REX: Statement to ASX confirms their interest in ‘Domestic operations’

REX ‘discloses‘ that it has been approached by parties interested in backing the airline to start ‘domestic operations’. Since REX is already a presence in capital city to regional areas, and region to region flying, this is being interpreted as capital city to capital city flying.

The statement refers to the board believing that there is a ‘confluence of circumstances’ that provided with a suitable injection of equity, could be advantagious for REX airlines. Those circumstances presumably refer to the administration of Virgin Australia, and the current travel and economic crisis caused by the effect of the COVID-19 pandemic.

Regional Express is currently a regional airline in Australia with a fleet of 60 Saap 340s operating 1,500 flights to 59 destinations through Australia.

2PAXfly Takeout

This is another timely reminder to wear your seatbelt when seated. Holding you close to your seat will protect you from the sort of injuries sustained on this flight, when unsecured passengers flew to the ceiling of the aircraft, and then came crashing down once the ‘drop’ ceased.

The hope will be that this is an anomaly – a ‘freak accident’ in casual parlance. If it is a systemic error either mechanical or electronic, then this is a larger concern for the airlines that fly Boeing Dreamliner 787 aircraft. Let’s hope it isn’t. If it is, it will pile on the woes to Boeing’s existing stack.

Things get more and more interesting, at what seems like a very low estimate of AU$200 million worth of Equity.

The Board is giving itself 8 weeks to think this through. By that time we should well and truly know the fate of Virgin Australia.