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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 24th Feb 2022, 22:21
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Originally Posted by Icarus2001 View Post
Exactly my thoughts.
Also Qantas can put a 100 seat Ejet on there as well pretty cheaply.

The Bonza mantra is the same one Tiger had, growing a NEW market. Best of luck.
LCC’s can stimulate a new market, just look at Ryanair or EasyJet…. Offer $20 fares and the next thing guys in Hobart are holding their bucks night in Darwin.

But, and this is a massive but….

Australia is not Europe - average flights are not 60 mins, 20 minute turnarounds are a challenge at most airports and there are few ‘own brand’ airports near major cities, such as Avalon desperate to cut a deal.

Add to that the CASA cost of compliance, higher FTE costs (however much the industry may have taken a hit the guys and gals here are earning more than an average Eastern European).

Finally, you need to adjust an Australian travelling public to printing out boarding cards at home and effectively accepting a self service airline experience - good luck with that one, people are still getting their heads around Jetstar.

I’m short, LCC’s can stimulate new markets, but Bonza will never be a true LCC, and will fall short as some form of halfway house.
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Old 25th Feb 2022, 04:04
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Talking

Originally Posted by minigundiplomat View Post

Finally, you need to adjust an Australian travelling public to printing out boarding cards at home

.
What are these antiquated boarding cards? Most people these days seem to use their phone or watch
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Old 25th Feb 2022, 05:35
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Originally Posted by The Love Doctor View Post
What are these antiquated boarding cards? Most people these days seem to use their phone or watch
thats very true, but the Arthur and Martha that don’t have smartphones are exactly the same ones who’ll kick off when they are charged $40 to print a pass at the airport or check a bag.


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Old 25th Feb 2022, 08:09
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LCC’s can stimulate a new market, just look at Ryanair or EasyJet….
But, and this is a massive but….Australia is not Europe - average flights are not 60 mins, 20 minute turnarounds are a challenge at most airports and there are few ‘own brand’ airports near major cities, such as Avalon desperate to cut a deal.
So I think you just exploded your first statement, a $20 fare in Australia still leaves you in Australia, probably the same state.

Next.
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Old 25th Feb 2022, 08:24
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Probably the same city!
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Old 25th Feb 2022, 11:38
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Just found this thread and listened to the interview with Harbison.
Things that I noted;
1, His frequent use of the word "we" when ever he had to make a decisive statement ( sounds like he won't take ownership of decisions)
2.Use of the words "Our partners" (means they don't want to pay for services but , would rather work on commissions / percentages - they have little or no money).
3. "We are leasing from 777 Partners, who have the planes at a very good price" ( means to me that; 777 are maybe a " partner" and maybe not the parent company/ backer; great for 777 if they get paid higher rates than they pay but, see above)
4. He is hoping for 80-90% loadings, hope his break even is around the 50% mark and not 80% ( Tell 'im he's dreaming)
5. The word 'Bonza " hasn't been used in Australia since the 70's. He is a Pom and I can understand the out of date notions about Australian culture and sophistication ( Virgin "Blue" was another poor choice).
A more relevant name might be " Hipster Airlines" or "Woke" today, surely ( not that I would).
Starting an airline is very much more than just thinking of a name , places that are not serviced by airlines and having some "T" shirts printed for the interviews..
There generally is a reason why these places are not serviced by others.
6. He stated that "provided "we" do everything that we should in the eyes of the regulator, we will be airborne 2nd quarter of '22
( Buckley's chance of that.)
Even if all was in order, no way they can jump through all the hoops by 2nd quarter ( you want CASA to put in a fair day's work for $190 per hour ?) .
Has he thought about the minefield ahead ( obviously not)?
Pilot/FA/Groundcrew employment & training, training course approvals, aircraft registration ( hope that they are already here ) security, airport and route approvals, a reservations system, insurance, industrial relations ( that scourge of the modern times - HR) , realestate, remodeling, marketing, the list goes on.
Would probably take that much time to get ASIC cards issued.
Wish them luck but, someone once said that Australia can only support 1.5 airlines.
First there were many and that didn't work ( pre regulation), then there were two ( regulation) , then 3, then 2 , then 3, now 4 and he wants to go back to to 5?
I recall that he said that the population has grown by some mythical percentage since he started dreaming but, the rate isn't anything like 5/1.5 and, assuming that people will have money to spend on leisure travel ( because as he said , "they are not in business" - I thought the objective is to be in business).
We are about to pay for Covid for the next 1-2 generations through; unemployment, rising costs , rising taxes ( governments have been waiting for an opportunity to get the GST to their idea of "fair rates" say; 17 - 22% ) and stagnant wages ( unless we want interest rates to soar) and, he wants people to spend money on leisure flights.
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Old 26th Feb 2022, 23:35
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Originally Posted by Icarus2001 View Post
So I think you just exploded your first statement, a $20 fare in Australia still leaves you in Australia, probably the same state.

