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Spot on. The growth of the 737 network was meant to generate the...

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Jam737

6 Posts.

30/07/24

22:19

Post #: 74990964
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Originally posted by Sparktastic: ↑

REXs fleet of aging Saab 340's is likely fast approaching EOL. From what I've read, Saab doubled the airframe life from 40,000hrs to 80,000hrs back in 2016. At that time, many older airframes were already well over 40,000hrs, meaning that many (most?) 340's still flying will likely approach or exceed 80,000hrs before 2030. The entire fleet will likely need to be replaced in the next few years and while leasing is certainly an option, maintenance, tool-up and pilot training costs will be significant. A replacement for the Saab 340 doesn't leave you with many
options either. The ATR series doesn't have critical mass in Australia so this pretty much only leaves the Dash 8 2/300 that Qantas runs - Problem there is lack of production supply.

Even if REX dumps the 737's and goes back to its roots, it is likely looking down the barrel of significant Capex in the very near future.

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Spot on. The growth of the 737 network was meant to generate the revenue to allow them to replace the 340's. Without that, I'm not sure there's much of a future ahead. There's definitely no way Alliance would take the fleet on either, as others have suggested. The E190 expansion is enough for them to worry about for now.

REX Price at posting: 56.5¢ Sentiment: None Disclosure: Not Held
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