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Gday raw. Yes, the economics in airlines industry has been terrible. The impact of having only 2 aircraft suppliers in the world, homogeneous product, tough competition with some national carriers being subsidised with cheap fuel with no control over a major expense item has led to dismal returns.

Rex is fortunate to have some but not all of the above problems. It does have good management but it can't detach itself from the economy of the regional areas. Weak regional economy compounded with cuts in government travel budget has led to a 8 year fall in passengers. So it has really been tough and it was only good management which kept Rex mostly in the black.