Bad management. Bad marketing. Bad website. Bad boardroom feuds. Bad fleet (clapped out old Saabs), Bad expansion Jet plan and Probably trading whilst insolvent.
The entry into the Australian Domestic market by REX was predicated on one thing, the liquidation of VA. An opportunistic if not fairly simple plan. When Bain Capital rode in and saved VA the prerequisite for the adventure, as stated in REX’s proposal to the ASX, had evaporated. The madness in all of this was that REX still had several months in which to shelve the process without any financial penalty. Instead Hubris got in the way, and the destruction of Australia’s largest independent regional airline was all but assured.
Excellent analysis here. Well done. Perhaps look at why Australia has such a high fail rate of airline companies. Compass, Tiger. Strategic, Bonza and more. Surely not all bad management?
Thank you so much! Yeah I’ll definitely consider that, I just don’t have time at the moment to do that and weekly trip reports but I’ll think about it :D
Thankyou for your review It's a huge shame that Rex's input into the competitive market will no longer be available 😢😢 Looks like Qf(Jq)Va rule the airs
I think a large part of Rex's downfall was not the 737 leases, but their marketing. The "our heart is in the country" painted on all of their 737 confused those QF or VA flyers who may try them, assuming that 737 on the ramp was going to a non capital city. Their aircraft should just have the Rex logo. Nothing else.
how about an on demand airline that acts like an uber. You rock up at an aerodrome or regional airport, request a flight to wherever your going and bam. Direct. Probably cost just as much as the ridiculous airfares that are charged on regional flights but you can actually fly direct to your destination. This could even land on rural airstrips on properties
I flew BNE - SYD on VH-MFM, which had history with a few airlines such as Jet Airways and Vistara. It had entirely different seats compared to the former VA aircraft. I agree their cabin varies alot. I will miss Rex, they were my favorite Australian airline. I like the free simple snack and hot drink service and competitive fares.
When Rex tried to compete with Virgin Australia, it lost the fundamental core that made this airline relevant in the Australian aviation industry - serving regional communities. But there's more to the collapse of Rex than simply because Bain Capital saved Virgin from extinction. Higher fuel prices, alleged slot hoardings (especially on Qantas and Virgin's end), the complexities of flying jet aircraft and the fact that Australia is too small to sustain more than one-and-a-half carriers meant that Rex was in deep financial trouble by the time the airline called in the administrators. Unlike Bonza, Rex is too important to collapse - they're a lifeline to smaller, regional communities where access to transport is limited. Additionally, they provide hundreds of jobs when the cost of living is affecting people who are doing tough. I believe Rex still has a place in this cut-throat Australian aviation market and that Australia needs Rex more than Rex needs them to financially survive. ✈
The regional communities could be served by an on demand airline that acts like an uber. You rock up at an aerodrome or regional airport, request a flight to wherever your going and bam. Direct. Probably cost just as much as the ridiculous airfares that are charged on regional flights but you can actually fly direct to your destination. This could even land on rural airstrips on properties. We should give it a crack.
I would agree that there are many factors to why Rex failed in its 737 flights, not just Virgin Australia’s survival. Yeah, Australia does need Rex to keep regional communities connected.
Maybe instead of investing in intercity flights, what they should of done was replace their ageing saabs with some more modern turboprops. Considering they started planning to launch around the time VA was in trouble, they could of snapped up VARA fleet of ATRs to replace some of their older saab aircraft. If they want intercity routes, they could of done a deal with Alliance. Afterall, Qantas have a deal with Alliance to operate E190s under the Qantaslink brand and Virgin has a similar contract with Alliances Fokkers, so maybe Rex should of looked into a deal like that to expand intercity if they wanted to. But replacing their ageing saab fleet should of been a priority. They have instead neglected their regional network.
In denmark we had cimber & their regional business was quite good, but they wanted to take over Sterlings 737s & 4 years later they failed. I feel im watching it happen again...
Before watching the video, and of course only knowing a little of the topic, I'm going to suggest what went wrong was trying to break into the jet routes, instead of working on their regional routes. This is outside the internal issues as well.
Yes I think thats a major part of the problem, but as I said in the video i believe there to be many factors. It is sounding more and more like internal issues played role as well.
10:20 and 10:25, I was there 1 week ago, I stay 4 days in Sydney, it's awesome, taking a train in Sydney is awesome, I can use international credit to take and leave the train and it work, wow transportation is awesome, so no need to book grab or uber or bolt, except the airport. But were unlucky with the weather for 2 days, before it clear out, every afternoon, it drizzled, not good, but I am safe and okay, it's windy and cold, but I am good. 10:49, I was there last week Saturday, but departing in terminal 1 for Jetstar, Boeing 787-8 to Honolulu, flight is 90% full, flight is good and okay, 9 hours, I slept 2 hours, it's good and okay. I would love to visit Sydney again next year and it's my favorite city that I love to visit Australia.
