Originally Posted by
PoppaJo
The issue for Bonza will likely the same as Tiger. Now before we all get executed for bringing down the new guys, we all would love to see it succeed, but we have all seen the same thing before. Don’t blame us for being skeptical.
The issue is, the bigger they get, the worse the cash burn gets. The Pommy Management at Tiger had the idea, in that as they grew, it’s scale that now becomes key in reducing costs, so we are not going to spend anything. That idea actually cost them more, vs investing the required amounts as a small nimble carrier. It’s a bit like spending next months revenue to pay the previous quarters invoices. It’s catches up to you eventually.
The sweet spot will likely be around 15 aircraft. I don’t think they would be even able to get the engineering and flight ops capability to service such a number, happy to be proven wrong. I would look at investing in internal simulators right about now, tap off some government handouts like Rex has been done.
I Dunno, REX jet appears to be doing ok?
Aren't they?