I note that Rex today started a game which by my read is putting...

I note that Rex today started a game which by my read is putting out feelers to see whether local councils in the ports dropped by Virgin will offer incentives for Rex to offer replacement services:

https://www.rex.com.au/MediaAndPressClippings/MediaReleaseList.aspx

The usual playbook in these scenarios is for the incumbent to announce they are ending services, wait awhile for public opinion to get outraged so that local councils feel the need to provide incentives for replacement services.

Given that AQZ has said it has immediate uses for four E190’s, my pick is that Virgin and AQZ are waiting for the right moment to announce that AQZ will take over these routes, operating them as Virgin codeshares. AQZ trying to let tension build and obtain the best deal they can secure from local councils before announcing. Rex’s announcement today is unlikely to gain much traction as passengers and local councils would surely rather see a E190 rather than a Saab 340 service. Virgin interline is also important, which is something Rex can’t offer.

Virgin has already said that AQZ will operate Virgin flights between Brisbane and Port Macquarie. Makes perfect sense that AQZ would also fly between Sydney and Port Macquarie.

I also expect to see some AQZ E190’s flying Virgin services to Canberra under a wet lease arrangement.