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New 'Bonza' LCC launches middle 2022 with B737 MAX

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New 'Bonza' LCC launches middle 2022 with B737 MAX

Old 5th Jan 2022, 10:47
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Originally Posted by hyg View Post
I would have thought an operation like the US regional using smaller jets would've been much most cost-effective if they are looking to tap the regional markets while avoiding the big cities... but what would I know
I assume you mean the perfect regional jet like an EMB-145ER and run between major regional centers like Albury, Dubbo, PortMaquarie, Brisbane and Essendon and so on for low cost operation... Then give it a snazzy name like JetGo... You might be onto something... Why do I sense a disturbance in the force...Oh well must be outside of my goldfish memory of bad ideas.
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Old 5th Jan 2022, 10:55
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Originally Posted by T-Vasis View Post
If that presentation is anything to go by - they might be in big trouble. Very little substance. Crass commentry. Looked very unprepared. Quite a turn-off actually.
Don't nobody give up their day job or run off and get a type rating, you hear!
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Old 5th Jan 2022, 21:17
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Originally Posted by 43Inches View Post
I assume you mean the perfect regional jet like an EMB-145ER and run between major regional centers like Albury, Dubbo, PortMaquarie, Brisbane and Essendon and so on for low cost operation... Then give it a snazzy name like JetGo... You might be onto something... Why do I sense a disturbance in the force...Oh well must be outside of my goldfish memory of bad ideas.
jetgo had full loads and pax were paying a premium for direct flights. They just had a
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Old 17th Jan 2022, 23:28
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So their website says that “they will be revealing the location of their head office” soon and it will be in regional Australia.

Is there any sign of anything tangible. Not just a website and press releases?
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Old 18th Jan 2022, 04:38
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At the CAPA conference the BONZA spokesperson stated they will be generating a new leisure oriented market as opposed to taking share of the exisiting ones. Also at that conference there was a prediction that business travel will decline by about 30-40% and be slow to recover. Consequently, if the operators that focus on business travel lose 30-40% of their income what will be the strategy to make up for the shortfall? (place additional focus on personal travel or reduce capacity?)
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Old 18th Jan 2022, 05:20
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spokesperson stated they will be generating a new leisure oriented market as opposed to taking share of the exisiting ones.
As the new breed of managers say these days, let’s unpack that and see what it looks like.

Tiger tried a similar philosophy. What it means is that Barry and Kath who usually take the caravan to the coast for a holiday twice a year may be tempted into spending $99 each (plus bags, plus food) to fly somewhere more exotic like the Gold Coast.

So okay, a “new market”. Mmmmmm and when AJ and JH see the report on their desk that the new up start start up is getting good loads they will simply go head to head with them. Nothing the ACCC can do about that. Bring on competition blah blah blah.

I really hope I am wrong because we need more choice not less but I do not see a bright future.
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Old 19th Jan 2022, 01:33
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Iíd actually like to see Bonza succeed; for a country so dependent on air travel, Australia is overdue for a true LCC.

Unfortunately I donít think the required cost base can be achieved, and theyíll just accrue too much debt getting the blessing of CASA before they even turn a blade.
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Old 19th Jan 2022, 01:45
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True LCC- how cheap should flights be FFS! JQ sell them cheap and yes they charge for all the ancillary products because that’s how they make their money. Ppl want cheap airfares thinking $50 is to much to go ex SY to anywhere need to have have a look at themself. I hope Bonza don’t even get an AOC.
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Old 19th Jan 2022, 23:28
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Originally Posted by SHVC View Post
True LCC- how cheap should flights be FFS! JQ sell them cheap and yes they charge for all the ancillary products because thatís how they make their money. Ppl want cheap airfares thinking $50 is to much to go ex SY to anywhere need to have have a look at themself. I hope Bonza donít even get an AOC.
Debbie downer. You donít have to buy their tickets or work for them.
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Old 19th Jan 2022, 23:45
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Originally Posted by Mr Proach View Post
At the CAPA conference the BONZA spokesperson stated they will be generating a new leisure oriented market as opposed to taking share of the exisiting ones. Also at that conference there was a prediction that business travel will decline by about 30-40% and be slow to recover. Consequently, if the operators that focus on business travel lose 30-40% of their income what will be the strategy to make up for the shortfall?
I do tend to agree with that statement. The business environment has changed due to COVID. More people are using Skype, Zoom and Microsoft teams. There are real savings to companies by having people not travel. Flexible work arrangements also means less people are travelling for work and are instead working more from home. There will always be a business travel market, but it is unlikely to return to the good old days, not soon anyway. Some statistics are showing office high rise occupancy in some cities around the world at 40%. If you aren’t driving to an office, you are probably not flying between cities as much either. The two things to continue to watch over the next 6 months is rising inflation and oil costs. Brent crude is currently $88 per barrel. Let’s see how that goes if the warmongers choose to start another war in the Middle East. Wars are a distraction, plus the military industrial complex needs to be fed.
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Old 20th Jan 2022, 00:20
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Regarding fuel prices, here is a quote from an article on 5/1 in The Atlantic

