Revealed: How Rex plans to take on Qantas, Virgin Australia

Rex intends to turn the COVID aviation crisis into an opportunity with its launch of capital city flights.

By David Flynn, September 25 2020
Revealed: How Rex plans to take on Qantas, Virgin Australia

Regional Express intends to take advantage of the disruption caused by COVID-19 to launch capital city flights by tightening the screws on everything from jet leasing agreements and airport fees to salaries in the name of achieving a low cost base.

Under the ambitious plan – cryptically dubbed ‘Project Mother’ – Rex will challenge Qantas and Virgin Australia for a profitable slice of Australia’s most lucrative routes beginning March 1, 2021.

Fares will be priced at "competitive rates with Jetstar and 5-10% cheaper than Qantas” according to a proposal which Rex shopped around to investors seeking to bankroll the plan. Asian private equity firm PAG is now set to plough $150 million into the duopoly-busting play.

Project Mother’s stated aim is to “launch a domestic-only LCC++ hybrid airline to serve major trunk connections across Australia,” occupying a “mid-tier” position below Qantas and Virgin Australia but above Jetstar.

Starting small, scaled for growth

The first stage would encompass the “five busiest routes ex-Sydney to ensure quick profitability,” says the document, which has been sighted by Executive Traveller. These are listed as Melbourne, Brisbane, Perth, Canberra and Adelaide.

“Should passenger numbers justify it, additional aircraft will be added to augment these services and to start another hub in Melbourne or to open up new routes to the other bigger cities – Darwin, Hobart, Cairns, Townsville, Launceston.”

How Rex's capital city network will take shape.
How Rex's capital city network will take shape.

The proposal said the first phase of Rex’s inter-city network would require 8-10 Boeing 737s and “1-2 aircraft could be added every month if demand justifies,” although Executive Traveller understands the initial launch fleet could be less than five jets and will focus on the core ‘golden triangle’ of Sydney, Melbourne and Brisbane.

Rex is said to have already reserved its Boeing 737-800 registrations with Australia’s Civil Aviation Safety Authority, ahead of the first aircraft sourced from former Virgin Australia lessors rolling into Rex’s hangars at Wagga Wagga next month.

All-economy or a premium cabin?

Although the presentation alludes to an economy-class layout for the Boeing 737s, it also notes that “a range of configurations based upon immediate aircraft availability could be considered.”

“This crisis presents the opportunity to pick up aircraft leases at fire sale values as airlines worldwide lay up a significant part of their fleet,” the presentation adds.

Regional Express deputy chairman John Sharp has previously said fares would include on-board meals, a baggage allowance and pre-assigned seating, while "lounge membership would be available for subscription.”

“It will be a hybrid model that Rex has so successfully pioneered over the last two decades for its regional operations.”

As previously reported, Rex intends to follow up the expansion of its inter-city network with the launch of a frequent flyer plan

Lowering the cost base

While airlines around the world are slashing their fleets and laying off staff in an effort to conserve cash and weather out the pandemic storm, Rex is perhaps alone in embracing an expansionary mindset, let alone entering a toughly-contested market.

Rex’s investor presentation argues that the current climate is a favourable one due to “abundance of airport slots, infrastructure, aircraft, pilots, engineers coupled with ultra-cheap fuel.” 

“Usually the biggest obstacle to a new start-up airline is the absence of choice infrastructure – slot times, check-in counters and gates – which will not be the case here” states the presentation.

The impact of COVID-19, especially with Virgin Australia emerging from administration in a significantly smaller form, “has displaced a large number of skilled aviation workers that are seeking opportunities now,” the presentation says, adding that “pilots and engineers will also be queuing at the door.”

“Salary expectations will also be very constrained and a fresh EBA (enterprise bargaining agreement) will get rid of the decades of accumulated entitlements.”

Those EBAs would be “pegged at 10% lower than Jetstar”, the presentation says.

“Airport leases will also be hammered down as airports become desperate to generate enough revenue with the greatly reduced revenue.”

Also in Rex’s corner: lower oil prices following the pandemic outbreak make for a “significant reduction in single largest operating expense.”

Even in the face of what it describes as “moribund demand expected over the next 18 months,” Rex’s plan is that its new capital city arm “will have minimal overheads and will have capacity that matches the existing demand, and which is able to scale easily as demand returns.”

David

David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.

11 Jul 2020

Total posts 53

All the best Rex, but I'm loyal to Virgin Australia, all those years ago when they entered the aviation market as Virgin blue,  they made flying affordable for thousands of Aussies every year.

There will be some people who fly on price alone and that's your choice, but like me, there are some that are loyal to a particular brand, like I am with Virgin Australia and that's ok too.

& with recession starting to bite, more & more will be very price sensitive, but maybe not head for jetstar low frequency options.

XWu
XWu

09 May 2020

Total posts 174

I am sure some other travellers would agree that on routes in competition with QF, REx also help make flying to regional centres affordable (although for destinations with no QF competition their pricing do reflect QF monopoly, except I would say many of these routes do appear to run half empty for a 40-seat Saab)

The new VA will be a different creature as will be the 'right-sized' QF; you are welcomed to pledge allegiance to any airline but it will be an interesting 2-3 years when we see how the domestic market evolve, although I suspect no one here will swear by Jetstar or miss Tigerair as much unless they were flying certain special routes

xwu

minor correction. Saab 340 are 34, 35 or 36 seat. Rex's are all 34 except 1 or 2 they got, ex Vincent that are or were 36 seat, with smaller rear baggage compartment.

XWu
XWu

09 May 2020

Total posts 174

@ regular flyer

Yes thanks for that. I only remember that the Saab cannot be more than 40 seats which would trigger that airport security requirement 

And also that bit about rear baggage compartment, that their check in luggage allowance  is significantly less than the other airlines so anyone not used to travelling light or coming in from international flights with big heavy duty luggage can get caught out as I did once coming off an international flight straight to work in regional NSW

Qantas - Qantas Frequent Flyer

22 Nov 2019

Total posts 42

Go Rex, P1 here but status no longer means anything in the NEW Normal (thats public servant vocab)

Ill be on the first Mel to Syd !

26 Feb 2016

Total posts 1

It is a shame that they have not considered extending their flights from Brisbane out to Alice Springs, or Uluru.
I believe it would become profitable for tourists and locals alike.

ASP or Ayres Rock ? Think they would be low margin stuff, when airlines weren't busy like Sat pm/Sun am & late night.

Maybe stop on way to Per late at night only during week ?

Did fly Ansett Bne to Per 20 years ago via Ayres Rock(might have also been via Syd). Think Ayres Rock/Per sector was on a BAe146.

24 Aug 2011

Total posts 777

If it were a serious market, QFLink or JQ would already be there.  

24 Aug 2011

Total posts 777

With limited frequencies etc, 5-10% less than QF (the dearest in the market) doesn't seem enough to drag the volumes they are going to need....something's gotta give!

reeves35

who said anything about limited frequencies ?

With 10 aircraft, they could have same frequency at qantas, if only did BNE/SYD or SYD/MEL to start with.

24 Aug 2011

Total posts 777

Statement above clearly states they are looking to link MEL, SYD, BNE, CBR, PER and ADL so the pretext of your comment is wrong.  Even if it were true, OzJet tried this and failed.  If they were only to do one route QF and VA will flood market with cheap fares on the sector and Rex will be crushed.

reeves34

doesn't say they are looking to link all those cities straight away.

Maybe 1 route, then another, & add aircraft slowly. They don't even need to fly the triangle between 9am & 2pm Mon-Fri every hour, maybe just every 2 hours.

Ozjet were business class only, with no customer base at all, no gates, no lounges. Totally different. qantas also made a big deal about how old ozjet 732s were. Now qantas 737 fleet is almost as old.

24 Aug 2011

Total posts 777

Limited frequencies will mean Rex is of no interest to business travellers who like being able to move to a flight within 30 minutes of booked sector if needed.  Leisure travellers aren't so fussy but are much more price sensitive and more than happy to fly Jetstar or use restrictive QF or VA fares.

A limited number of planes and schedules mean timetable integrity is high risk.  As Tiger found with a relatively small fleet, delays knock on throughout the day and you end up with terrible on-time performance.  Business pax aren't interested in paying 90% of a QF fare for a service with awful OTP.

where do you get this limited frequencies idea ? 

Rex could have plenty of frequency & who knows how cheap rex will be. Their most expensive fare could be 10% less than qantas cheapest.

Am sure it will be very dynamic.

SYD/MEL qantas fares in economy vary from about $100 to $500. Same for BNE/SYD.

Qantas

19 Apr 2012

Total posts 1032

Reeves they will first hub with their regional flights to major cities  and then after that a lower frequency until their next hub flight. They will build on their own customer base first. They know how many connect elsewhere so easy to rejig a schedule.

XWu
XWu

09 May 2020

Total posts 174

@ patrickk

Agreed. In many ways I see it more of trying to get the business lost to VA pre-COVID for interstate capital connections since REx can tell what kind of traffic they are potentially trying to attract. (VA used to accept seamless checkin luggage for passengers transferring from regional ZL flights connecting to VA flights for golden triangle network)

With the new owners and the new business model at VA, plus new competition from ZL, I dont think the interline check-in will be continued as REx will need to create an incentive for regional travellers to use their interstate flight connection

Qantas

19 Apr 2012

Total posts 1032

There is gap from the map above in Townsville to Brisbane, needed to link the gulf country to the rest of the network. Whether a Saab is big enough for that is the question as a 737 may be too big.

XWu
XWu

09 May 2020

Total posts 174

@ patrickk 

TSV-BNE is a busy route and with VA and QF already competing, I am not sure how much appetite the REx have in focusing on routes other than golden triangle network, in the first couple of years

Also, I am not sure how that Qld govt underwritten remote destination network works, and whether if there is a REx flight between TSV-BNE, it will reduce the number of pax going through the middle part of that network and score an own goal in losing the Qld govt support due to “reduced traffic” on paper since the Qld govt doesn’t specifically “see” Qlder travelling BNE to TSV to use the REx network from the other end. Of course QF and VA already doing these routes but the pricing is a bit more than BNE to MEL costs so I am not sure how many people fly with them with such fares.

Qantas

19 Apr 2012

Total posts 1032

XWu good point and indeed having the Julia creek people going the long way round to Brisbane. I suspect they can’t do a Mt Isa direct for the same reason. The government subsidises the milk runs for a reason, and that ain’t Rex profits and the other two would scream blue murder.

Qantas - Qantas Frequent Flyer

30 Aug 2016

Total posts 8

Good on REX for trying this. 

Will be interesting to see how they go. 

If they can be better than Jetstar but not as expensive as Qantas then they will get business. 

Looking forward to trying them out when they fly out of Adelaide. 

XWu
XWu

09 May 2020

Total posts 174

As long as they dont try to price themselves in the same vein as full fare VA or QF, they will be alright. 

As you know, for REx their core (profitable) business so far is regional connection rather than interstate, and the triangle interstate route is the natural next step in expansion. If either the regional or interstate or both make money out of the new arrangement then its the way to go. 

Unlike others, I do not think it will make sense for them to chase international business nor join any international alliance for a long long time. Much of their current regional destinations are not on international tourist map and international business travellers to regional centres will hardly raise any interests unless they can find ways to charge the kind of business seat fares on the ATR/Saab, which of course they can't.

1A
1A

17 Sep 2019

Total posts 7

Qantas, Virgin and Jetstar will flood the market with the same or slightly lower fares than REX, and REX won’t be able to complain about predatory pricing. QF, VA and JQ will make it very hard for REX no doubt about that. However good luck to them, I hope it works out and a happy medium is found for all to survive and prosper.

XWu
XWu

09 May 2020

Total posts 174

If REx had their full fare lower than the most expensive excursion fares of VA and QF, I think they will do alright.

Even if their interstate business only break even but resulted in increased core regional business its still are win win situation for them, if thats their strategy as I suspect it should be.

1A

Rex won't be competing with Jetstar, but their fares could be similar. Jetstar will never ever have high frequency on triangle.

Qantas/virgin can't afford to discount on the triangle. That's where they make most of their profit.

Qantas/Virgin could offer right now $1500 credit for say $1200 (20% discount), which might stuff up Rex, but they will still have the regional feed, which will no longer go to qf/va, except if regional pax, don't mind checking in twice, when they want to use up their ff pts.

24 Aug 2011

Total posts 777

What do you mean VA and QF can't discount on triangle flights??  VA and QF discount all the time on these routes.  They offer heaps of restricted fares during off-peak times often for less than JQ have at the same time once baggage etc is taken into account.

