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  #1  
Old 12th May 2020, 01:14 PM
David Knudsen David Knudsen is offline
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Default Rex takes fight to Qantas and Virgin [Jets for REX?]

Full article: AFR Website or similar on SMH

Quote:
Regional Express Holdings will capitalise on the turmoil from Virgin Australia’s collapse and invest $200 million launching capital city services to compete with Qantas, Jetstar and Virgin Mark II.

In a move that could harm the sale price achieved by Virgin’s administrators, the regional airline operator is working on a business plan that includes leasing 10 narrow-bodied jets as well as employing new pilots, cabin crew and ground staff.
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  #2  
Old 12th May 2020, 03:30 PM
MarkR MarkR is offline
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Last time I checked they had something like $9m in cash, their model works on low cost old planes, I don’t think it will fly. Just reading the AA article looks like $200m capital is looking to be raised within 3 weeks.

Last edited by MarkR; 12th May 2020 at 03:47 PM.
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Old 13th May 2020, 12:57 PM
Greg Hyde Greg Hyde is offline
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Remember, Kendell (REX's predecessor) attempted to move from props to jets in the 1990's with the introduction of the CRJ200. It didn't go well.
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Old 13th May 2020, 01:36 PM
Kent Broadhead Kent Broadhead is offline
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Quote:
Originally Posted by Greg Hyde View Post
Remember, Kendell (REX's predecessor) attempted to move from props to jets in the 1990's with the introduction of the CRJ200. It didn't go well.
It was wholly owned by Ansett at that stage wasn't it, and allocated to do the Canberra shuttle (from Sydney at least). My wife always asked me to let her know which flights would be CRJ - she far preferred them over the S340 alternate.
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Old 13th May 2020, 02:43 PM
Greg Hyde Greg Hyde is offline
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Yes Kent,

An Ansett subsidiary that went belly-up with Ansett.

Word has it, that the CRJ jets where expensive to operate.
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Old 13th May 2020, 03:30 PM
MarkR MarkR is offline
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I dont think CRJs or even EMBs are in the picture, more likely A320/737 with a ready workforce on tap locally, smacks of Compass MK3 or Impulse V2.0
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  #7  
Old 14th May 2020, 02:46 PM
Garry Emanuel Garry Emanuel is offline
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It would make some sense for this to be happening if REX had a strong balance sheet coupled with a mindset of a challenger/disrupter.

Whilst I am not familiar with the management, ownership nor culture, my interactions in recent years have felt like they were with a very staid, conservative "brown suit" style of business.

No doubt there will be turmoil in the weeks and months ahead as Qantas, perhaps a trimmed-down Virgin and now potentially REX all scramble to get their hands on a smaller number of passengers.

I can see the $200 million and the current surplus $9 million evaporating quite quickly.
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