If you’re a regular reader, by now you’d be well aware of the rivalry between Regional Express Holdings (ASX: REX) and Qantas (ASX: QAN) because let’s be honest, I report on it nearly weekly. It’s almost worthy of its own column (editor, take note).
In this week’s installment, we discuss Rex’s most recent dig at the red kangaroo that was baked into their latest announcement, because the airline can’t resist an opportunity to stick it to their perceived opponents.
Rex reported a bumper start to the new financial year, with record high passenger numbers and revenue for the first month of FY23.
Regional routes held passenger numbers and revenue near identical to July 2019. Domestic routes held water too, with a pre audited base passenger revenue for July 2022 of $13.6m, a figure more than double the monthly average for the preceding three months.
The Airline also boasted its excellent on-time performance for June 2022 compared to its peers. Rex only cancelled 0.7% of its flights, compared to Qantas which cancelled 8.1%. Furthermore, Rex recorded an on time departure rate of 82.7% whilst their sworn nemesis came in at only 58.4%.
The return to normality has also prompted the airline to further expand their fleet, with a 7th Boeing 737-800NG to enter service shortly, with a further two having lease agreements finalised.
However, despite good results and a very real light at the end of the COVID infected tunnel, Rex just had to slip some anti- Qantas sentiment in there, playing up the victim card by mentioning the rivalry, yet again.
“Our great performance in the regional markets also validates our decision to stand our ground against Qantas, which flooded the market on marginal regional routes in an attempt to destabilise us,”said Rex Executive Chairman Lim Kim Hai.
“Not only did their plan not succeed, but we are now having record passengers and revenues on our regional network by concentrating on the larger regional routes in direct competition with them. Later this month, we will commence servicing Melbourne- Davenport, breaking QantasLink’s monopoly on the route for the last 17 years and we intend to fly to other regional cities that are currently monopolised by QantasLink.”
Need a bit of background? I figured as such…
Feeling slighted by Qantas, and labelling their behaviour as predatory, Rex made their dissatisfaction known when the airline giant began flying several routes already serviced by Rex.
Their qualms were heard by the ACCC but the Commission did not find Qantas in breach of any anti-competitive laws.
Consequently, Rex ceased servicing numerous routes that Qantas began flying.
So, why pull out of some routes where Rex held a monopoly for years and enter as the new player in others?
If you’re confused by their new offensive strategy, you’re certainly not alone…
Until the next ep I guess.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
Latest posts by Samantha Freidin (see all)
- Parkinson’s UK backs Pharmaxis with $5 million to slow the onset of incurable disease with ‘ground breaking’ trial - September 1, 2022
- How this company is developing medtech to support Indigenous community health - August 22, 2022
- A round of ap-paws for PharmAust, changing the ruff prognosis for dogs with lymphoma - August 17, 2022
Leave a Comment
You must be logged in to post a comment.