Showing posts with label Rex. Show all posts
Showing posts with label Rex. Show all posts

Sunday, 25 April 2021

Qantas boss slams into Rex Airlines yet again................

Alan Joyce the CEO of Australian airline Qantas has written an opinion piece in the Australian Financial Review, in which he slams the small regional carrier Rex.  The two Aussie carriers have been engaging in a war of words which is damaging the reputations of both airlines.

The article reads more like a teenage bitch slapping rant, complaining about its much much smaller rival than a serious opinion piece from the chief of Australia's national airline. In the article Joyce complains about Rex throwing tantrums, yet responds in exactly the same way.   

He also rants on about Rex threatening to stop flying to certain regional towns, "they’ve used this “or else” strategy eight times in the past 12 months alone." stating that communities from Armidale to Kangaroo Island finding out from media reports that the flight service might end. Which is really not surprising as media reports are the way 94.2% of the travelling public find out about airline routes starting and ending. It is also partly the reason why Qantas themselves employ such a large media department.

Thursday, 22 April 2021

PPG Supplies Rex Airlines with Coatings for Aircraft Livery Repaint

PPG  announced that it recently supplied Rex Airlines with various aerospace coatings for six Boeing 737-800 aircraft that will expand the airline into domestic service.

For the aircraft’s fuselage, tail and engine cowlings, Rex Airlines selected PPG DESOGEL™ EAP-9, which is a chromate-free conversion coating and adhesion promoter; PPG DESOPRIME™ CA7700BE epoxy primer; and PPG DESOTHANE™HD 9008 basecoat-clearcoat system. The wings and horizontal stabilizers were coated with PPG DESOTO® 515X349 exterior primer, which is formulated to protect aluminum and composite substrates from corrosion; PPG PR-1432-GP corrosion-inhibitive elastomeric coating; and PPG Desothane HS CA8000 topcoat system.

“Rex Airlines applied PPG Desothane HD CA9008 basecoat-clearcoat system on our fleet of Saab 340 aircraft, which is the largest Saab fleet in the world,” said Png Yeow Tat, Rex Airlines general manager, engineering. “This innovative technology provides excellent colour and gloss retention and outstanding appearance compared to a direct gloss system, leading the airline to use this system and other PPG products on our B737 aircraft.”

Tuesday, 2 March 2021

Rex axes routes as Qantas moves in to kill competition


The Australian regional airline Rex has announced it has been forced to embark on a major revamp of its regional route network in response to aggressive predatory moves by Qantas into thin regional routes serviced by the company.

Rex’s Deputy Chairman, the Hon John Sharp AM, said, “Qantas has clearly embarked on a deliberate strategy of moving into Rex’s routes that can only support one regional carrier in an attempt to intimidate and damage Rex in its traditional regional market, hoping that Rex would be a less formidable competitor in the domestic market.” 

Qantas is making record losses during COVID and has received an estimated $1.2 billion in Commonwealth assistance to stay solvent but, despite this, feels it is appropriate to use taxpayers’ funds to finance the losses on new services whose sole objective is to weaken the competitor.”

The routes on which Qantas has announced it will be starting, or has started, services since the outbreak of COVID are listed below. All of these routes have only supported one regional carrier in the past and the current monthly passenger numbers are laughable. Even when passenger numbers return to pre-COVID levels, these routes would still be unable to viably support 2 carriers:





The Rex Board has decided to stand its ground in these routes even if inevitably both carriers will be making significant losses. Unfortunately, the expected drag on Rex’s financial position from the losses on the above eight routes will mean that Rex will be unable to continue subsidising marginal routes that we have serviced for the past 20 years. It is with a heavy heart that we are announcing the cessation of services to the five routes below once the government support through the RANS programme is discontinued at the end of March:

Sydney -Bathurst (20,000 passengers pre-COVID)
Sydney -Cooma (6,000 passengers pre-COVID)
Sydney -Lismore (12,000 passengers pre-COVID)
Sydney -Grafton (18,000 passengers pre-COVID)
Adelaide -Kangaroo Island (42,000 passengers pre-COVIDincluding Qantas)

In order to recover from the losses, Rex will, from April, commence new services to ports where Virgin Australia has retreated, leaving Qantas as the sole or dominant operator. The new services are from Sydney to:  Coffs Harbour (330,000 passengers pre-COVID)  Port Macquarie (190,000 passengers pre-COVID)

Rex also calls on the  ACCC  to take enforcement actions against  Qantas for its predatory behaviour. All carriers are facing existential challenges and the ACCC must do its part to ensure that the dominant carrier does not take advantage of the current situation to deliver pre-emptive strikes against its much smaller competitors,  especially at a  time when it  is receiving massive handouts to stay solvent. 

In this environment, the introduction of new competing services in fragile regional routes should beset aside by the ACCCuntil we return to a semblance of normality. Indeed, this is consistent with  the  public  benefit  criterion  accepted  by the  ACCC  when  it granted  authorisation  to  Rex  to enter into an unprecedented collaboration with Qantas on regional routes where the parties had competing services prior to the pandemic."

It is noteworthy that Qantas had not accepted numerous offers by Rex to enter into a collaborative partnership that optimises resources, as permitted under the authorisation, to achieve better outcomes for all stakeholders including the travelling public.


The regional airline also recently introduced a jet shuttle service between Melbourne and Sydney with fares starting off ar $49 and will be starting a route from Sydney to Gold Coast with fares from $69. 






Recommended for you...