RIP Bonza
Top Answer
30th Apr 2024, 21:04
Moderator
The number of airline skeletons in the Australian airline closet has inevitably increased by another one. A much larger closet is called for.
There are two factors common to almost all those skeletons - being grossly and obscenely undercapitalised and fanciful business plans based on totally fictitious, unachievable traffic projections. Anything to do with the business of aviation is very capital intensive, compounded by a low 25 million population with 70% plus domicile in three or four coastal cities and Australia being a very expensive tourist destination.
And unless an airline has cast iron operating cost guarantees from the aircraft manufacturers (which is most unlikely), forget the manufacturers aircraft operating cost projections, inevitably authored by Aesop himself!
I remember many years ago running into Bryan Grey at Brisbane Airport shortly after he formed Compass. When I asked how business was going, his answer "Loadings are great, load factors over 90%. On current air fares our break even load factor is around 115%". Having known Bryan for many years I was very surprised he didn't see an air fare war looming!
Even in a duopoly airline structure, since the demise of the two airline policy and legislated protection for the players, historically one of the duopoly airlines has always been financially disadvantaged, right back to AN - TN days and up to today's QF - VA.
Spanish philosopher and novelist George Santayana once wrote: "Those who cannot remember the past are condemned to repeat the mistakes (in the future)".
Bonza will not be the last skeleton into the greatly enlarged closet of demised airlines.
There are two factors common to almost all those skeletons - being grossly and obscenely undercapitalised and fanciful business plans based on totally fictitious, unachievable traffic projections. Anything to do with the business of aviation is very capital intensive, compounded by a low 25 million population with 70% plus domicile in three or four coastal cities and Australia being a very expensive tourist destination.
And unless an airline has cast iron operating cost guarantees from the aircraft manufacturers (which is most unlikely), forget the manufacturers aircraft operating cost projections, inevitably authored by Aesop himself!
I remember many years ago running into Bryan Grey at Brisbane Airport shortly after he formed Compass. When I asked how business was going, his answer "Loadings are great, load factors over 90%. On current air fares our break even load factor is around 115%". Having known Bryan for many years I was very surprised he didn't see an air fare war looming!
Even in a duopoly airline structure, since the demise of the two airline policy and legislated protection for the players, historically one of the duopoly airlines has always been financially disadvantaged, right back to AN - TN days and up to today's QF - VA.
Spanish philosopher and novelist George Santayana once wrote: "Those who cannot remember the past are condemned to repeat the mistakes (in the future)".
Bonza will not be the last skeleton into the greatly enlarged closet of demised airlines.
The parent company that owns the aircraft leased to Bonza has repossessed the Fleet. Bonza may be the meat in the sandwich here. Seems that company was not making the payments but Bonza was. I dont know who owns who.
In an interview with the ABC,a man from the Sunshine Coast, whose wife works for the airline, claimed 20 cabin crew were called into a meeting early on Tuesday and told the airline had “finished”.
“She went to work this morning, as per usual, they just went in — there were two crews there — they were just basically told that Bonza has finished,” he told the ABC.
“They’ve been told that they’re not flying until further notice.
“They’ve all been told that the bottom line is that Bonza will no longer be flying
“She went to work this morning, as per usual, they just went in — there were two crews there — they were just basically told that Bonza has finished,” he told the ABC.
“They’ve been told that they’re not flying until further notice.
“They’ve all been told that the bottom line is that Bonza will no longer be flying
Tim Jordan has been running an insolvency firm. Lies lies and lies for months.
Watch him try to blame this on someone else.
The following 2 users liked this post by nomess:
Are we really surprised? Honestly this was doomed from the start. All it did was give some jet hours to those that needed them and they can now move on to better prospects. Never been a better time to be made redundant.
The following users liked this post:
Weren't a lot of Bonza crew ex VA with a right of return? Hopefully can back into VA soon if that's the case.
Not quite, the Aircraft have been with AIP from day dot, with AIP being almost 50:50 owned by management and 777partners. On April 9 a new entity called phoenix aviation capital (interesting name) took over the 777 partners share. Phoenix is owned 100% by a U.S-based insurance and financial services holding company with approximately $11 billion of assets under management.
Those with short memories have probably forgotten Tim’s statement just before launch that Bonza needed a load factor of 80% to pay all the bills and was very confident that would happen.
making a go of a couple of routes won’t support a network. I saw his BP before he secured 777Partners and it was pitching rapid growth tapping un or non serviced markets.
shades of JetGo, Strategic, Sky World, Air Australia
making a go of a couple of routes won’t support a network. I saw his BP before he secured 777Partners and it was pitching rapid growth tapping un or non serviced markets.
shades of JetGo, Strategic, Sky World, Air Australia
Join Date: Mar 1999
Location: Someday I will find a place to stop
Posts: 1,028
Likes: 0
Received 21 Likes
on
7 Posts
Australian airline Bonza cancels all flights amid reports planes repossessed
Amelia McGuireApril 30, 2024, • 09:22am- All flights by Australian carrier Bonza have been cancelled.
