Forum Topics AQZ AQZ $REX on the ropes, $AQZ opport

Pinned straw:

Added 5 months ago

Whilst $REX and $AQZ have different business models and client bases, i.e. Rex doing flights between capital cities (or was before EY were appointed as administrators) and also regional destinations (still operating) and Alliance focusing on FIFO and wet/dry leasing to almost anyone without bias, the current struggles at Rex must be seen as a great opportunity for Alliance.

After discussions with the TWU today, it was reported that as many as 610 workers will be laid off. Whilst this is horrid news for Rex, one of the significant roadblocks to Alliance and their switched-on management team kicking even bigger goals for their ever increasing fleet (and the spare parts business they are now renowned for both regionally and globally) is qualified personnel.  Assuming some of these could be secured via these proposed lay-offs, it can only be good news for MD Scott McMillan and his team.

RL portfolio holder only of $AQZ

Strawman
Added 5 months ago

I think you make a good point @lowway

We've got a meeting booked with Alliance Aviation Managing Director Scott McMillan next month, so I'll put that to him.

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lowway
Added 5 months ago

Can't wait @Strawman . Better not let Scott know I support a different rugby team in Brissie (Scott's a stoic West Rugby fan), but he is a good guy and a very smart MD. Should be a great session.

I reckon getting a real insight into their now substantial spare parts and services group (I think they are one of the largest Embraer spare parts suppliers globally) and the margins in that area might be interesting as well.

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