Well i´ve questions: 1-What a LOAD FACTOR in the 737 routes? 2-The price of ticket is good for REX? (Pay all costs of operation) In Australia are basically 10 airports who you could operate with 737 or A320. You said 737 in Alice Springs? (Alice Springs, Mildura, Wagga Wagga, Sunshine Coast and others is too small for 737 or A320, you dont has LOAD FACTOR Sufficient for this) The Embraer (NJE) came too late, ideal for Alice Springs, Mildura, Wagga Wagga, Sunshine Coast. I tell based in numbers!!!
JQ,QF and VA all fly a320/737 flights to alice springs showing there is demand, plus JQ flies from MEL and SYD to Busselton in southern WA and its more often than not full, further showing that there is demand to regional towns. also how you worded things is a bit confusing so idk what you mean with some things..
I think 737 load factors were around 80%, you can find that data online I think. I’m not sure what you mean by if the price is good for Rex, if you mean was it quite cheap then yes it was, which would mean Rex didn’t make as much money. I said a Rex 737 was sent to Alice Springs to be scrapped, not for passenger flights. Rex only sent its 737s between big cities such as Melbourne, Sydney, Brisbane, Adelaide etc
Out of all the airlines, I didn't expect Rex was going to be the next one going bankrupt
I didn’t really either!
Seriously!
Noooo they are my favourite airline
They’re one of my favourites too :(
Very well made, nice work
Thank you so much!
Bad management. Bad marketing. Bad website. Bad boardroom feuds. Bad fleet (clapped out old Saabs), Bad expansion Jet plan and Probably trading whilst insolvent.
I would say that all of your definitive points played a factor to a certain extent.
The entry into the Australian Domestic market by REX was predicated on one thing, the liquidation of VA. An opportunistic if not fairly simple plan. When Bain Capital rode in and saved VA the prerequisite for the adventure, as stated in REX’s proposal to the ASX, had evaporated. The madness in all of this was that REX still had several months in which to shelve the process without any financial penalty. Instead Hubris got in the way, and the destruction of Australia’s largest independent regional airline was all but assured.
Yeah I think things might’ve been a lot different had VA not of survived. It’s a shame both couldn’t succeed but oh well.
Excellent analysis here. Well done. Perhaps look at why Australia has such a high fail rate of airline companies. Compass, Tiger. Strategic, Bonza and more. Surely not all bad management?
Thank you so much! Yeah I’ll definitely consider that, I just don’t have time at the moment to do that and weekly trip reports but I’ll think about it :D
Nice vid mate
Thank you!
Thankyou for your review
It's a huge shame that Rex's input into the competitive market will no longer be available 😢😢
Looks like Qf(Jq)Va rule the airs
until i launch my own airline.
You’re welcome! Yeah it really is, they were a great option and brought prices down.
I think a large part of Rex's downfall was not the 737 leases, but their marketing. The "our heart is in the country" painted on all of their 737 confused those QF or VA flyers who may try them, assuming that 737 on the ramp was going to a non capital city. Their aircraft should just have the Rex logo. Nothing else.
Yeah it was an interesting decision to display that text so prominently on the 737s
Look from top down.
?
It would be a darn shame to lose this airline as their regional routes are important to our regional and farming communities.
how about an on demand airline that acts like an uber. You rock up at an aerodrome or regional airport, request a flight to wherever your going and bam. Direct. Probably cost just as much as the ridiculous airfares that are charged on regional flights but you can actually fly direct to your destination. This could even land on rural airstrips on properties
rex pull out of some rural towns to bring in 737
Yeah it would be a real shame, and a problem too.
I was at the airport yesterday the 737 was not there I don’t think, Saab aircraft were there
If you were just in the terminal you may not have been able to see them because they aren’t parked right at the terminal.
Would've been alright if they had freight contracts........ to have some form of income when tickets didn't sell.
That would've helped i imagine yeah.
rex should never pull out of country areas place Always full
I really hope they continue to serve regional communities!
Rex we’re good but virgin will always be better
Yeah Rex was great!
@@Aviation763 yep they still operate the Saabs at my local airport in Parkes which is good
Awesome analysis mate
Thank you so much!
I flew BNE - SYD on VH-MFM, which had history with a few airlines such as Jet Airways and Vistara. It had entirely different seats compared to the former VA aircraft. I agree their cabin varies alot. I will miss Rex, they were my favorite Australian airline. I like the free simple snack and hot drink service and competitive fares.
Yeah I’ve flown on MFM a couple times, it has certainly got an interesting history! Yeah I’ll miss Rex 737s for sure. Yeah me too!
When Rex tried to compete with Virgin Australia, it lost the fundamental core that made this airline relevant in the Australian aviation industry - serving regional communities.
But there's more to the collapse of Rex than simply because Bain Capital saved Virgin from extinction. Higher fuel prices, alleged slot hoardings (especially on Qantas and Virgin's end), the complexities of flying jet aircraft and the fact that Australia is too small to sustain more than one-and-a-half carriers meant that Rex was in deep financial trouble by the time the airline called in the administrators.
Unlike Bonza, Rex is too important to collapse - they're a lifeline to smaller, regional communities where access to transport is limited. Additionally, they provide hundreds of jobs when the cost of living is affecting people who are doing tough. I believe Rex still has a place in this cut-throat Australian aviation market and that Australia needs Rex more than Rex needs them to financially survive. ✈
The regional communities could be served by an on demand airline that acts like an uber. You rock up at an aerodrome or regional airport, request a flight to wherever your going and bam. Direct. Probably cost just as much as the ridiculous airfares that are charged on regional flights but you can actually fly direct to your destination. This could even land on rural airstrips on properties. We should give it a crack.
I would agree that there are many factors to why Rex failed in its 737 flights, not just Virgin Australia’s survival. Yeah, Australia does need Rex to keep regional communities connected.
well done. you always do so much research.
Thank you so much!
Maybe instead of investing in intercity flights, what they should of done was replace their ageing saabs with some more modern turboprops. Considering they started planning to launch around the time VA was in trouble, they could of snapped up VARA fleet of ATRs to replace some of their older saab aircraft. If they want intercity routes, they could of done a deal with Alliance. Afterall, Qantas have a deal with Alliance to operate E190s under the Qantaslink brand and Virgin has a similar contract with Alliances Fokkers, so maybe Rex should of looked into a deal like that to expand intercity if they wanted to. But replacing their ageing saab fleet should of been a priority. They have instead neglected their regional network.
I get what you're saying yeah, and in hindsight that was probably what Rex shoud've done.
In denmark we had cimber & their regional business was quite good, but they wanted to take over Sterlings 737s & 4 years later they failed.
I feel im watching it happen again...
Its sad to see airlines in trouble, especially when they offer a good product.
Virgin has hit the sweet spot, excellent service, value fares, clean interiors, good lounges.
They kinda have yeah, Rex did some things better but also some things worse.
Before watching the video, and of course only knowing a little of the topic, I'm going to suggest what went wrong was trying to break into the jet routes, instead of working on their regional routes. This is outside the internal issues as well.
Yes I think thats a major part of the problem, but as I said in the video i believe there to be many factors. It is sounding more and more like internal issues played role as well.
10:20 and 10:25, I was there 1 week ago, I stay 4 days in Sydney, it's awesome, taking a train in Sydney is awesome, I can use international credit to take and leave the train and it work, wow transportation is awesome, so no need to book grab or uber or bolt, except the airport. But were unlucky with the weather for 2 days, before it clear out, every afternoon, it drizzled, not good, but I am safe and okay, it's windy and cold, but I am good.
10:49, I was there last week Saturday, but departing in terminal 1 for Jetstar, Boeing 787-8 to Honolulu, flight is 90% full, flight is good and okay, 9 hours, I slept 2 hours, it's good and okay. I would love to visit Sydney again next year and it's my favorite city that I love to visit Australia.
Yeah the train works well. Awesome!
It is. Hopefully no train strike in Australia. Thanks.
this is really good i really want to be friends
Thanks!
Well i´ve questions:
1-What a LOAD FACTOR in the 737 routes?
2-The price of ticket is good for REX? (Pay all costs of operation)
In Australia are basically 10 airports who you could operate with 737 or A320.
You said 737 in Alice Springs? (Alice Springs, Mildura, Wagga Wagga, Sunshine Coast and others is too small for 737 or A320, you dont has LOAD FACTOR Sufficient for this)
The Embraer (NJE) came too late, ideal for Alice Springs, Mildura, Wagga Wagga, Sunshine Coast.
I tell based in numbers!!!
alice springs is the cemetary for planes in aus. They land, park, and never go anywhere again.
JQ,QF and VA all fly a320/737 flights to alice springs showing there is demand, plus JQ flies from MEL and SYD to Busselton in southern WA and its more often than not full, further showing that there is demand to regional towns. also how you worded things is a bit confusing so idk what you mean with some things..
Mate, You can even land a 737 at hamilton island. VA and Qantas do it all the time
I think 737 load factors were around 80%, you can find that data online I think. I’m not sure what you mean by if the price is good for Rex, if you mean was it quite cheap then yes it was, which would mean Rex didn’t make as much money. I said a Rex 737 was sent to Alice Springs to be scrapped, not for passenger flights. Rex only sent its 737s between big cities such as Melbourne, Sydney, Brisbane, Adelaide etc