Post by corsair67 on Feb 21, 2006 18:49:14 GMT 12
Regional Express grew out of the ashes of Hazelton and Kendall - two airlines that suffered badly from Ansett's demise; so it's great to see they are doing so well in a very tough market. I love the SAAB 340, so that's even more reason to be happy if they want to purchase more, especially as there will be a few coming up for sale from Air Nelson soon?
Fleet expansion on Rex's radar
Steve Creedy
February 21, 2006.
REGIONAL Express (Rex) has weathered recent high fuel prices to unveil ambitious fleet expansion plans in the wake of a maiden interim result that saw net profit soar 244 per cent.
Revenue at Australia's biggest regional carrier rose a healthy 18per cent to $77.9 million for the six months to December 31, as passenger numbers rose 11 per cent to 584,000.
Continuing a steady improvement in profitability, the airline achieved a 17 per cent revenue margin to produce a $9.3 million net profit.
Officials said they were confident they would meet full-year predictions of $148.6 million in revenues and a net profit of $15.1million.
Rex flies 25 36-seat Saab aircraft and four 19-seat Metroliners, and officials believe there is enough growth to warrant the addition of up to five Saabs.
"We believe there's a potential in our market for up to five additional Saab aircraft," managing director Geoff Breust said.
"That relates to increased growth in our eastern markets and conversion of Metro to Saab flying."
Mr Breust said the airline - which operates in NSW, Victoria, South Australia and Tasmania - had no set plans to expand its route network, but was watching for opportunities.
He said a move into Queensland would be a major step for the airline but "always must be a possibility for us".
Yesterday's result was the first since Rex listed last November.
It comes despite the high fuel prices that have lopped millions from the bottom lines of bigger carriers.
Rex attributed the increase to steady growth in existing markets, yield improvements and continuing cost efficiencies.
It was also helped by a $1million contribution to its net profit from its 50 per cent stake in freight and charter operator Pel Air, which recorded a 41.5 per cent rise in net profit to $1.9 million.
Fleet expansion on Rex's radar
Steve Creedy
February 21, 2006.
REGIONAL Express (Rex) has weathered recent high fuel prices to unveil ambitious fleet expansion plans in the wake of a maiden interim result that saw net profit soar 244 per cent.
Revenue at Australia's biggest regional carrier rose a healthy 18per cent to $77.9 million for the six months to December 31, as passenger numbers rose 11 per cent to 584,000.
Continuing a steady improvement in profitability, the airline achieved a 17 per cent revenue margin to produce a $9.3 million net profit.
Officials said they were confident they would meet full-year predictions of $148.6 million in revenues and a net profit of $15.1million.
Rex flies 25 36-seat Saab aircraft and four 19-seat Metroliners, and officials believe there is enough growth to warrant the addition of up to five Saabs.
"We believe there's a potential in our market for up to five additional Saab aircraft," managing director Geoff Breust said.
"That relates to increased growth in our eastern markets and conversion of Metro to Saab flying."
Mr Breust said the airline - which operates in NSW, Victoria, South Australia and Tasmania - had no set plans to expand its route network, but was watching for opportunities.
He said a move into Queensland would be a major step for the airline but "always must be a possibility for us".
Yesterday's result was the first since Rex listed last November.
It comes despite the high fuel prices that have lopped millions from the bottom lines of bigger carriers.
Rex attributed the increase to steady growth in existing markets, yield improvements and continuing cost efficiencies.
It was also helped by a $1million contribution to its net profit from its 50 per cent stake in freight and charter operator Pel Air, which recorded a 41.5 per cent rise in net profit to $1.9 million.
