Ann: Rex Forges Multiple New Agency Partnership Agreements, page-2

This a a smart move by Rex but it does pose the following questions:

• How much commission has Rex agreed to pay these originator’s, presumably it has to be higher than what QF or VA are paying to get the originators to commit.
• Does the 10 year deal with Flight Centre also involve Rex making an up front payment?
• If these deals are going to more than double Rex’s current domestic Jet revenues from the current run rate, current revenues must be extremely poor.
• What is the passenger mix from these originators and will they lift average revenue per seat filled kilometre from the current passenger mix? For Rex jet services to survive, they can’t predominantly rely on the leisure market (especially with Bonza about to aggressively compete for the leisure traveller spend).
• Will the market share of these originators for domestic flights fall as the flying population becomes increasingly tech savvy and comfortable booking direct?