REX 0.00% 56.5¢ regional express holdings limited

News: REX Australian regional airline Rex approves plans for big-city operations, page-52

  1. 1,277 Posts.
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    Any more predictions ?

    From the article you quote .... " Sources suggest that Virgin is in the process of short-listing the aircraft it is proposing to keep, allowing lessors to offload those it has chosen not to keep on board to other parties, including Rex."
    .
    Basically what that is saying is that REX get to lease the dud 73's that Virgin don't want and would be happy to get rid of . Much as it pains me to say it ( cos i love boeing ) some 73's are pieces of junk and Virgin had their share of those .... the maintenance required is sometimes ridiculous and even just the range of standard spare parts needed to function is a huge cost , even given that REX would be able to loan / buy parts from QF and Virgin ( which both airlines are obliged to do ) but they do so at hugely inflated prices ( ie a 10c Oring would cost $100.10 ) . Just the initial start-up Engineering costs are going to need bucket loads of money and be very very sure that Virgin are not stupid and will not be over servicing any aircraft so REX will be getting them just before the point of major overhaul of components .
    Good luck to anyone investing here and the above is only my opinion ( based on over 40yrs working in Aircraft Engineering ) .
 
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