Qantas then ask for a handout as well, also run at a loss, get Job keeper, but sack 6000 worker+ another 2,500 worker due to further loss of 2.7 billion dollars in the financial year. The Singaporean owner would be … Employees take Flight Centre to court over alleged... Government-supplemented domestic flights continue to March, Breaking: RAAF Super Hornet crashes and pilots eject, Why drones are on the brink of changing our world, Keep Ayers Rock Airport shut, say traditional owners, Qantas ground handling bid process was a stitch-up, says TWU, CAREER ON THE MOVE – From humble beginnings to key overseas role, Home again – the repairs and the return of Qantas A380 VH‑OQA Nancy-Bird Walton, Earth moves: Works begin at Western Sydney Airport, Because in aviation, situational awareness is everything. REX Airlines, Australia’s largest independent regional and domestic airline, is making good on its promise to challenge Qantas, Virgin and Jetstar head-on, with Aviator as their wingman. Through-fares at exceptional prices are now available for sale on the Rex website for travel from 1 Mar 21. In contrast, before Virgin Australia collapsed, it approached the Australian Government eight times for emergency funding, seeking up to $960 million in loans. Both Rex and the National Party reject any suggestions of favoritism. However, the $62.1 million of government grants, including JobKeeper and regional aviation bailouts, led to total revenue notching up from $318 million last year to $322 million in FY20 despite passenger revenue declining by $65 million. Qantas ground handling bid process was a stitch-up,... DC-3 to fly over Sydney Harbour on Thursday, Adelaide’s bigger international departures hall opens, Qantas picks Swissport for outsourced ground handling. "Yet unfortunately for REX, because they are a foreign-owned company, they weren't given that education around cultural norms. However, the big foreign shareholders will be out of pocket. “Even Rex cannot survive the next six months of this global emergency,” its chief operating officer, Neville Howell, pleaded. By the way, Rex is foreign owned. As a regional airline, Rex received government assistance under a different program to the Australian Airline Financial Relief Package. REX Airlines share price rockets up 13%, smashing 52-week high REX Airlines (ASX:REX) share price flies as promotional fares go on sale Why the Regional Express (ASX:REX) share price is rising today Cry poor, rake in the cash and then have a bash @ the big boys while they are down. The total amount will be injected by PAG's subsidiary PAG Regulus Holdings Pte Ltd. in the form of senior convertible notes. That’s a big windfall for a carrier to normally operates on threadbare budgets. Complicating matters is that Virgin is mostly foreign-owned, with 90% of shares held by Singapore Airlines, Etihad Airways, Chinese groups HNA and Nanshan, and Richard Branson’s Virgin Group. The airline has since been sold and will continue to fly. (Ryan Pierse/Getty Images) John Sharp, Rex’s deputy chairman, told … ... Rex also received $40.4 million under the $198 million Regional Airline Network Support program. More recently, VA 1.0 never made money, and QF's finances are questionable according to our man RAM. Link Market Services Limited (formally ASX Perpetual Registrars Limited) Locked Bag A14, Sydney South NSW 1235 Tel: 1300 735 980 (within Australia) / +61 1300 735 980 (outside Australia) Rex is making it cheaper and easier for travellers from Regional Australia to connect to Australia’s major capital cities and vice versa. Just last week, the flag carrier and announced nearly 2,500 more jobs are at risk because the business plans to outsource its remaining ground handling operations. “Rex believes that regional aviation will recover much sooner than the domestic or international sectors and, barring further waves of outbreak, Rex sees regional aviation returning to normalcy within two years.”. Don’t forget that Rex is a Singaporean owner airline with a leg up from the LNP. Working closely with airlines including Qantas and Virgin Australia, Andrew’s first-hand knowledge of the challenges and opportunities facing Australian airlines adds exciting depth and color to his work and sees him providing commentary to ABC News and more. Given Virgin Australia is "90 per cent foreign owned" and "paid no tax" on $23.4 billion revenue for five years, the Australian government need to … They’ll get what’s due to them, in time, particularly if they try it on with QANTAS, flying ‘Golden Triangle’ routes’. The Australian Broadcasting Corporation’s Four Corners program yesterday suggested Rex has received favorable treatment at the expense of other local airlines. I guess it helps when you have a former Liberal/ National Party MP as Deputy Chairman to seek financial handouts from the Liberal/ National Party government. look forwatd to their entry on the MEL/SYD/BNE Routes. Its chairman, Kim Hai Lim owns 17.2% of the airline. The regional airline said on Tuesday that it had secured US$107.5 million in funding to kickstart the flights. Singaporean interests own Rex. He said that it cost Qantas 170 million to setup Jetstar. Then they enter the ASX and announce expanding their Airline by flying between capital Cities, The Golden Triangle, Melbourne-Sydney & Brisbane using 10 leased Ex Virgin Boeing 737-800 jets. Rex’s ability to ride out the coronavirus storm compares well with Qantas, which blamed a “near-total collapse in travel demand” for recording a statutory loss before tax of $2.7 billion for the last financial year. Clarence Valley councillor Debrah Novak won't apologise to REX. “One of the things I’ve learned from this is that we didn’t have the deep ties into Canberra that other parties in this industry have,” says the Virgin Australia CEO in reference to Rex. As the biggest regional airline in Australia, Four Corners reports Rex has trousered $55 million in grants from the Australian Government. “Rex is majority foreign-owned and the government just handed out their National Party donors money no worries.” (Rex donated $44,000 to the National Party and $21,000 to … Mr Sharp said the airline had "been advised that equity investors could be readily found" to provide the $200 million needed to turn Rex into a competitor to Qantas and Virgin. Australia’s Regional Express (Rex) has secured six ex-Virgin Boeing 737-800 NG aircraft for their upcoming capital city flights, according to information obtained by SamChui.com. “Rex makes a solemn promise that it will give back to the community in the future when it is strong again,” said Lim. Regional airlines became eligible for grants under a $206 million Regional Aviation Rescue Initiative. Regional Express, commonly referred to as Rex, is Australia’s largest independent regional airline. Even Lim confirmed to CNBC that Rex is only surviving “at least the next six months … ATR 42s for which there is an already well-established service facility. Speculation later linked the airline to the purchase of 10 Boeing 737s from Virgin Australia. “We don’t object to the sector getting support. The Virgin Group had a 10% shareholding. Rex is said to have deep political connections and influence in Australia’s capital, Canberra. Late in March, Rex warned it would have no choice but to announce the “shutting down of its network” if it didn’t receive financial aid from the government. Just make shore you are mates with the federal Transport Minister Michael Mc Cormack,(also Deputy Prime Minister).Strange how REX Airlines is successful at receiving a 62 million grant as well as Job keeper for their redundant staff. Where is REx going to get the additional funds if their sums are wrong already? They DO perform a great service for the rural sector, but at what cost to the travelling pax and to whose real benefit??? Such an incredible turnaround from an airline on the brink of collapse to announcing route expansion plans an possible leasing of Virgin Australia 738’s within such a small time space. I can already imagine the crocodile tears when they find they can’t make a profit on the Golden Triangle routes and they complain to the Government that they need huge subsidies to prevent them from going under … again! Geeezzz…….. Commenter, Graham, above’s correct. Following Virgin Australia’s collapse in April. Singaporean interests own Rex. Foreign Affairs & Security ... Rex and its wholly owned subsidiary Pel-Air Aviation received close to $81 million from three of the government's grant schemes. Regional Express (also known as Rex) is an Australian airline based in Mascot, New South Wales. School Holiday’s coming up, give people the opportunity to travel. The states would be worse off without REX. As the Four Corners program noted last night, that makes Rex a small airline with a big political footprint. “The government was not going to bail out five large foreign shareholders with deep pockets, who together own 90% of this airline.”