Bonza has its AOC
”Via
777 are also looking at an investment stake in a Korean LCC. Interesting concept. Take a small stake in new startup or small airlines, make earnings via high re-lease rates, and interest on any loans. If the airline bleeds, or fails, 777 is likely still well ahead.
The only difference with Bonza vs its other investments, is they have full ownership. Profiteering from leased aircraft and charging high interest on loans, will bite them in the @rse if Bonza continues to burn cash. Seems like they will most certainly offload at some point. Remains to be seen who actually wants to buy a stake in it.
The only difference with Bonza vs its other investments, is they have full ownership. Profiteering from leased aircraft and charging high interest on loans, will bite them in the @rse if Bonza continues to burn cash. Seems like they will most certainly offload at some point. Remains to be seen who actually wants to buy a stake in it.
Last edited by PoppaJo; 8th Jul 2023 at 05:09.
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Bonza to axe five regional routes due to low patronage
Sunny Coast to Coffs and Port Maq were always 50/50 all being holiday destinations in their own right
Tamworth I thought would have done a bit better.....
Wellcamp to Proserpine was always wishful thinking, would have had a better chance doing Cairns
Cairns to Mackay competes with 3 daily 1 stop options QLink
Honestly thought they would cut more than just 5.....
Tamworth I thought would have done a bit better.....
Wellcamp to Proserpine was always wishful thinking, would have had a better chance doing Cairns
Cairns to Mackay competes with 3 daily 1 stop options QLink
Honestly thought they would cut more than just 5.....
It was inevitable. Not sure what kind of market research they were looking at, but those routes aren't going ones that people want to fly on. They can either continue like this and potentially disappear, or they can abandon their business model and try to rival JQ in the low-cost market. I just can't see any other way for them to stay afloat. They can't really go after VA, and they definitely can't go after QF. I don't think trying to compete on the golden triangle is a good idea, just look at Rex. Unlike Europe and the US, we don't have the population numbers for Bonza to make its current model sustainable, nor will tourists want to fly on these routes because there is nothing really to see in these places, plus it's currently too expensive to come here. I just think Bonza needs to do something, and quickly too.
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Bonza numbers have been very good on 90% of routes and with them cutting 5 routes, it'll free up the schedule for more stream line ops, resulting in better on-time performance and minimal cancellations. It shows that they are comitted and are active in bettering their product and performance for their passengers. Originally routes weren't going to be cut until at least August or Septemeber but the numbers on the routes being cut have been speaking loudly and it makes sense to step down from that, so they can invest in the more popular routes.
2 new aircraft should be coming at the end of August, if not before.
2 new aircraft should be coming at the end of August, if not before.
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I dont agree. Bonza's business model is very streamline and simple and it shows in the numbers they have been getting. Not all routes are popular which is why they are making changes, but overall i do believe Australia has the population to sustain Bonza and that the public will still use Bonza. It's been very positive so far.
It was inevitable. Not sure what kind of market research they were looking at, but those routes aren't going ones that people want to fly on. They can either continue like this and potentially disappear, or they can abandon their business model and try to rival JQ in the low-cost market. I just can't see any other way for them to stay afloat. They can't really go after VA, and they definitely can't go after QF. I don't think trying to compete on the golden triangle is a good idea, just look at Rex. Unlike Europe and the US, we don't have the population numbers for Bonza to make its current model sustainable, nor will tourists want to fly on these routes because there is nothing really to see in these places, plus it's currently too expensive to come here. I just think Bonza needs to do something, and quickly too.
Plenty of growth potential out there...
Just look at NTL MCY, Pelican had a go with 3-4 per week at 19 seats or 76 seats, AB are running over 720 seats and getting good loads
Then Mildura is getting 2 weekly with a population of under 35,000
Albury is getting 2 weekly with a population of under 100,000
Adelaide is 3 weekly with JQ with a population of 1,300,000
By this ratio if AB moved into Adelaide, on the numbers above could be running 4-5 daily