Bonza has its AOC
I got a notification today on a social channel
‘50% off all flights for 2034’
Seems like it’s about to die.
‘50% off all flights for 2034’
Seems like it’s about to die.
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That's what a startup LCC with massive capital does, just wait, they'll be dominating Ryanair. And that's the tiny piece of the pie that Bonza wants.
Talk of a startup with massive capital is off topic for this thread given Bonza’s parent is struggling to pay for their purchase of the Everton football club!
Court filings obtained by FlightGlobal show that the dispute centres on three Boeing 737 Max 8s and a single 737-800 – respectively with serial numbers 61806, 64944, 61808 and 36548.
Irish entities Corvus Lights Aviation, Columba Lights Aviation and MAM Aircraft Leasing 4 are seeking a total of nearly $28.5 million according to filing to the UK High Court.
RyanAir took a not dissimilar hit but over a shorter period (two, as opposed to three years) with a faster recovery. RyanAir were more profitable last year than they were pre-pandemic; Wizz lost over half a billion euros last year.
That said, Wizz's H1 FY24 numbers are looking significantly better, so they will likely be back in the black in terms of profitability this FY.
Regards 'losing money on the balance sheet'; a bit of a terminological mash-up there. You would normally talk about losing (or making) money on the Profit and Loss (P&L) account, and losing (or gaining) equity on the balance sheet.
More to the point though, and as others have pointed out, Bonza is not following the traditional LCC path of no/low-frills offerings on largely established, usually high density, routes. Bonza is trying to create routes while deliberately steering clear of established, high density routes.
Bonza also decided to be "the first airline globally to take an app-first approach with the only place to book direct being the Fly Bonza app". Their app turned out to have more bugs than a mangrove swamp in January and is currently very poorly rated by users. Making it difficult to get money from customers is rarely a winning business approach.
The whole thing may work, it may not. Because of the opacity of their current business structure, at this stage most of us have essentially no good data to say whether it is or it isn't.
As the Zen Master said, "We'll see."
Interesting theory, largely unsupported by the financial data. For the past three years, Wizz has been losing money at the operational level (that is, before financing and acquisition costs are factored in). A fair chunk of their woes were undoubtedly related to the pandemic, some of their problems could be pinned on fuel costs, and the rest looked like just poor cost containment.
RyanAir took a not dissimilar hit but over a shorter period (two, as opposed to three years) with a faster recovery. RyanAir were more profitable last year than they were pre-pandemic; Wizz lost over half a billion euros last year.
That said, Wizz's H1 FY24 numbers are looking significantly better, so they will likely be back in the black in terms of profitability this FY.
Regards 'losing money on the balance sheet'; a bit of a terminological mash-up there. You would normally talk about losing (or making) money on the Profit and Loss (P&L) account, and losing (or gaining) equity on the balance sheet.
Wizz has been in business for over 20 years now. I think that they're well and truly past the start-up phase. And in terms of capital, Wizz itself has fallen into the red with equity standing at -€358 million.
More to the point though, and as others have pointed out, Bonza is not following the traditional LCC path of no/low-frills offerings on largely established, usually high density, routes. Bonza is trying to create routes while deliberately steering clear of established, high density routes.
Bonza also decided to be "the first airline globally to take an app-first approach with the only place to book direct being the Fly Bonza app". Their app turned out to have more bugs than a mangrove swamp in January and is currently very poorly rated by users. Making it difficult to get money from customers is rarely a winning business approach.
The whole thing may work, it may not. Because of the opacity of their current business structure, at this stage most of us have essentially no good data to say whether it is or it isn't.
As the Zen Master said, "We'll see."
RyanAir took a not dissimilar hit but over a shorter period (two, as opposed to three years) with a faster recovery. RyanAir were more profitable last year than they were pre-pandemic; Wizz lost over half a billion euros last year.
That said, Wizz's H1 FY24 numbers are looking significantly better, so they will likely be back in the black in terms of profitability this FY.
Regards 'losing money on the balance sheet'; a bit of a terminological mash-up there. You would normally talk about losing (or making) money on the Profit and Loss (P&L) account, and losing (or gaining) equity on the balance sheet.
Wizz has been in business for over 20 years now. I think that they're well and truly past the start-up phase. And in terms of capital, Wizz itself has fallen into the red with equity standing at -€358 million.
More to the point though, and as others have pointed out, Bonza is not following the traditional LCC path of no/low-frills offerings on largely established, usually high density, routes. Bonza is trying to create routes while deliberately steering clear of established, high density routes.
Bonza also decided to be "the first airline globally to take an app-first approach with the only place to book direct being the Fly Bonza app". Their app turned out to have more bugs than a mangrove swamp in January and is currently very poorly rated by users. Making it difficult to get money from customers is rarely a winning business approach.
The whole thing may work, it may not. Because of the opacity of their current business structure, at this stage most of us have essentially no good data to say whether it is or it isn't.
As the Zen Master said, "We'll see."
just remember you cannot sell $10 tickets for $9 and stay in business!
You can, but you have to keep subsidizing it somehow. That's how public transport works, or even the road system in reality, we all subsidize the roads through various taxes and therefore road transport can run much cheaper than if you paid full cost per ride. If 777 wants to continue to sell tickets at a loss to gain market share that's up to them, at present all the airlines except QF have backers with deep pockets, what they decide to do with their money is entirely up to them.
You didn’t mention that the big names behind Virgin 1 pulled the pin after major loses
777 Partners seems to have had a colourful past and many law suits over lack of payments
comparing a government body with a commercial company is invalid from an economics analysis as the government can print more money, increase taxes and charges almost arbitrarily.
You didn’t mention that the big names behind Virgin 1 pulled the pin after major loses
777 Partners seems to have had a colourful past and many law suits over lack of payments
You didn’t mention that the big names behind Virgin 1 pulled the pin after major loses
777 Partners seems to have had a colourful past and many law suits over lack of payments
Government assets are no different, if an asset becomes overly costly for no benefit to the public it generally gets shut down, like train lines were in the 80s. Now the government subsidizes private operators to provide public transport, and even roads, hence all the tollways.
Exactly right, no one knows what 777 are doing, after all they're trying to buy Everton FC, and a few other soccer clubs (aussie too!) and that bankrupt airline in Korea. They been propping up Flair for years, Flair been losing massive amounts of money. It's a mystery to me. All I know is there is a lot of coke being transported to Miami from South America.
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28 December 2023 - 650,000 pax flown https://australianaviation.com.au/20...oubters-wrong/
31 January 2024 - 750,000 pax flown https://australianaviation.com.au/20...sengers-flown/
So, an additional 100,000 pax for the 33 day period between those two articles. During that period the Bonz looks like they operated some 938 flights, meaning that they averaged 107 pax per flight.
31 January 2024 - 750,000 pax flown https://australianaviation.com.au/20...sengers-flown/
So, an additional 100,000 pax for the 33 day period between those two articles. During that period the Bonz looks like they operated some 938 flights, meaning that they averaged 107 pax per flight.
28 December 2023 - 650,000 pax flown https://australianaviation.com.au/20...oubters-wrong/
31 January 2024 - 750,000 pax flown https://australianaviation.com.au/20...sengers-flown/
So, an additional 100,000 pax for the 33 day period between those two articles. During that period the Bonz looks like they operated some 938 flights, meaning that they averaged 107 pax per flight.
31 January 2024 - 750,000 pax flown https://australianaviation.com.au/20...sengers-flown/
So, an additional 100,000 pax for the 33 day period between those two articles. During that period the Bonz looks like they operated some 938 flights, meaning that they averaged 107 pax per flight.
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