- Reports say some aircraft have been repossessed.
- It is the first high-capacity, low-cost carrier to launch in Australia since now-defunct Virgin subsidiary Tigerair took off 15 years ago.
Passengers attempting to fly from the Sunshine Coast, Melbourne, Gold Coast and Avalon arrived at the respective airports on Tuesday morning to find their flights had been cancelled.
Bonza chief executive Tim Jordan apologised to customers in a statement and said he was considering the viability of the business, but did not confirm or deny whether any of its aircraft had been repossessed as reported by The Australian Financial Review.
“Bonza has temporarily suspended services due to be operated today (Tuesday April 30) as discussions are under way regarding the ongoing viability of the business,” said Jordan.
“We apologise to customers who are impacted by this, and we’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market.”
Australian discount airline Bonza is in strife after multiple domestic flights were cancelled.
SUPPLIED
Bonza has previously denied engaging restructuring firm KordaMentha to work on its future.
The airline launched its ambitious plan to fly to largely unserviced parts of Australia with low-cost fares in January last year. Since then, it has cut a swathe of routes last year due to a lack of demand in an attempt to boost reliability on its more popular services.
Bonza’s fleet was originally owned by its parent company, 777 Partners, but the private equity group’s creditors have since created a new vehicle which now owns the company’s 30 Max-8 aircraf
Over the past year, Bonza has been hamstrung by fleet issues, with multiple Bonza branded planes redirected to one of 777 Partners’ other airlines.
Bonza’s fleet of four Boeing 737 Max-8s has been struggling to service its route map and also cater to pilot training requirements. This has resulted in many frustrated customers experiencing last-minute cancellations or delays, while aspiring pilots are unable to complete their training as scheduled.
It is the first high-capacity, low-cost carrier to launch in Australia since now-defunct Virgin subsidiary Tigerair took off 15 years ago. It has positioned itself as a leisure carrier targeting tourism destinations in regional Australia, rather than competing with Qantas or Virgin, which service high-frequency routes.
Although it is a model that has worked well across Europe and Asia, critics have expressed concern Bonza’s structure is unsustainable due to Australia’s size and small population.
- Sydney Morning Herald
https://www.stuff.co.nz/travel/35026...es-repossessed
It’s a shame, I think it’s great they gave it a go. But sadly seems to prove that Australia just does not have the market to support another major(ish) airline. It’s now been tried more times than I care to think about and always ends like this.
Hope the staff all land on their feet quickly. As someone else said, it’s probably the best time to be a qualified jet jockey in Australia.
Hope the staff all land on their feet quickly. As someone else said, it’s probably the best time to be a qualified jet jockey in Australia.
The following 6 users liked this post by LostWanderer:
Very sad day for the staff and suppliers who are owed money as well as the public that even more so now are at the mercy of the Qantas close to monopoly.
The following users liked this post:
Commercial suicide not caused by those other parties.
the market speaks and those relatively small markets cannot sustain 185 seat jets that cost a bundle to run even with low maintenance but there are reserves and lease payments not to mention the fuel bills
the market speaks and those relatively small markets cannot sustain 185 seat jets that cost a bundle to run even with low maintenance but there are reserves and lease payments not to mention the fuel bills
Yes, looks like it's a bust. History repeats.
Sorry for the staff that have to find a new job, however, I assume the head honchos have managed to add a couple zeros to their bank balances during Bonza's existence.
Sorry for the staff that have to find a new job, however, I assume the head honchos have managed to add a couple zeros to their bank balances during Bonza's existence.
The following users liked this post:
Unlikely to see any new entrants for a long long time now. Financials will obviously be released shortly from the administrators, but the analysis I did in the prior month indicated it was bleeding heavily. That was at odds with Bonza had been claiming, and I held a strong belief they had been lying, to staff, suppliers and likely even its backer.
I do recall Tim Jordan tipped in some of his own cash, in the millions. I wonder where he sits on the creditor list.
I do recall Tim Jordan tipped in some of his own cash, in the millions. I wonder where he sits on the creditor list.
The following users liked this post:
The following 3 users liked this post by Ollie Onion:
One of Australia’s resident aviation expert has been busy hitting the airwaves, with the demise of Bonza.
Thankfully Australia has Qantasflot to keep us flying!
Remember how Qantas led by Geoff Dixon stepped up and saved the day when Ansett stopped operating. Brought a tear to my eye, not to mention the hip pocket!
RIP Bonza.
Thankfully Australia has Qantasflot to keep us flying!
Remember how Qantas led by Geoff Dixon stepped up and saved the day when Ansett stopped operating. Brought a tear to my eye, not to mention the hip pocket!
RIP Bonza.
The following 2 users liked this post by Stationair8: