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Old 8th Apr 2024, 04:05
  #870 (permalink)  
nomess
 
Join Date: Dec 2023
Location: Oz
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Originally Posted by ebt
But what it really needs is a set of E195-E1s or A319s that are/were cheap as chips, and run them for 10-12 hours per day, plus taking cargo, holidays and any other way imaginable to generate the revenue that allows you to sell cheap base fares.
Attempting to run a negative net debt operation off cheap as chips aircraft is a fine art that only the likes of Allegiant managed to have success with.

The only issue is, as mentioned above, you need to maintain low utilisation rates, otherwise costs will cripple you. Allegiant ran with about 5 hours a day usage. They have since been caught out by switching to mid life Airbus aircraft, with higher than originally forecasted costs, and have now started buying factory fresh in order to get some stability on expenses.

The biggest challenge for Bonza’s survival is simply getting the revenue high enough. That prospect is very challenging as the population catchments they are flying to are small. It’s clear as mud, the business model they are running today, will never be sustainable on the current network. So what is Plan B? Perhaps become a transcontinental operator, could be a gap in that area.

Nobody seems to like dealing with Perth Airport however.
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