So REX has gone from a speculative $200m capital injection/equity raise to now raising "at least $30m" to fund capital city services.
5-10 jets means Rex can only offer services every 1-2 hours out of SYD/MEL/BNE compared with QF/VA who offered frequency up to every 30 mins in peak times (pre-COVID).
I don't see REX being a big threat to QF, as REX aren't targeting the business/corporate segment and aren't going down the LCC route either, so JQ has got that segment covered. Their proposed offering is squarely aimed at the new VA. Per the AFR article today:
"Rex's domestic operations will be priced at affordable levels but will also include baggage allowance, meals on board and pre-assigned seating." deputy chairman John Sharp said.
It's certainly an opportunistic play by REX who are trying to take advantage of an aircraft leasing market on it's knees and a wounded VA, but there is reason why leasing rates are so low, there is no demand ! This is going to come down to who has got the deepest pockets, and REX is last on that list, they'd better be pretty confident they can get more than $30m in funding because you can bet QF and a recapitalised VA isn't going to let a newcomer take a portion of the supposed cash cow away, particularly in the early stages of the domestic market recovery where QF and VA will be wanting to recapture their respective shares of the market.
REX has done a good job running a small profitable airline on regional routes over the last 10 years, but there is a big difference between operating 36 seat aircraft on regional routes where often they were the monopoly operator and/or had state government subsidies, to operating 180 seat aircraft against 2 significantly larger incumbents who are not afraid to get their elbows out.
I wish REX well, but I can't see them lasting in the long run, history has shown that the Australian market can only support 2 airline groups, and COVID-19 isn't going to change this dynamic anytime soon.
could just get by with 5 jets initially if only did Syd Mel initially.
They could have an 0600 , then 0635 out Of Sydney then at 0800 a Mel based aircraft turn around at Sydney & still have a spare aircraft.
The problem with a small fleet and tight turns is that delays knock on throughout the day and by the end of the day your entire schedule is stuffed. This was Tiger's issue also.
717, 721/2, 732/3/4/5/7/8/9, 742/3/4, 752/3, 762/3, 772/E/W, 788/9, 300,310, 319,320/1, 332/3, 359, 388, DC9, DC10, F28, F100, 142,143, E75/90, CR2, D82/3/4, SF3, ATR