REX buys Cobhams FIFO Ops (NJE)
 

Rex has signed an agreement to acquire National Jet Express, the regional services arm of Cobham Aviation Services Australia.

NJE is the leading provider of fly-in fly-out services in Western Australia and South Australia and operates freight services from Sydney to Adelaide, Brisbane, Melbourne and the Gold Coast, as well as charter services to Papua New Guinea.

Regional Express (Rex)’s subsidiary Rex Freight and Charter has signed a sale and purchase agreement to acquire Cobham for $48 million.
According to a release from Rex, the finding will be provided by drawing down an additional $15 million under its convertible note facility with PAG and from its own cash resources to find 50 per cent of the purchase price.
The remaining 50 per cent will be provided by joint venture partners, one of whom is Rex’s chairman, who will be funding their 50 per cent share with private funds.

Rex’s executive chairman, Lim Kim Hai said FIFO services are expected to experience strong growth in Australia and this acquisition positions the Rex Group to participate in this booming sector.
“With this acquisition, Rex will have a FIFO arm that is simply unparalleled in Australia,” Hai said.

“NJE has a completely modern fleet comprising eight Bombardier Q400 turboprops and six Embraer E190 jets for FIFO work. Both aircraft types are fuel efficient, have enhanced operational reliability and low carbon emissions when compared with the predominantly 40-year-old Fokker 100s used by the other major FIFO operators.

“I believe that NJE’s modern aircraft fleet and its long-term customer relationships overlayed with Rex’s proven record of safety, reliability and cost efficiencies would propel NJE to be the premier FIFO operator in Australia.

“NJE will naturally be the partner of choice for resources companies all over Australia who have been crying out for so long for a FIFO provider that is able to address their triple priorities of minimal impact on the environment, comfort and safety of its staff and reliability of service.

“The joint venture will invest in modern aircraft and technology to enable NJE to expand from its traditional base of WA and SA and bring our unique brand of FIFO services also to Queensland and Northern Territory.”

The sale will be subject to regulatory approvals.

https://www.travelweekly.com.au/arti...y-out-airline/

Gets me with REX. Always crying out poor. Qantas did this Qantas did that we can't compete on this and that route, we are going broke.
Enter REX on the big stage with jets and now buying up other carriers. So how do they do it with NO $$$$$$, so they say?

Friends in high places......

According to Planespotters, Dash 8-300, VH-SBJ is owned by Cobham Aviation and is leased to Eastern Australia Airlines. That means that if the sale goes through Rex will be leasing an aircraft to a QANTAS subsidiary with a red kangaroo on the tail. How ironic. :)

SBJ has always been owned by Eastern Australia Airlines. It was leased to Cobham/NJE between 2009 and 2012 and is clearly stated in this link as ‘returned’ from lease.

https://www.planespotters.net/airfra...taslink/r758w1

Thanks for correcting my mistake, Rowan. I obviously didn't scroll down far enough and got confused between "leased by" and "leased to" in my mind when contemplating the possibility.

If successful REX will have an interesting fleet mix with B738, E190s, Dash8's & SAABs.

Will the SAABs be retired for E190s and/or Dash8's ?

Pre-Covid REX was talking with ATR about replacements for the SAABs.

Two very different markets served by two AOCs, I don’t think you will see any cross pollination of aircraft.

Yeah I agree. For one thing, I've not seen any indication that the Cobham operation will be rebranded as Rex - not ruling it out, but certainly wasn't mentioned in the press release, in fact I read it the opposite way with the repeated references to NJE will this and NJE will that.

At most, there might, might one day in the future be E190s used for some RPT services out of PER to points in WA and the likes of ADL, ASP, DRW.

Exactly, with the market bigger than a SAAB and not big enough for a B738.

I've also read that they picked up NJE freight ops as well which would include the B146's.

Well it is National Jet Express trading as Cobham.... so it may as well be NJE trading as REX.

The deal is for all the E190's, Q400's, and 146F's for 40 Million.

The deal does not include the 146’s, just the fifo assets

National Jet Express is reducing their Bae146 fleet by:

VH-NJQ being scrapped
VH-NJY withdrawn & up for sale
VH-NJP withdrawn & up for sale

These predate the above announcement

The deal includes FIFO and Cargo ops. This ops as National Jet Express AOC. The deal does not include the Dash 8 Customs operations.

Simple Flying article today.Part only.

