April 30th 2024.
The airline Bonza has been facing tough competition in the Australian market, but they have managed to offer flights to destinations that have long been ignored by established carriers like Qantas and Virgin Australia. However, recent events have raised concerns about the airline's future. Shocking cancellations and the sight of their signature purple and white planes being taken off the tarmac and repossessed have sparked fears that Bonza may be on the brink of collapse.
When asked about the airline's current situation, Matthew Findlay, a director at Ailevon Pacific Aviation Consulting, admitted that it was both unexpected and not completely surprising. He explained that investors are always looking for the best return on their investment, and they may have expected Bonza to have more time to prove itself in the market. Findlay also revealed that the airline had achieved impressive results in the past 12 months, with a significant increase in passengers on routes to regional cities such as Mackay, Townsville, and Avalon.
He pointed out that before Bonza's launch, only 18 passengers flew directly between Sunshine Coast and Mackay, but in the last year, the number had soared to over 45,000. For the Sunshine Coast-Avalon route, the numbers were even more staggering, with just over 180 passengers before Bonza and 50,416 passengers after their launch. Findlay attributed this success to Bonza's ability to tap into underserved markets and connect people to places they wanted to go.
He also acknowledged that there were concerns about the airline's viability, with some speculating that Bonza may have been unable to cope with the challenges of the market. However, Findlay believed that it was still too early to determine the airline's fate, and there may be potential investors who see the value in Bonza and its unique approach to domestic air travel.
Bonza's CEO, Tim Jordan, had previously expressed their desire to revitalize tourism in overlooked regional communities by offering flights to 27 destinations, 17 of which were initially served. Findlay noted that this strategy had paid off, with Bonza stimulating passenger markets in these areas, especially places that were not prioritized by Qantas and Virgin Australia.
Despite Bonza's apparent struggles, Findlay cautioned against assuming that their competitors were celebrating. He believed that Qantas and Virgin Australia would exercise caution in their actions, as they do not want to be seen as stifling competition in the market. Findlay stressed the importance of competition in driving innovation and meeting customer needs.
He also acknowledged that it was challenging to pinpoint the exact reasons for Bonza's struggles, as several factors could have contributed. The ongoing conflict between Russia and Ukraine had affected fuel costs, and the increasing cost of living may have discouraged people from traveling. Additionally, the outdated domestic take-off system at Sydney Airport had made it difficult for new airlines to compete with established carriers.
In an interview last year, Jordan had expressed Bonza's desire to operate out of Sydney Airport, as they believed they could offer flights to 20 destinations that currently have no low-cost options for Australian travelers. This would also open up new routes that are currently not served by any airline. The federal government is currently reviewing the airport's system to address the issue, and Bonza's parent company, 777 Partners, is evaluating its options for the airline's future.
Despite the challenges of starting an airline, Findlay believed that Bonza had made significant progress in its first 15 months of operation. He also acknowledged that it was becoming increasingly difficult for airlines to generate returns, making it a tough market for any new carrier. However, he remained hopeful that Bonza would find a way to continue serving customers and contributing to the Australian aviation industry.
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