PPRuNe Forums - View Single Post - New 'Bonza' LCC launches middle 2022 with B737 MAX
Old 31st Oct 2021, 11:51
  #123 (permalink)  
43Inches
 
Join Date: Oct 2007
Location: Aus
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737-800/900 cost between $5000 and $10000 AUD per operating hour to run. The figure is wildly variable depending on mostly utilisation and economy of scale to bring down the huge fixed costs, but also sector length, crew cost and of course fuel price and maintenance. Council airport charges will be a couple of hundred bucks, security will be per passenger, which will be required at all ports due to the aircraft size. That figure does not include ground handling, airways, etc... The main airport costs will be the large end user ie Gold Coast or Cairns, who really won't give a dam about doing deals unless you are shuffling a lot of airframes in and out, one flight a day at minimum cots you will get shafted to freight apron with a container for check in, and still pay more than what QF do.

As far as head office costs, its more related to what CASA wants and the cost of compliance, what you want is irrelevant there. The next part is basing in the country you have to get people of high enough calibre to leave the city to work there. No point having a head office if its full of inexperienced monkeys with no idea. Just getting pilots to base in the country is hard enough let alone a high end business leader that's worth his salary.

Then you have to have a huge Marketing budget, LCCs require constant advertising to remind the public they are cheap, especially in the early days. No marketing, expect a dribble of passengers, that fluctuates with other airlines offerings. Anything is possible, but airlines are shoe string returns at best, in the Australian domestic market you are surrounded by large operators with economies of scale, meaning where you save in small streamlining, they save on just having lots of everything and bargaining power.

Good luck but all this sounds very naive.
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