Bonza Airline Discussion

jase05

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Same story from The Oz on line :

A new budget carrier called Bonza is being readied for takeoff as Australia emerges from the Covid crisis, in the hope of tapping into a market hungry for travel.

With a “thumbs up” logo and the backing of US private investment firm 777 Partners, Bonza will sport a fleet of Boeing 737s and focus on regional and leisure destinations.

...

Headed by former Virgin Blue alumni Rick Howell and Tim Jordan, the low-cost carrier was expected to begin selling seats early next year and be in the air by the middle of the year.

Mr Jordan, Bonza’s chief executive, said the airline aimed to introduce more Australians to low-cost air travel with fares expected to be 30 to 40 per cent below that of its competitors.

...

“From a leisure perspective, it probably means we’re not all that we can be in terms of the amount of domestic tourism-related travel across the country.”

Unlike other airlines operating in Australia, Mr Jordan said, Bonza would not be courting the business market or operating in the east coast’s “golden triangle”.
 
Well, this is a very strange name, and got me very confused this morning.

I heard about this on the radio, and I thought the new airline were to be called 'bonsai'. I was like, Japanese tree now are we? Okie ......
 
"The taste is in the pudding", Aust has had many airlines over the past few years.
Ansett/Compass etc, et al.
Have to wait and see if they make it.
Love the name though, real Aussie oi!
 
Yet another Private Equity owned and operated proposed airline.

2 PE-run Airlines (Virgin and REX) are enough, but do we need a 3rd PE owned and operated airline in Australia? That would be 2 LCCs, or 3 if you count VA as a LCC (I mean 'Value Orientated'™Bain) Carrier

As said with REX previously, Qantas only has to 'sit back and watch' their PE rivals try to destroy each other and not have to do much with the discounting unless if needed.
 
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While the airline will almost certainly fail, I wholeheartedly welcome its introduction as it will help spur a price war for a period of time, hopefully for long enough until the next competitor comes along.
 
ex Virgin Blue and ex-Cebu Pacific excutive Rick Howell alongside another ex-Virgin Blue employee Tim Jordan are heading up the 'Bonza' proposal with their American PE investors/owners according to 'The Australian' paywall article.

Howell and Jordan departed Virgin Blue when the SQ/EY/NZ et al consortium and Borghetti took over.
 
As in, 'Bonzer, mate'.
I have never heard of this saying. I had to look this up:
'example' : "been a bonzer day at the beach"
What?! I have never heard of someone saying this. Must be generational gap?! 😛
Ok I'll say it. Bogan airlines!
Now now now, if you call farmers, it won't end well 😉
2 PE-run Airlines (Virgin and REX) are enough, but do we need a 3rd PE owned and operated airline in Australia? That would be 2 LCCs, or 3 if you count VA as a LCC (I mean 'Value Orientated'™Bain) Carrier
This morning, the host Robbie Buck on ABC radio Sydney said that it would be flying to places like Tamworth, then he went "Tamworth?!"

So maybe this airline would like to be a smaller and more rural version of REX? Kinda like Airnorth etc?
 
One of the proponents was interviewed on ABC radio National this morning and indicated that they’d had discussions with CASA but not with any airport operators yet. He said when they did they’d be looking for some significant incentives from airports because “we think airport charges will (otherwise) make up around 25% of our costs”
 
If Tiger who had the lowest seat cost on earth couldn’t make the market work with the same extremely expensive equipment, what exactly do this mob think they can do?

The revenue and market targeted is much the same. It’s the same passenger. If you can’t get the revenue high enough you cant get it high enough. It’s as simple as that. That’s why Tiger tried Sydney, it was a effort to get its revenue higher to offset the equipment costs. Even then it was marginal with lack of scale.

Bizarre. Remember Tiger started off Melbourne to Rocky and Mackay?

You cannot get any decent revenue out of Leisure routes in this country to pay for MAX 8’s buzzing around.
 
Free article: New Australian budget airline Bonza hopes to start flying next year

Summary:
* Will seek regulatory approval for launch
* Plans to start with two to three 737 MAX planes
* Backed by U.S. private investment firm 777 Partners

By Jamie Freed

SYDNEY, Oct 12 (Reuters) - New Australian budget airline Bonza plans to start domestic flights with two to three Boeing Co 737 MAX planes from the second quarter of next year, pending regulatory approvals, its chief executive told Reuters.

The airline will be based in northern New South Wales or southern Queensland and focus on leisure-driven routes not served by rivals or are underserved, said Tim Jordan, Bonza's founder and CEO.
 
You cannot get any decent revenue out of Leisure routes in this country to pay for MAX 8’s buzzing around.

There are plenty of "alternative" leisure destinations in Australia (outside of CNS, OOL, BNK, MCY and HTI, - and HBA in summer) but they all lack the on the ground infrastructure (i.e. accommodation) to support growth in the market via LCC leisure traffic. My last comment notwithstanding, maybe there's an opportunity in the WA intrastate market, where QF has refused to send Jetstar.

Probably the most significant "new" LCC leisure route in recent memory for a leisure market (MEL-BQB) has been gazumped by Covid border closures and delayed a dozen times, and I don't think has even seen a single flight yet. Will be interesting to see how that goes.
 
So what wil be the speculation/prediction for this carrier within the next 2-3 years?

1. Bought by PAG/Rex and merged into REX?
2. Bought by Bain/VA for Tiger 2.0?
3. Acquired by any of the independent FIFO/Regional Carriers (Airnorth,Cobham)?

Or least likely option: Bought by QF Group and absorbed into QF Mainline as a base for QF ordering the 737MAX themselves (no separate subsidiary e.g Impulse or Network).
 

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