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‘Lives could be lost’: Rex ups stakes again in fight for help

written by Adam Thorn | April 7, 2020

Rex has made its strongest attack yet in its bid to secure financial help (Australian Aviation archive)

Rex has yet again raised the stakes in its campaign to secure more financial aid by claiming that “lives could be lost” if the airline is unable to transport medical tests on selected routes.

In a strongly-worded statement, the business praised Queensland and Western Australia for offering to subsidise essential services, but said, “no other states have shown any interest”.

The business also outlined which basic services (see bottom of page) will continue nationwide under the federal government’s bailout plan to cover one service per week to 138 communities.

Rex has issued a series of dramatic statements over the last few weeks attacking state, local and national government, which Australian Aviation has charted here.

On Monday evening, deputy chairman John Sharp said, “Rex is fully mindful of the horrifying consequences to regional and rural communities like Broken Hill that may face either not having any air services or having a dramatically reduced air service.

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“Lives could be lost because medical samples could not be tested in a timely manner or blood could not be transported.

“Rex had been fulfilling this critical and essential community service role in the past two decades without assistance from anyone, and often even losing money on communities with very small passenger numbers, because our heart is in the country and we were profitable enough to do so.

“Rex apologises that it can no longer continue shouldering this burden as we are fighting for our own life. Rex’s first priority is to survive this crisis so that regional and rural communities can count on our air connections to rebuild after the crisis, and long into the future.”

Today’s announcement also appeared to confirm Rex will maintain a slightly enhanced schedule for Queensland and Western Australia, stating, “Discussions are very advanced and the new schedules for these two states will be revealed once matters are finalised. No other states have shown any interest.”

In other regions, Rex will fly only those routes covered by the minimum federal agreement, subject to approval.

The business also warned, “If Rex’s application is not successful, then Rex will have to suspend services in all states without state government assistance.

“The outcome for federal funding is expected the end of next week and in the meantime, Rex will operate schedules that at least match what we have proposed for the state andfederal funding.”

The airline appeared to shift the blame away from the national administration and towards local authorities.

“Rex wishes to once again thank the Deputy Prime Minister, Michael McCormack, and the Morrison government for their leadership and decisiveness in stepping in so promptly to rescue regional aviation, which is ultimately a state and local government responsibility,” said Sharp.

“Without this immediate intervention, Australia would not have a single regional airline left standing.”

However, in its last statement on 31 March, Rex said, “While the federal government has announced several assistance packages for airlines, no concrete details have been forthcoming and more importantly, not a single cent has been disbursed.”

PROPOSED REX WEEKLY RETURN SERVICES

NSW, South Australia, Victoria and Tasmania
(Subject to federal government funding. Details for Western Australia and Queensland will be released once confirmed with respective state government.)

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Comments (27)

  • Rod Pickin

    says:

    Mr. Rex this is now beyond a joke. Just tell us what you can do and I am sure that we can find someone else who can and will do what you either can’t or won’t do; there are a few turbo props laying idle at the moment. What was that the late Pres. Kennedy said, “think not what your country etc, I will let you fill in the rest.

    • Hein Vandenbergh

      says:

      Rod, of course is not their country…

    • Robert

      says:

      Yes, well said. Their increasingly panting claims on behalf of the community reveal their own commercial desperation—which might well be valid but should be transparent.

  • Russell M

    says:

    How about, the Government gives you a $4 million grant this week.

    Here’s the condition – hand over the keys to the SAAB fleet and then shhh up in Singapore and let someone else run them for you, methinks Alliance or Network or QantasLink or Air North.

  • Craigy

    says:

    A question to John Sharp. How much money are the Singaporean owners providing to help the airline during this pandemic? If none, why not? If the Federal government provides funding, the airline should pay it back with interest. I’ve seriously had enough of the negotiation by megaphone tactics of REx. I no longer have any empathy for the airline’s predicament.

  • Kim

    says:

    Pity our South Australian Government is so city-centric. Can’t seem to think outside of the suburban area. For goodness sake, Mr Marshall (Premier) think of the people in Broken Hill, Coober Pedy, Pt Lincoln and Mt Gambier and subsidise Rex for these essential services – please please please..