The world has started to reduce its investment in producing fossil fuels. Right now, the worldís investment in oil and gas supply looks to be, somewhat shockingly, on track with a pathway of 1.5 degrees Celsius of global warming, according to the International Energy Agency. At the same time, the world is investing as much as ever in cars, power plants, and other products that use fossil fuels. That is, our investment in oil and gas demand still assumes a more-than-1.5-degree pathway. Consumers, companies, and countries seem to be assuming that oil and gas will be just as plentiful in the future as they are now.

The technical way to say this is that there is a mismatch between future oil supply expectations and future oil demand expectations. Letís call this Mismatch No. 1.

The other mismatch is between clean energy and fossil fuels. Even as the world ramps down its investment in fossil-fuel supply, it isnít investing enough in zero-carbon energy. According to the IEA, annual investment in clean-energy supply must triple for humanity to reach net zero by 2050. Thatís Mismatch No. 2: The world is preparing for a net-zero world on the fossil-fuel side, but not on the clean-energy side.

Put together, these mismatches suggest that, if nothing changes, we can expect energy costs to go up. In the medium term, companies and consumers are going to want more oil and gas than the market can reasonably provide, and the price of both will increase.Ē

*
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Old 20th Jan 2022, 01:25
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At the CAPA conference one of the presenters stated that the aircraft leasing companies experienced increased profitability during the Covid period. Does anyone have any evidence to support or refute that claim? If the leasing companies did experience an upswing in profits, how did that eventuate?
Additionally, another piece of fact or fiction I came across suggests that aircraft leasing companies own approximately 50% of airline operators. This was in the context of the driving influence behind the increasing demand for narrow body versus wide body airliners.
If you possess a sound knowledge on these matters, much appreciate if you would share.
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Old 20th Jan 2022, 01:50
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Originally Posted by Australopithecus View Post
Regarding fuel prices, here is a quote from an article on 5/1 in The Atlantic:”

The world has started to reduce its investment in producing fossil fuels. Right now, the world’s investment in oil and gas supply looks to be, somewhat shockingly, on track with a pathway of 1.5 degrees Celsius of global warming, according to the International Energy Agency. At the same time, the world is investing as much as ever in cars, power plants, and other products that use fossil fuels. That is, our investment in oil and gas demand still assumes a more-than-1.5-degree pathway. Consumers, companies, and countries seem to be assuming that oil and gas will be just as plentiful in the future as they are now.

The technical way to say this is that there is a mismatch between future oil supply expectations and future oil demand expectations. Let’s call this Mismatch No. 1.

The other mismatch is between clean energy and fossil fuels. Even as the world ramps down its investment in fossil-fuel supply, it isn’t investing enough in zero-carbon energy. According to the IEA, annual investment in clean-energy supply must triple for humanity to reach net zero by 2050. That’s Mismatch No. 2: The world is preparing for a net-zero world on the fossil-fuel side, but not on the clean-energy side.

Put together, these mismatches suggest that, if nothing changes, we can expect energy costs to go up. In the medium term, companies and consumers are going to want more oil and gas than the market can reasonably provide, and the price of both will increase.”

*
Easiest way to make the general public transition to another energy source, make the cheaper one more expensive. Whether that is right or wrong is another debate, but that is what is being said in that piece. Cost will push most of the public to accept the new technology, at least easier than trying to mandate stuff and looking the bad guy, let them think they are making a financial choice rather than ecological one.

What does that mean for aviation and especially leisure travel markets? One thing, more cost and getting used to less expansion and no cheap fares, good luck to any new entrants into the industry now.
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Old 20th Jan 2022, 06:42
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So a very quick search for data shows that despite a massive rise in the fuel price , there has been a massive rise in aviation activity over the last fifty years.