Regional feed is not that amazing.  Take for example REX in Sydney; if they have 8 flights land in a bank within 45 minutes of a departure.  That is a maximum of 272 pax.  Assuming half transfer onto a connecting flight (seems optimistic) that means there are 136 pax available to transfer but REX has limited mainline routes so some of those 136 won't be able to use REX mainline and will leak to VA or QF.  So lets be generous and assume they retain 60% of the connecting pax so we are down to about 80 pax.  So if 40 of these go onto BNE and 40  to MEL, then only 22% of the plane is filled by connecting pax.  To get just 70% occupancy on their 737, they still need to sell another 100 seats on each flight. The challenge they face unless they are dirt cheap (ie less than JQ) is immense.

VA/QF don't discount much in peak hour silly !!!

Last minute SYD/MEL/SYD for a day trip can often cost more than SYD/LAX/SYD booked in advance.

Rex won't have limited mainline routes(triangle), with 10 aircraft & if they can do fast turns. Remember even SYD isn't going to be as busy as it used to be, maybe til middle of 2021.

Rex won't be competing wityh Jetstar, even if they have some similar fares.

Do you understand fare buckets ?

Sounds like you don't so see below. All 3 airlines have same fares, BUT % likely to differ

eg.

say SYD/MEL might look like (simplied) fare & % of seats at that price

QF $100/5%, $150/10%, $200/10%, $250/10%, $350/20%, $500/45%

VA $100/10%, $150/15%, $200/15%, $250/20%, $350/20%, $500/$20

REX $100/20%, $150/20%, $200/15%, $250/15%, $350/15%, $500/15%

Yield managers constantly change thesew, either automatically by computer or manually or both.

Am sure peak hour flights will be watched especially closely.

AT
AT

Qantas - Qantas Frequent Flyer

14 Sep 2012

Total posts 317

You nailed it, the challenge they face.......is immense”. 

13 Mar 2014

Total posts 7

Another airline... another dog fight, what's new.  Airlines fold quick in Australian skies, saturation 101, greedy execs an poorly managed.  

Now in 2020, QF is clearly bleeding money fast, VA has hit reset and JQ is QF's underdog to squash the competition. If REX goes Very LCC that would be interesting. 

Good luck to all airlines.  

29 Jan 2020

Total posts 21

Best of luck....with Qantas protecting their domestic market gold mine, and the new Virgin desperate to survive....12 months best case!

boeing 727

would give qantas more than 12 months.

qantas has to reduce costs & dumb unions will fight them all the way.

virgin is reducing costs

rex already has lowest costs & getting aircraft for a song & crews much cheaper than other airlines + already have feed from regions.

Think Rex might be number 1 or 2 on triangle after 12 months, but a few public servants would help.

XWu
XWu

09 May 2020

Total posts 174

@ regular flyer

You mean a few more public servants would help* since the political masters already did!

* in some other ways other than actually flying ZL

P1
P1

24 Apr 2017

Total posts 59

Shame they didn't pick up Virgin's Airbus's instead. It would have been a point of differentiation, and would have guaranteed customer with an aversion to Boeing and their failures.

24 Aug 2011

Total posts 777

VA aren't getting rid of their A320s.  They remain with VARA doing WA FIFO services.  TT are the only A320s going.

P1

A330s far too big fro BNE/SYD/MEL high frequency, plus airbus have also had their issues, mainly with software.

eg. Qantas QF72 from Singapore to perth 27DEC 08 (A333) made emergency landing at Learmonth

24 Aug 2011

Total posts 777

You pick one flight out of the thousands operated daily by A330s worldwide and conflate that to say that constitutes a software problem!!  

24 Aug 2011

Total posts 777

I think he means the A320s operated by VARA but they're not available anyway.

16 Dec 2016

Total posts 41

Don’t forget that Rex is a Singaporean owner airline with a leg up from the LNP. John Sharp will get anything he wants from the current Federal Government and Rex will continue to treat its staff like crap. I want the airlines to survive this crisis but only in Australia would a foreign carrier get to operate on the only truly profitable routes in the country. With the unions giving Virgin and Rex a free pass while going after Qantas I think we are going backwards. 

XWu
XWu

09 May 2020

Total posts 174

@ Markspark

Regardless of ownership concerns (at best the Singaporean ownership is not government based AFAIK) REx and its other co-brands is the few reasonably large independent airlines focusing on many of the regional routes snubbed by larger airlines. 

From some of the changes over the last few years, including withdrawal from certain routes and maintaining others despite problem (for example that 5 year old war with Dubbo council over security screening costs), much of their decision making is more about hard core dollar and cents and long term viability/sustainability rather than political or game play in hope for future growth.

