIC and NSW then, and just in time for the summer break, so there should be a ton of demand on flights up to OOL. But the Roo, the Virgin, the Star and old King Rex all on the same two routes? That's a price war right there, which is great for the public, but not good for Rex's backers, nor for VA, which has got more than enough on it's plate trying to, well, not die again.

Bonza! lurks around the corner too ready to carve up Rexy jet ops, VA2 or both! Who’s going to survive… certainly won’t be all 3…
 

HS-TQE

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Bonza! lurks around the corner too ready to carve up Rexy jet ops, VA2 or both! Who’s going to survive… certainly won’t be all 3…
777's 'niche approach' such as OOL to Sydney-Wollongabba or OOL to Melbourne-Essendon on their 737-8 Maxes would be a very novel approach.

It's a battle of the Private Equity Firms. Basically PAG vs 777 vs Bain.

Qantas/Jetstar group only has to sit back and watch the PE firms battle at it, only throw in a few discounts every now and again.
 

jase05

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777's 'niche approach' such as OOL to Sydney-Wollongabba or OOL to Melbourne-Essendon on their 737-8 Maxes would be a very novel approach.

It's a battle of the Private Equity Firms. Basically PAG vs 777 vs Bain.

Qantas/Jetstar group only has to sit back and watch the PE firms battle at it, only throw in a few discounts every now and again.
Despite the doom and gloom and constant cheerleading for VA to fail on here I think they will be just fine and with a leaner operation they will hopefully be around for a long time yet. The other two I’m not too sure about but good luck to them in the endeavours
 
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dajop

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The other two I’m not too sure about but good luck to them in the endeavours

Agreed, I'd say Rex jet services are probably the most difficult to see being sustainable, although I think they have a history of being financially prudent, so if the PAG capital runs out they will almost certainly protect their regional operations, so I don't think it will sink Rex per se. With Bonza, will reserve judgement at the moment they are only a concept. Who knows whether they will get off the ground, and if so what they will do..
 

jakeseven7

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Haha Qantas throw in a discount, yeah that'll be the day.
Jetstar always on discount, in every sense of the word.

If you subscribe to ‘Red E-mail’ you’ll be emailed Qantas sales, it’s really handy then you can click though. They have a lot of leisure routes on sale right now, Tassie has some great fares, Gold Coast too.
 

Saab34

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Have a look at the price of crude oil and what its currently doing. Highest since 2014.

Rex has no ability to offset high fuel prices. If anything will break this operation it’s going to be $130 crude.
 

jakeseven7

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Have a look at the price of crude oil and what its currently doing. Highest since 2014.

Rex has no ability to offset high fuel prices. If anything will break this operation it’s going to be $130 crude.

Interesting point actually. Will make marginal jet ops very hard to turn a dime. This will also impact VA2 who only have large gas guzzling 737s on their marginal leisure routes too (eg Tassie, QLD) now they have no ATR’s, Embraers to use.
 

MooTime

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Interesting point actually. Will make marginal jet ops very hard to turn a dime. This will also impact VA2 who only have large gas guzzling 737s on their marginal leisure routes too (eg Tassie, QLD) now they have no ATR’s, Embraers to use.
Do QF not have gas guzzling 737's??? Do they not fly them to Tassie or QLD??

Or do they have all ultra efficient aircraft?

Mind you this is a Rex thread, but you mention something negative about VA.
 
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henrus

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Do QF not have gas guzzling 737's??? Do they not fly them to Tassie or QLD??
No, but Qantas have a fleet of aircraft they can swap onto routes with smaller demand. We see this all the time where VA operates a 737, Qantas operates Dash 8's or 717's (and yes I know VA has QQ operated routes but not enough).

The other thing is that VA has some freight contracts and Qantas have a lot of freight which can help offset running a 737 or even an A330. Rex doesn't seem to carry any freight on their 737 routes and I doubt Bonza will as well.
 
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