  • matty

    says:

    If ever there was a case for the Government to buy an airline it would be this one. Not a direct competitor of the big two but servicing the smaller communities. Sufficient aircraft to spread across the country to maintain regional services. Shouldn’t pay more than the current market price though.

  • SydFlyer

    says:

    Let them go down, reallocate the slots to VARA and give the funding to VARA. Don’t give it to these greedy grubs at Rex. Constantly running their private business into the ground. They’ve drained every bit of profit out of the company over the years as seen in zero fleet developments and a poor safety reputation. Why should we give tax payer money to a private company that has been negligent. Give it to VARA, at least they tried changing thing by getting rid of Borgehtti!

  • Stephen Smith

    says:

    Why should tax payers subsidize them.Rex are making ransom demands which should be ignored by any government,especially as they are foreign owned.This country would go down the gurgler if the federal govt. bailed out
    every business begging for money.

  • Chris

    says:

    Reality is in fact that on many of these routes other airlines wouldn’t be jumping at the chance to operate them either.

  • AlanH

    says:

    How many blood samples and other pathology specimens does REX actually transport on its RPT flights? There are plenty of other options and small freight operators that do that on a regular basis, e.g. GAM with their fleet of Aero Commander 500s, plus others. Not to forget the RFDS and the RAAF if push comes to shove. So the alternatives to save lives are plentiful out there. This is extortion tactics and beneath a respected airline like REX! As others have noted, what are their foreign owners contributing?

  • Jim

    says:

    The REX yo-yo continues! They should be careful not to cry wolf too many times, because it’ll eventually catch them out. With all these poor-me statements being released, despite receiving far more help than most other regional operators, many in the industry are quickly running out of sympathy for them.

  • Don’t underestimate how marginal are the economics of a relatively short sector regional airline operation competing against surface transport. Three professional crew members minimum with all of the associated regulatory requirement costs but with just around 34 revenue seats available to cover those huge costs.

  • No chance

    says:

    Bugger off Rex, you’re such an unethical immoralist organisation. We still remember the ‘loyalty’ letter you sent to the first officers that ended you in the High Court. Like to see the end of Rex and Pel Air and the commencement of a reputable Australian owned company. Better still bring back the likes of Max Hazelton and Don Kendall, the gentlemen of the industry who ran a good operation.

  • Meepa

    says:

    Rex stamping their feet for tax payer money! How unusual. I wish Lim Kim Hi (owner) would use some of his BILLIONS to get through this time, rather than sponge on the aussie tax-payer time and time again!

    Just look at the business model of late, simply start routes on thin and very remote routes, and get the govt to subsidise the flights whether they are full or not!
    Time to sell up Rex and get out of Australia. Let another player make a proper go of it.

  • Its about Lim Kim Hai gets out of his closet and does the running. Sharp is just an old national Party hack who does exactly what Kim Hai demands.
    These are just a group of Singapore owned Chinese bullies who have had no place in Australian aviation for a decade. We don’t need overseas companies wanting to steal our money and go. They are running the Saab fleet to its end then they will just disappear to Singapore or China. If they were serious they would have announced plans to start replacing this 30 year old geriatric fleet. No room for schoolyard bullies. If Sharp had an ounce of pride he would resign.

  • Jabiru Joe

    says:

    There are many considered and many emotive comments above. Each valid but I too believe the standover tactics and crying wolf constantly are now a bit past the acceptable. I agree with No Chance, add Jimmy Packer.

  • Peter

    says:

    Blame your state gov, for taking away the rail services. So no choice. Hasn’t Air North parent company filed bankruptcy?.In the US by the way
    Rex provide great service, but not govt owned,

  • Rex King

    says:

    John Sharp has also said part of the airline’s problems are the excessive cost of airport fees. Poetic really because Sharp and his Liberal National party mates got rid of the airports for a peppercorn price. Jobs gone, FAC gone, government income gone, large part of DCA (now CASA) gone. Some airports have now been turned into business parks instead, and you want a handout John? Beam me up.

