Rex Airlines's bosses are no longer on speaking terms, but they exclusively told Four Corners the inside story of their failed bid to take on Qantas and Virgin and just who's to blame.
There's a saying in the aviation business: when things go wrong, they go wrong very quickly.After almost two decades as a successful regional airline, it decided to take on the industry's big two: Qantas and Virgin .
The two men who built the airline and ran it for almost 20 years are no longer on speaking terms, but in exclusive interviews with Four Corners, tell the inside story of Rex's downfall, and just who they believe is to blame.Australian Financial Review: Louise KennerleyThe year was 2002. Plucky upstart Virgin Blue had entered Australia's domestic aviation market with great success despite the headwinds brought by September 11 and the spread of SARS.
" management style was, I would say … autocratic. I think he believed that he knew more than anyone."Four Corners: Mark HineyRegional councils have also been on the receiving end of "Lim bombs". When Dubbo council announced a $1.99 fee increase to help fund airport upgrades, Rex sent letters signed by Lim to 16,000 homes calling the council "either very corrupt or very incompetent" and threatening to stop flying to the city.
Data from analytics firm OAG Aviation shows that when the regional carrier entered intercity routes, Qantas increased the number of seats available with low-cost subsidiary Jetstar. The flying kangaroo also moved into 10 of Rex's regional routes."Without the profits from the regional, with domestic just starting off and obviously loss-making, there's just no way to make it."
"It is a domestic market where there are three or probably four other choices and people are savvy enough to know," he said. The matter is now in the New South Wales Supreme Court. In court filings, US company Jet Midwest alleged that Rex purchased four aircraft for a total of $US2 million in 2019. "When you accuse somebody of theft, it must mean that I come without your knowledge to take something from you," Lim said.Sharp said he was unaware of the situation involving the planes until the board received a legal threat earlier this year.Getty Images: Jenny EvansHe denied the Rex board had been asleep at the wheel.
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