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John Sharp to be ousted from Rex??

Via the AFR:

Rex faces boardroom coup as Singaporean investors push to oust chair

Kylar LoussikianDeputy editor - Business

Jul 12, 2024 – 11.07am

The largest shareholder of Regional Express is pushing to turf the carrier’s entire board just one month after he was forced to step down as the company’s executive chairman.

Lim Kim Hai, a Singaporean businessman, had run the regional carrier known as Rex until June, when he abruptly left the board and handed day-to-day management to the airline’s chief operating officer, Neville Howell.

Mr Lim and his then-business partner, Lee Thian Soo, became shareholders in 2002, after Rex emerged from the collapse of Ansett, which had operated two regional carriers.


Lim Kim Hai stepped down as the chairman of Rex last month but has now called for other directors to go. Louie Douvis

Rex told investors on Friday that Mr Lim had called for a shareholder meeting to remove Mr Lee and the airline’s new chairman, former federal transport minister John Sharp.

The only director Mr Lim has not asked to be removed is Lincoln Pan, the nominee of PAG Asia Capital, a major private equity firm that has provided $150 million in funding to the airline. That funding agreement prevents Mr Pan being forced out.

That money was used to launch Rex’s new strategy, with the airline pivoting from an entirely regional operation to flying between Sydney, Melbourne and Brisbane – putting it in direct competition with larger rivals Qantas and Virgin Australia. In May, the airline launched its longest route, flying from Melbourne to Perth.

Despite a boom in travel after the COVID-19 pandemic, it has been a difficult period for Australia’s aviation industry. Bonza, a budget regional carrier which only launched last year, collapsed into administration this year. Meanwhile, Virgin Australia’s owner, Bain Capital, has struggled to re-list the airline on the ASX. It has more recently entered discussions about selling a strategic stake to Qatar Airways.

Rex did not respond to a request for comment on Friday.

The instability on the Rex board first spilled into the open in late May, when the airline disclosed it had been queried by the ASX over plans to acquire National Jet Express, the regional services arm of Cobham Aviation Services for $48 million.

At the time, the market operator asked Rex to explain why it did not disclose a relationship between Mr Lim and his brother-in-law. Between them, they owned 50 per cent of National Jet Express. Rex said Mr Lim’s relative was not a related party.

It is not the first time that the ASX has queried the company. Last year, Rex said it took a week to tell investors it would miss profit forecasts because it was waiting for the information to be “reviewed and confirmed” by Mr Lim.

Rex posted an after-tax profit of $14.4 million for the 12 months to the end of June 2023, although that was largely due to a $44.5 million upward revaluation of its National Jet Express holding. The airline recorded an after-tax loss of $3.2 million for the six months to December 31, while revenues increased 6 per cent to $353 million.

Rex shares were 0.5¢ lower on Friday afternoon at 60¢.

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