. Why doesnt Rex admit HOW MUCH GOVT SUBSIDIES it recieves to date!? "It's not said with malice, I don't think I should have to apologise." It even added that help was necessary to be able to transport COVID-19 testing samples from regional areas to capital cities for analysis. Two-way New Zealand travel bubble to launch early... Diamond appoints Utility Air as parts distributor, Inside Aviation: Outback Air Race returns in 2021. Immediately before the announcement of the grants, Rex threatened to stop flying, even declaring force majeure on some already government-subsidized routes. An aerial view of Rex Airlines aircraft at Sydney Airport on April 22, 2020 in Sydney, Australia. Reply john March 23, 2020 - 4:31 pm Huge amounts. Sign up to our daily aviation news digest. Yesterday, the airline made a splash when it announced it would begin operating jets on lucrative Australian trunk routes. Can someone ask REX why they won’t increase capacity in NSW? The Federal government reason for not helping support for Virgin was because the government was not going to prop up a foreign Airline. Great regional airline. From 1 March 2021, travellers will finally have a high quality, reliable and affordable airline to fly between Australia’s major capital cities….and that’s just for a start. In contrast, Virgin Australia has received nothing. However, Rex might surprise with foreign-owned VA 2.0 the casualty. Let’s see where they’re at, in a year’s time, when there’s no more JobKeeper multi-millions’ $$$$$$ coming in to them. Broke one day, profit the next. Why don’t they just focus on their primary raison d’etre … regional express! Maintaining air connections to rural and regional towns is a hot button political issue. I’m sure many of the future travelling public will remember them ostensibly ‘blackmailing’ the Fed Govt back in March to ‘give them money’, by boycotting them. “You only get that benefit [the grants] if you are flying, and when we became almost grounded like Qantas did as well, it was of no benefit,” says Paul Scurrah. That Coalition government remains in power in Australia. Not surprised to see how convenient it is to know people in higher places! Various other Singaporean interests hold significant shareholdings in Rex. The assets of the two airlines were purchased by Australiawide and merged to form the airline Regional Express, known as Rex. Pel-Air also has access to over 50 Saab 340 aircraft owned by Rex. What is Regional Express (Rex)? But it hasn’t been all fun in the media sun for Rex, with reports of political favoritism and cronyism. But as Four Corners reported, Rex is also foreign-owned, and unlike Virgin Australia, it has enjoyed some financial uplift during COVID-19. The plane touched down in Sydney this afternoon (November 5). Overall, for the previous financial year, the airline recorded a statutory loss after tax of $19.5 million caused by passenger numbers plummeting 90 per cent in the latter half of March and a $62 million impairment charge against its assets. They sure conned the Government as far as I can see. Rex’s deputy chairman, John Sharp, denies Rex received favorable treatment from the Australian Government. Based in Melbourne, Australia. That included $69 million to underwrite regional flights directly. MC-21 Boeing 737 MAX Challenger Takes First Flight With Russian Engines, Turkish Airlines Receives Europe’s Leading Economy Class Award. But as Four Corners reported, Rex is also foreign-owned, and unlike Virgin Australia, it has enjoyed some financial uplift during COVID-19. We use ads to keep our content free. Will Rex return any taxpayer funded assistance from these announced profits? Journalist - A Masters level education and appetite for travel combines to make Andrew an incredible aviation brain with decades of insight behind him. It sure is a WHO you know in ‘top echelons’. The problem is Why was REX Airlines successful with the Government with the 62 million Grant & Job keeper,& not made to suffer like Virgin & Qantas, but guess what REX Airlines is foreign owned … The National Party traditionally represents rural constituencies, and that’s where Rex flies too. “Even Rex cannot survive the next six months of this global emergency,” its chief operating officer, Neville Howell , pleaded. Despite this, suspicions of political favoritism persist. Rex said that if it wasn’t for the aid, Australia’s regional communities “would have been dealt yet another mortal blow following the devastating effects of drought, bush fires, floods and now the pandemic”.