Next.
I’ve seen London - Bucharest fares with Ryanair for €1.49, and regular sales across Europe for 1500-2000km flights for similar. Aviation does exist outside of Australia….. but that’s a proper LCC, not the Diet Coke version you have here.

Next…
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Old 27th Feb 2022, 00:51
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Al oldie that sums it up perfectly...

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Old 27th Feb 2022, 08:36
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I’ve seen London - Bucharest fares with Ryanair for €1.49,
I am sure you have, tell me, how many seats were available at that price?
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Old 27th Feb 2022, 08:41
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Originally Posted by Icarus2001 View Post
I am sure you have, tell me, how many seats were available at that price?
on each flight of 189 - probably less than a dozen. But when there are 6-8 flights a day, those fares are accessible - and I speak as someone who commuted countries.

another thing Bonza won’t achieve other than SYD-MEL-ADL is frequency
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Old 27th Feb 2022, 10:05
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“probably” so you don’t actually know.

There may be four seats available at that price. Why not, the profit is already locked in.
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Old 27th Feb 2022, 21:29
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another thing Bonza won’t achieve other than SYD-MEL-ADL is frequency

In time of course, depending on their growth plans. They'll need to scale at some point to counter rising fixed costs as they age if they're to maintain some sort of sustainable yield whilst keeping these prices so low as they claim ($50 on short sectors and $100 on longer ones)...
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Old 27th Feb 2022, 22:30
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Worth investigating.
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Old 28th Feb 2022, 00:02
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As far as the regulatory approval side goes does anyone know when they expect to get those? 1st of type in country as well so that takes a bit of time I would expect. As for the business model well they may prove all of the critics wrong. We will see. Certainly they have the media impact to get something going it seems.
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Old 28th Feb 2022, 00:31
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Originally Posted by coaldemon View Post
As far as the regulatory approval side goes does anyone know when they expect to get those? 1st of type in country as well so that takes a bit of time I would expect. As for the business model well they may prove all of the critics wrong. We will see. Certainly they have the media impact to get something going it seems.
It’s not the first of type, it’s a 737 with different engines.
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Old 28th Feb 2022, 00:47
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Tiger had lots of media impact, even had their own TV show. Virgin was brilliant at media buying and PR stunts. It takes bums on seats paying a realistic fare.
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Old 28th Feb 2022, 02:45
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Originally Posted by Icarus2001 View Post
Tiger had lots of media impact, even had their own TV show. Virgin was brilliant at media buying and PR stunts. It takes bums on seats paying a realistic fare.
True, but Tiger also shot themselves int the foot with that, because the public saw all the operational problems there and it worked against their branding efforts.

Last edited by ebt; 28th Feb 2022 at 07:52. Reason: pickiness
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Old 28th Feb 2022, 03:15
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Originally Posted by troff View Post
Worth investigating.
777 are a PE firm, this is commonly known.
777 also owns a stake in ULCC Flair Airlines in Canada, as well as a stake in Asia's LCC based Value Alliance.

777 are the 3rd PE firm to have an investment in an Australian based airline, after REX (PAG) and Virgin (Bain).
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Old 6th Mar 2022, 23:27
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COO Departed

AFR reporting McNally and Bonza have parted company. No reason given.
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Old 6th Mar 2022, 23:55
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Great start.
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