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Rex 'well poised to face the many challenges ahead', forecast downgraded: chairman

28-Nov-2012 10:58 AM

Regional Express Holdings (Rex) deputy chairman John Sharp stated (27-Nov-2012) the carrier is "well poised to face the many challenges ahead" after reporting substantially improved results in FY2011/12, which included record profit before tax on the back of higher passenger revenue from Rex RPT operations, a turnaround in its subsidiary Pel-Air's performance, higher enrolment in trainee pilots at AAPAthe carrier's training academy in Wagga Wagga, and continuous cost reduction programmes. He added, with "world-wide demand for new pilots estimated at 20,000 a year, we believe that AAPA is well positioned to contribute strong earning streams to the Rex group in coming years". Meanwhile, Pel Air now has revenue streams from the Ambulance Victoria contract, while freight and defence business of the carrier remained strong, according to Mr Sharp. The carrier, however, downgraded its forecast for FY2012/13 to be 25-35% lower than previously forecast due to the carbon tax scheme, cessation of en-route rebate scheme, additional security costs and the expected economic slowdown. [more - original PR]