    • AlanH

      says:

      Yes indeed! Look at CBR Airport for a case in point. It is a business park now and the landing fees are so exorbitant that REX no longer provides a service there despite flying to the NSW south coast towns of Moruya and Merimbula; two destinations that really need direct connections to CBR.

  • Pauly B

    says:

    Typical Rex and their school boy mentality with their threats. If they don’t get what they want, they pick up their bat and ball and go home. They’ve played this tactic since their inception. Foreign owned, let it be funded by the Singaporean’s, not by Australian taxpayers where the profits of the airline go back to Singapore anyway.

  • Marum

    says:

    OK REX . Go to your overseas masters for a bailout. They expatriated their profits during good (profitable) times.

    If anyone thinks that REX are so altruisticm that they are here to provide a service, is living in a fool’s paradise. They are here to male a profit.
    2019 Year:
    Total revenue: AUD317.6 million (USD227.2 million), +7.5% year-on-year;
    Passenger: AUD278.4 million (USD199.2 million), +7.0%;
    Charter: AUD28.5 million (USD20.4 million), +10.8%;
    Cargo: AUD1.5 million (USD1.1 million), +4.7%;
    Total costs: AUD294.5 million (USD210.6 million), +8.3%;
    Labour: AUD112.2 million (USD80.3 million), +4.2%;
    Flight and port operation (Excluding fuel): AUD57.8 million (USD41.4 million), +4.5%;
    Fuel: AUD42.5 million (USD30.4 million), +30.3%;
    Net profit: AUD17.5 million (USD12.5 million ), +3.6%;

    On yer bike squire…Marum

  • Marum

    says:

    OK REX . Go to your overseas masters for a bailout. They expatriated their profits during good (profitable) times.

    If anyone thinks that REX are so altruisticm that they are here to provide a service, is living in a fool’s paradise. They are here to male a profit.
    2019 Year:
    Total revenue: AUD317.6 million (USD227.2 million), +7.5% year-on-year;
    Passenger: AUD278.4 million (USD199.2 million), +7.0%;
    Charter: AUD28.5 million (USD20.4 million), +10.8%;
    Cargo: AUD1.5 million (USD1.1 million), +4.7%;
    Total costs: AUD294.5 million (USD210.6 million), +8.3%;
    Labour: AUD112.2 million (USD80.3 million), +4.2%;
    Flight and port operation (Excluding fuel): AUD57.8 million (USD41.4 million), +4.5%;
    Fuel: AUD42.5 million (USD30.4 million), +30.3%;
    Net profit: AUD17.5 million (USD12.5 million ), +3.6%;

    On yer bike squire…Marum.

    PS. Why won’t you post my comments?

  • Marum

    says:

    2018 REX Profit:

    Total revenue: AUD295.5 million (USD229.1 million), +5.2% year-on-year;
    Passenger: AUD260.3 million (USD201.8 million), +4.4%;
    Charter: AUD25.7 million (USD19.9 million), +12.0%;
    Total costs: AUD271.9 million (USD210.8 million), +2.9%;
    Labour: AUD107.7 million (USD83.5 million), +2.1%;
    Flight and port operation costs: AUD55.3 million (USD42.9 million), +1.6%;
    Fuel: AUD32.7 million (USD25.3 million), +5.7%;
    Profit before tax: AUD25.1 million (USD19.4 million), +40.8%;
    Net profit: AUD16.9 million (USD13.1 million), +34.0%

  • Marum

    says:

    Our Government usually shows the foresight of Lemmings. Look at the Gold Coast rail line for instance. They tore it up and sold everything. Then 21 years later, they had to build it again from scratch.

    We need a regional airline in Queensland, preferably 51% Government owned. That is the only way to provide a reliable, economically priced service. I would suggest turboprop STOL aircraft would be ideal for most routes. (20 Passengers or so) Much like East West used to fly – up to the old Bandeirante size.

    Just my thoughts….Marum.

  • Linda Weaving

    says:

    That is emotional blackmail at its worst!
    You know how lives have been lost?
    Planes.
    Planes bringing coronavirus to Australia.
    Airlines LIKE REX spreading it across the country!
    Rex isn’t a saviour – it’s a vector of disease.
    No-one who matters will care if Red folds.

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