I suspect they learned their lessons hard from their previous early foray servicing Canberra that their equipment, lounge and network will not attract public servant or large corporate business as much as QF or VA. 

So for me, the foreign ownership issue will take second place to providing proper competition and service to regional Australia, in areas not taken up by QF or VA. 

I wouldn’t be surprised if some of the proposed ATR capacity from the June 2020 MOU will involve taking over ex-VA routes like SYD-TMW, within 12 months if they can get their hands on the right equipment fast enough...... under 40 seat and the regional council sorting out their blanket security rule similar to DBO once the pain from QF monopoly sets (back) in within 6 months of open skies

Qantas

19 Apr 2012

Total posts 1032

XWu the Singapore ownership is interesting, not temasek (the govt investment arm) but a bio medical device company with 2 directors on the Rex board including the chair. Interesting to see if their are other links.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 250

It'll be interesting if the Singapore company behind REX and the SG government-owned Temasek (the majority owners of the state-run airline that previously owned a 20% stake in the failed VA mk 1) are willing to co-operate in the future.

XWu
XWu

09 May 2020

Total posts 174

@ patrickk

The NOT-Temasek (;)) owners is more than just interesting because they showed far more flexibility and agility in mid and late-2000 than anything related to Temasek in the same period (they were slow moving and are risk adverse but not sure about now, I don’t generally have much interest in 

Setting up their own pilot cadet academy when they are losing pilots to the 2 airlines, going for QLD underwritten remote network, willing to set up standalone bases in 3 states not linked to the main NSW VIC network (SA network eventually linked up as the network expands)

Mind you I didn’t know there are only 2 directors on the board but I trust your sources. Reminds me of TPG directors board..... sometimes it is great to build an empire without having to answer to regulators and external shareholders in current climate

Qantas

19 Apr 2012

Total posts 1032

XWu the Rex website has the list of directors. Not exactly’sources’.

XWu
XWu

09 May 2020

Total posts 174

@ patrickk 

Sorry I misread, I thought you meant there are only 2 directors on the board, whereas you meant 2 directors with biomedical links!

markspark

is wantus 49% foreign ?

Qantas - Qantas Frequent Flyer

21 Jan 2014

Total posts 272

Won’t be taking on anything unless they change their terrible website, it’s a shocker.

Qantas - Qantas Frequent Flyer

15 Aug 2020

Total posts 1

Their website gives you high blood pressure and has no CX 2 - 2 out of 10

Virgin Australia - Velocity Rewards

18 Aug 2020

Total posts 7

My concern is they will lose money hand over fist on this venture and then will threaten to shut down their regional network unless bailed out (again).

The $60 million in assistance is a real problem and seems to be firewalling ZL from the real problems other airlines are facing.

antysyd

mt concern is wantus will lose lots as can't compete with much lower cost rex & virgin & will threaten to shut down everything. Wantus will give thin routes to Alliance just like virgin did.

Etihad - Etihad Guest

19 Mar 2018

Total posts 53

Actually, I'm reading that they will have the market pretty much to themselves.

I heard that Virgin Australia will stay put in Brisbane and Perth, to feed select Star Alliance and Delta, while Qantas will largely focus on Perth and Melbourne. 

China Aviation notes that Qantas forgot to incorporate their critical corporate customers based in Singapore and have all but lost them, which is hurting the sustainability of Jetstar Asia, who operates all of East Asia's international routes. Qantas' Frequent Flyer has substantial flaws, one of which is that for it to work, it had to be a monopoly.

This is why Plaza Premium opening in DFW is such a big deal. Previously, there was no other choice. Now, you have a choice. I'm not too sure why the press release isn't being quoted but it states that REX's biggest USP will be the fact that its frequent flyer program allows you to pick and choose, and the biggest one being: lounge access. The program will be very similar to GOL Smiles I even wonder if maybe they're the same.

An innovation by Airport Dimensions called sleep n Fly that just debuted in the Middle East will allow REX to offer lounge access in major domestic destinations. 

XWu
XWu

09 May 2020

Total posts 174

I am surprised the number of readers posting REx’s potential international linkup and alliance from their recent move into interstate travel considering they still predominantly a regional airline and showed willingness to set up satellite large bases within the states ( like WA and QLD) with the right (government) incentives without connecting to the rest of their network. The natural next move for them is connecting those centres and the current pandemic crisis presents the once in a lifetime opportunity to do so with an ability to offer lower pay scale (and hence profitability) to unemployed airline staff.

