Each to their own but I'd back AQZ any day over REX. AQZ has a...

Each to their own but I'd back AQZ any day over REX.

AQZ has a strong presence in WA flying FIFO charters for mining companies. These charters are lower risk because AQZ doesn't need to worry about load factors and the charter income is adjusted for changes in underlying costs such a fuel and Government levies. In case you missed it, AQZ is based in Brisbane and has a very strong presence in Queensland flying both some RPT services and also mining charters. Here's the summary from the AQZ June 2020 year profit announcement:


Compare this to REX - I note the following extract from the June 2020 full year profit announcement:



AQZ has operated very successfully over the last six months without any hint of a Government bailout to keep them afloat. Their recent agreement to purchase 14 second-hand E190's for a bargain price provides plenty of scope for growth through additional FIFO charters, increased wet lease flying for Virgin, filling to void on routes that Virgin can't sustain a 737 on. AQZ is likely to either wet lease aircraft to Virgin or start services on their own utilising an interline agreement with Virgin. I don't know many local governments or passengers that would prefer to fly on a Saab 340 compared with an E190.

Meanwhile REX is betting the house (through using its existing Saab fleet as security) that it can take on Qantas and Virgin on the golden triangle routes and come out on top. While I'll take my hat off to them if they can succeed, I have little confidence that they will succeed where so many others have failed. Bain capital having shelled out a few billion to buy Virgin will surely have far deeper pockets than REX to withstand a price war. Qantas also will vigorously defend its market position.