I think any plays like this has to be to the bone and agile. Very cost based focused and minimalist, expect to make a loss as small as possible for a while.
Rex can not get too big too far. Rex will need to be flexible and cut many flights, change them up to maintain viability and price competitive
Qantas will be losing money to and Virgin its just a question of when even if QLD gets behind it. Virgin cannot last even if QLD gets behind it and frankly it will just mean QLD is in more trouble as a government and state
Survival would be the key while providing an opportunity for greater expansion as things open up in 3-5 years including international. I think one area would be the budget service area and maybe a plane or two competing with Qantas on major routes like Sydney to Melbourne as a point of difference because there will be some customers that want to help a competitor thats sustainably can compete with Qantas and keep prices reasonable.
Virgin cannot be replicated in any foray IMO. No marketing costs, no bullshit gimmicks, no excess flights running at big losses, minimal bricks and mortar costs, just the basics, price, convenience, safety and a point of difference utilising the lowest cost options including different routes like what you refer to in your niche regional routes with demand meeting service requirements. All new innovations to drop costs should be explored
The headquarters in Brisbane is one of the reasons Virgin is probably not viable. Everything needs to be lower cost, overhead, overall operations, the lot, no waste at all for this is required to get up long term which I think it can because Qantas will have trouble to with greater capacity and overheads.
I think this is a chance because Virgin is a dodo, it is not a walk in a park for Qantas either and they may need to adjust considerably as well, and Qantas will probably prefer Rex competing as a smaller adversary than a bigger overseas player coming in that could wipe Qantas out.
This is the best window for Rex to expand, now or never provided Rex does not lose the plot and keeps being rational. Crisis creates opportunity
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