Interesting to see REX’s announcement today of a refocused regional strategy that seeks to move into the void left by Virgin’s withdrawal from a number of regional routes previously flown with their ATR 72 fleet. REX are brave (or stupid) seeking to take on QAN on more routes with a clearly inferior Saab 340 product up against Qantas links Q400’s.
As I have noted recently, the radio silence on a deal between Virgin and AQZ to deploy some E190’s on regional routes suggests that a deal may not be happening. Or maybe, it’s just a case of why announce to your competition what you’re up to in advance of actually doing it (noting AQZ haven’t yet got their E190’s flying)? The still reduced pax numbers due to COVID could also encourage Virgin to keep its powder dry until the market recovers.
AQZ Price at posting:
$4.23 Sentiment: Hold Disclosure: Held
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