Rex executive chairman Lim Kim Hai told Flightglobal that he expects the takeover to be wrapped up by September, and the [FIFO] unit will keep its branding and not fly under the Rex brand. He added it will be "run independently in as far as the customer-facing part is concerned." The Q400s and E190s are ideally suited to the demands of FIFO operations, which often require services to remote airstrips with various types of runway surfaces. Lim said NJE's fleet of Dash 8s and E190s are "the best, most modern aircraft that fly-in, fly-out customers would need."

Australia’s largest independent regional carrier Regional Express (Rex) has completed its acquisition of Cobham Aviation Services’ fly-in fly-out (FIFO) business and flagged its intention to capture market share from Qantas Airways’ Alliance Airlines and Network Aviation which mostly serve the mining sector using Fokker 70/100s.

Rex says in a statement to the Australian stock exchange today it has completed the acquisition of National Jet Express (NJE), Cobham Aviation Services’ fly-in fly-out (FIFO) business, and plans to grow and transform the business by expanding its operations into Queensland and the Northern Territory, two areas of Australia where Rex and NJE has little presence. NJE’s operations are concentrated in South Australia and Western Australia while Rex’s operations are concentrated in New South Wales, South Australia, Victoria and Tasmania.

Rex has, until now, failed to develop a strong presence in Queensland and the Northern Territory because these are big geographic areas. Rex’s fleet comprises of Saab 340s that lack the range to serve the longer routes in Queensland and the Northern Territory.

But NJE operates De Havilland Aircraft of Canada Dash 8-400s and Embraer 190s, aircraft types that have more range.

Rex executive chairman, Lim Kim Hai, says in today’s statement: “In anticipation of the surge in demand for NJE’s services, we are looking to lease immediately another two Dash 8-400 aircraft to add to its fleet.”

“We will continue to invest in new aircraft and technology to grow the business, especially in Queensland where resource companies have been facing severe issues with capacity and reliability in recent years,” he says.

Lim says Rex plans to use NJE to transform Australia’s mining charter sector.

“Resource companies all over Australia can now count on a modern, comfortable and environmentally-friendly fleet for their FIFO needs instead of relying on 30-year-old Fokker 100 aircraft used predominantly by the other operators,” says Lim, referring to Alliance and Network Aviation which primarily serve mining companies using Fokkers.

Rex announced in mid-July it had signed a sale and purchase agreement to acquire 100% of NJE for A$48 million (US$31 million) from international private equity firm Advent International, subject to adjustments for working capital and other matters.

The NJE business had revenue of A$142 million in 2021’s calendar year, Rex said.

It said it would fund 50% of the acquisition and its joint venture partners the remainder, giving both parties a 50% stake. One of the joint venture partners is Rex’s Lim who would be using private funds, it added.

NJE at the time had a fleet of eight Dash 8-400s and six Embraer E-190 aircraft.

They are now advertising for Captains,First officers and cabin crew BNE based.
They have said these 2 x Q400 's coming will have a new NJE brand.

I also read somewhere they are sourcing another 2 E190's.I cannot find this article so not confirmed.

LLoyd, I too have read that they are trying to get another 2 E190's

Thanks Brenden for that..Cheers.:)

Maybe of interest

https://www.falko.com/delivering-an-...ft-down-under/

^ that announcement was from Jun 2021

I have been told that painting of the aircraft in the fleet from Cobham to National Jet Express will happen soon locally. Will be Blue tail with NJE letters, Cobham removed and National Jet Express painted over and the E jets will get the engines painted blue. Will happen soon.

Here are the pics.

https://www.skyscrapercity.com/cdn-c...2-png.4454840/

Nice look !

I was wondering if REX would get a mention.

Where was that from Lloyd?

Maybe https://www.scramble.nl/civil-news/r...al-jet-express

Looks like the E-Series P2F has gone ahead

Embraer 195 AR 190.00370 PR-AYJ Azul Linhas Aéreas first in svc 12feb23 PLUGRU after paint into Mercado Livre cs and E-Class freighter conversion

Maybe of interest for NJE

From CH-Aviation

Australia's National Jet Express set to grow fleet

Details behind paywall

extra Q400's to be based in Brisbane

Any idea on when they may arrive at BNE thanks Brenden.:)

thks, Brenden

But who are they buying GAM???

July 1 is the set start date

Yep thanks Dylan:)


National Jet Express Wins First Mining Contract In Queensland And Announces New Base In Brisbane
16 May 2023 . 2 min read

The much-anticipated move by National Jet Express (NJE), a member of the Rex Group, into the Queensland market has begun with the signing of a long-term contract.

NJE today announced it had won a contract to provide services for BHP Mitsubishi Alliance (BMA).

