New 'Bonza' LCC launches middle 2022 with B737 MAX
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.
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.
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.
Next.
Probably the same city!
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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 The word 'Bonza " hasn't been used in Australia since the 70's. He is a Pom and I can understand the out of date notions about Australian culture and sophistication ( Virgin "Blue" was another poor choice).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.
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.
Next…
another thing Bonza won’t achieve other than SYD-MEL-ADL is frequency
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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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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.
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.
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 06:52. Reason: pickiness
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).
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).