Rex versus the Doctor

[drron]

Well Bundaberg council is currently jumping up and down because they want competition for Qlink.On local TV last night the mayor was complaing that MCY has services to SYD and MEL so why shouldn't Bundy?

 

[anat0l]

Well Bundaberg council is currently jumping up and down because they want competition for Qlink.On local TV last night the mayor was complaing that MCY has services to SYD and MEL so why shouldn't Bundy?

Can BDB take larger than prop aircraft?

Well, there's always DJ to the rescue.

 

[medhead]

Well Bundaberg council is currently jumping up and down because they want competition for Qlink.On local TV last night the mayor was complaing that MCY has services to SYD and MEL so why shouldn't Bundy?

Has he been hitting the sugar cane juice?


Sent from the Throne

 

[Major]

MCY services a population of over 300,000

From Sunshine Coast Council
Growth in the Sunshine Coast is set to continue, making the region one of the most dynamic and innovative investment prospects in Australia. With a population of 306,909 people (2011 Census) and projected to increase to over 500,000 people in the next two decades, the Sunshine Coast has an ever growing local workforce to meet the needs of new business and industry.





Whereas BDB provides for 120,000

Bundaberg


The city of Bundaberg, about midway between Rockhampton and Brisbane, marks the southern boundary of the Great Barrier Reef Marine Park and of the Central Queensland region. The city is about 90 minutes drive from Fraser Island, a World Heritage-listed national park. Bundaberg's population is about 45 000 within a district of about 120,000.

 

[samh004]

MCY services a population of over 300,000

Whereas BDB provides for 120,000

What are you doing bringing logic to an argument?

 

[eastwest101]

Where is the competition going to come from? Sharp? Skywest? Brindabella?

It hasn't been made clear in the press - but the few media articles I have been seeing are really just rumours - but rumours of small jets. I know that Qantaslink have moved into some of Rex's traditional ground with Dash 8's, sometimes with the result that Rex gets massacred and leaves the route. Possibly also VA with ATR's or could be a completely new startup or and existing operator looking to increase aircraft. It hasn't been clear in the press and could all be rumour. The Rex press release was in response to rumblings in the Mildura and Broken Hill media. And also

If a community really wants to keep an airline service, don't they usually just jump up and down really hard and the government will make sure they still have services anyway?

Correct. Its pretty upsetting when a community loses its entire air service due to the withdrawal of its sole airline. i.e. Rex withdrawing from Griffith or when Macair went under leaving most of Western QLD without services. But if an existing service like Rex Saab 340's is replaced by Qantaslink Dash 8's or VA ATR's then its still a blow for competition, but at least they still have an air service...

In the press release I can sort of agree with points 1 to 3, but point 4 is highly contestable in my opinion (with the standard whinge about high fuel prices and airport charges thrown into every Rex Press release for good measure): See below for text of original Press Release:


6 AUGUST 2012
MEDIA RELEASE

REX STATES POSITION ON COMPETITION

In response to media requests to respond to speculation that a small local airline is intending to mount regional services to Griffith, Mildura, Broken Hill, Dubbo etc, Rex puts on record its position with regard to competition:

1. Several studies and a decade of experience have demonstrated that only routes with over 100,000 annual passengers can viably sustain competition with aircraft type of around 30 seats. In our network we have seen numerous cases of competition for smaller routes like Adelaide - Mount Gambier (70,000 passengers), Melbourne - Burnie (90,000 passengers), Sydney - Armidale (90,000 passengers) where eventually after a period of intense competition one of the carriers withdraws often at a high cost to both carriers during the period of head-to-head competition.

2. None of the intended routes mentioned in the articles and currently serviced by Rex have close to 100,000 passengers per annum.

3. Competition is good only if it is sustainable. Where the market is too small for competition, then competition will only lead to losses for all competitors and has no longterm benefit for the community. In extreme cases, both carriers are mortally wounded by the competition and both may collapse.


4. The use ofsmall jets (70seats and below) for thin regional routes in Australia has ended in massive losses for the operators concerned. We think today's environment is even more hostilewith the high cost of fuel and the added burden of security screening charges.


In conclusion, Rex welcomes competition that is well-founded on economic viability and will benefit the long-term interests of the community. However Rex will not allow itself to be forced out of communities it has served well with sustainable pricing and long term commitment. Rex has faced such challenges before from the main carriers and has stood its ground to this day.


Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of more than 40 Saab 340 aircraft on some 1,300 weekly flights to 35 destinations throughout New South Wales, Victoria, Tasmania, South Australia and
Queensland. The Rex Group comprises Regional Express, air freight and charter operator Pel-Air Aviation and Dubbo based regional airline Air Link, as well as the pilot academy Australian Airline Pilot Academy.



Rex Media Contact: Corporate Communications – +61 402 438 361

 

[mannej]

REX certaintly are not alone with some of the replies back to passengers!

Passengers should pay more for being stupid, Ryanair boss Michael O'Leary says | News.com.au