"We are humbled to have been selected by BMA, one of the world’s most respected mining operators,” said Chris Hine, Chief Executive Officer and Managing Director of NJE.

"Their confidence in us is an endorsement of NJE’s position as a premium regional air service provider to the mining and resources industry.”

“We are happy to announce that we are now officially open for Mining and Resources business in Queensland. NJE will be operating a fleet of modern Dash 8-Q400NG ‘Next Generation’ aircraft, offering jet-like speeds while consuming 50% less fuel and emitting lower levels of carbon.”

NJE will initially procure two Dash 8-Q400NGs for Queensland. It will also establish a significant new operational base in Brisbane to support the expansion of its services.

“Many mining operators in Queensland have been reaching out to the Rex Group since its purchase of NJE in October last year, eager for Rex to replicate its hallmark standards of reliability, professionalism and safety into mining markets,” Mr Hine said.

“I see so much pent-up demand in Queensland for a premium mining and resources air service provider and the Rex Group will continue procuring additional Dash 8-Q400NGs to meet this need. We are also open to introducing the Embraer E190 jets in Queensland as we already have a large fleet of these on the West Coast,” Mr Hine added.

“NJE’s ability to start operations on 1 July 2023, less than six weeks away, shows the speed with which the Rex Group is able to respond to the often-urgent demands of the resources sector, whilst maintaining our absolute commitment to safety and on-time performance.”

The Rex Group is the biggest regional operator of Regular Passenger Transport services in regional and rural Queensland with 24 destinations. NJE will be able to leverage this expansive network to provide creative solutions to the air transport needs of the mining and resources industry located all over regional/rural Queensland.”
Network + TrafficAsia Pacific

Plenty of work for Dash8 drivers in Oz at the moment.

No new frames.

Redeploying a/c from SA & WA

There are new frames coming eventually https://asianaviation.com/national-j...in-queensland/

The last 2 paragraphs explains the issues of getting new aircraft.


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Australia's National Jet Express acquires two Dash 8-400s
Cobham Aviation Dash 8-400 Cobham Aviation Dash 8-400 © Cobham Aviation/Abra-Galena
21.05.2023 - 23:17 UTC

National Jet Express (JTE, Adelaide) will acquire two new generation DHC-8-Q400s after it secured a contract to operate fly-in-fly-out (FIFO) services for BHP Mitsubishi Alliance in Queensland, Australia. A fellow subsidiary of Rex - Regional Express (ZL, Wagga Wagga) parent Regional Express Holdings, National Jet Express will also open a new operational base at Brisbane International to support the expansion.

The two De Havilland Aircraft of Canada turboprops will arrive in Australia in time to begin servicing the contract on July 1 and will take the number of DHC-8-Q400s National Jet Express operates to ten. CEO and MD of National Jet Express Chris Hine said there is considerable pent-up demand in Queensland for mining and resources air services.

“Many mining operators in Queensland have been reaching out to the Rex Group since its purchase of National Jet Express in October last year," he said. The airline also has a fleet of six E190s, based at Perth International, which Hine says he is open to bringing into Queensland.

The BHP Mitsubishi Alliance is Australia’s largest producer and supplier of seaborne metallurgical coal and is jointly owned by BHP and Mitsubishi Development. It operates seven mines in Queensland's Bowne Basin and owns the Hay Point Coal Terminal near Mackay, approximately 1,000 kilometres north of Brisbane.

Purchasing National Jet Express in 2022 gave Rex - Regional Express an instant slice of the closed contract FIFO market previously dominated by Qantas, Alliance Airlines, and Virgin Australia Regional. Queensland is an Alliance Airlines stronghold, with that airline operating FIFO services to 15 airports in the state. Last year, Rex - Regional Express said it was keen to make inroads in the FIFO market in Queensland.

Earlier this month, speaking to ch-aviation, Rex - Regional Express Deputy Chairman John Sharp said negotiations were underway to secure several new National Jet Express charter contracts.

He said the problem wasn't securing the contracts, rather securing the aircraft to service the contracts. Referring to the DHC-8-Q400s, Sharp said industrial action in Canada was impacting the ability to get permits to fly aircraft out of the country. Sharp also said striking engineers at the Canadian aircraft manufacturing plants meant the work he needed to get done on planes before he could fly them out to Australia, wasn't able to get done in a timely manner.

"We've had industrial action in Canada on two fronts, both of which have affected the delivery of aircraft, and additional aircraft," he said. "When we get additional aircraft in place, we can operate more services."

First aircraft will arive into Brisbane a week before start date