Ok, their EPA threshold will not meet expectations of many ex-QF and VA staff, but I suspect they would be too far from many existing smaller regional airlines.

Perhaps other readers would like to share why they think REx’s next move will also involve international linkup or tie up (or world domination!)

XWu
XWu

09 May 2020

Total posts 174

Sorry I meant “ suspect they would NOT be too far from many existing smaller regional airlines.”

JKH
JKH

Qantas - Qantas Frequent Flyer

23 Sep 2017

Total posts 145

I’m sure they’ll get their staff but at 10% lower than what Jetstar are paying? Crikey!! Will the pay-packet include food stamps and shopper-dockets?

QF

11 Jul 2014

Total posts 505

Qantas have there customers that are loyal even though many P1 tell me the service and planes aren’t that good but they fly Qantas because it will be there in 10 years time. VA customers are disgruntled Qantas customers or younger travellers. Where will REX get their customers from? Jetstar or Tiger?

Rex already have their regional customers which qf/Va will lose.

A growing % will also be price orientated & that's not just leisure travellers. It includes small business owners who have to fly peak hour mon-fri.

I have 1/2 million qf ff pts thru credit cards, but i would never ever pay to fly qf.

QF

11 Jul 2014

Total posts 505

Time will tell the true story.

Delta Air Lines - SkyMiles

16 Oct 2017

Total posts 98

I'm intrigued by "LCC++ hybrid".  They won't be doing full service Business, I think that's clear.  Will they leave the VA J seats (if they get some of those) for the JQ style of Business-lite found on JQ international i.e. more comfort, few other frills? That could appeal to older travelers who would pay a bit extra.  And perhaps to business travellers without benefit of generous corporate/government funding? In Economy, a point of difference Rex could make would better seat pitch throughout than QF/VA. That could appeal to some business and some leisure travellers, especially at similar price to QF/VA at similar days/times. Don't know about lounges though - will cost a lot and maybe not much appeal to most  likely customers. 

tommygun

Will Rex do anything at all to ex VA B738s apart from paint out the Virgin name ?

& most don't even understand set pitch. It appears that many believe that greater seat pitch means more leg room, but this is only the case, when same seats are used.

Many carriers esp LCCs use slimline seats with thinner seat backs. This means they can either :

1) increase legroom with same seat pitch

or

2) maintain same legroom with less seat pitch

or combinatrion of both.

28 Sep 2020

Total posts 2

It will be interesting to find out where exactly the funding from PAG comes from because that could dictate the long term strategy of Rex domestic. On the surface, it seems that PAG is really good at picking high growth businesses to invest in and potentially sell it off when the price is right to then again move money to some other growing businesses. But please let me indulge in my fancy speculation. SQ / Temasek has always wanted to fly Australia to US. It was also mentioned that PAG manages funds from many sovereign wealth funds. So this could be an indirect further investment by Singapore, leading to an international service to the states codeshared with SQ or other star alliance partners and even sharing resources.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 250

"Australia to the USA" isn't the "money pot" as it used to be as it was in the 90s (back when SQ/Temasek expressed an interest in the route).  

SQ/Temasek may had wanted to fly (namely) the SYD-LAX route back when it was only QF and UA, but this ended when the entry of the initial Delta/V Australia JV and eventually AA into the market on top of the one-stop options from NZ and AC. 

There are also minor one-stop options from FJ and TN via NAN and PPT as well.

If I recall correctly, Both SQ and AC applied for 5th freedom rights on the SYD-LAX route back in the 90s, SQ was denied from both Australia and USA DoT, whilst AC was approved from the USA DoT, but still denied from the Australian authorities.

SQ could fly from any Australian port to any USA, Canada or Mexican port via somewhere like Samoa.

Thought maybe after Nok Scoot closed down in june/july 2020, that it might be ideal vehicle with A772s with 415 seats in 2 class. Virtually same as flying via NAN or AKL & with recession many want low fares which LCC could produce.

danv

FJ schedule before corona was

SYD/NAN/LAX daily with A359 all the way everyday except Tue. On Tue A359 SYD/NAN/SYD & A330 NAN/LAX/NAN as can't do daily with only 2 x A359s. Think they have 5 x A330s.

The beauty of FJ is you can upgrade from any economy fare straight to very good business class, by bidding online, on a sector by sector basis.


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