The sky is not falling. We are being manipulated…again.

This link shows that fuel is between 20-25% of operating costs depending on price, from IATA.

https://www.iata.org/contentassets/e...sheet-fuel.pdf

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Old 20th Jan 2022, 07:26
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Flight numbers are definitely increasing, however how many airlines went broke during that period. There is a very aggressive approach to expansion in the airline industry that is not sustainable as once you hit the wall of profitable routes and have to make money on existing networks it all falls in a heap. This is all in the mantra of keeping airline travel and freight as cheap as possible to promote globalised supply chains and tourism dollars moving. Aviation will quickly over the coming years move to where trains and shipping have dwindled to, the pandemic will give airlines the helping hand to move things faster in that direction. It wasn't that long ago in the scheme of things that we had trains with segregated seating, 1st/2nd/3rd class coaches, ships and ferries the same, now its all one ticket on the cheapest possible platform. I'm not including the floating and railed theme parks like cruise ships and others that charge extra not to go anywhere in particular.
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Old 20th Jan 2022, 11:00
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Aviation will quickly over the coming years move to where trains and shipping have dwindled to, the pandemic will give airlines the helping hand to move things faster in that direction.
Air transport WILL NOT dwindle, quite the opposite. The masses have tasted cheap international travel and they liked it, if air transport dwindles how will they travel?

It wasn't that long ago in the scheme of things that we had trains with segregated seating, 1st/2nd/3rd class coaches, ships and ferries the same, now its all one ticket on the cheapest possible platform.
Spoken by someone living in the bubble that is Australia. Try looking at Europe or India or Japan.

https://www.eurail.com/en/help/inter...-and-2nd-class

https://www.japan-guide.com/e/e2016.html

https://www.amtrak.com/guide-to-fares
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Old 20th Jan 2022, 11:26
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That was a slip, I meant general train and ferry travel. Not long distance travel such as city pairs. The dwindling was in reference to what is offered on such trips and accommodation, not that the service numbers themselves are dwindling. I traveled in Europe many years back, when they still had compartmented carriages and service staff, now that only applies to 1st class, which is a poor reflection of what 1st class used to be on trains. 1st class back not long ago was your own cabin, now its just a bigger seat, there are still sleepers though. Travel on local routes is vastly different to the high speed intercity routes also. Used to be commuter trains had the option of 1st to 3rd class seating. Deutsche Bahn operations are a bit hard to compare, as they are primarily government owned, we are not talking private companies here competing with each other.

Also important to note Amtrak is subsidised to the tune of $1.5billion USD, because no private company could provide sustainable intercity rail travel.
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Old 27th Jan 2022, 22:04
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Maybe adding 2+2 and getting 5 but appears Bonza posting for EoI from CASA rated examiners etc, CAE Parc.
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Old 27th Jan 2022, 22:27
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Leaving it all a little late for a Q2 take off right!
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Old 28th Jan 2022, 07:23
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Originally Posted by Mr Proach View Post
At the CAPA conference one of the presenters stated that the aircraft leasing companies experienced increased profitability during the Covid period. Does anyone have any evidence to support or refute that claim? If the leasing companies did experience an upswing in profits, how did that eventuate?
Additionally, another piece of fact or fiction I came across suggests that aircraft leasing companies own approximately 50% of airline operators. This was in the context of the driving influence behind the increasing demand for narrow body versus wide body airliners.
If you possess a sound knowledge on these matters, much appreciate if you would share.
If they did it was a pretty massaged way of doing it, methinks. Some of the major lessors trimmed their fleet or took large impairments at the start of the pandemic, which led to big losses in one period, but cleared the decks for greater profitability in future quarters/periods. On the flipside, the world's largest lessor of regional aircraft, Nordic Aviation Capital, filed for restructuring in Ireland and is not trying to tie up Chapter 11 restructuring in the USA, so it hasn't been a bed of roses for everyone.

As for the 50% of airline operators, I think what you may be thinking of is 50% of the in-service fleet of aircraft, which is about correct. Pre-pandemic it was between 43-48%, depending whose metric you looked at. Now I think the consensus is that it is just over 50% as more airlines moved to sale-and-leaseback financing to boost their liquidity. With most reserve banks printing money and sending interest rates to 0%, there has been a lot of cash looking for homes, and aircraft are one of the destinations that cash has ended up.
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