Bonza has its AOC
Literally the only thing going for Bonza is that Flair has been reported to be on the verge of bankrupt for more than a year and even had aircraft repoed yet still manages to operate
The following users liked this post:
Bonza is currently flying its own aircraft from the Gold Coast, with both its dry-leased Flair planes otherwise occupied.
C-FLKC went back to Canada and has been operating for Flair since 8 March; C-FLHI has been parked up at MCY collecting seagull poop since 1 March.
The two wet-leased Flair 737 MAX 8s, C-FLKC and C-FLHI or “Matilda” and “Bruce” respectively, are shifting to a dry-lease arrangement, and will be operated by local crews from the Gold Coast.
Matilda has temporarily returned to North America to operate Flair flights, while FlightRadar data shows Bruce has not flown commercially since the end of February as it awaits recertification by CASA to fly under an Australian registration number.
Matilda has temporarily returned to North America to operate Flair flights, while FlightRadar data shows Bruce has not flown commercially since the end of February as it awaits recertification by CASA to fly under an Australian registration number.
The Canadians don’t appear willing to let it go from its register. They do have large debt tied to the government over there, might be something to do with that.
Likely have more pressing matters on the table at the moment vs worrying about those two aircraft. The longer it drags on, might indicate they are talking to a buyer. I still don’t know who in their right mind would be willing to chuck a few hundred million at this over the coming years.
Wasn’t Twiggy looking at buying an airline?
Likely have more pressing matters on the table at the moment vs worrying about those two aircraft. The longer it drags on, might indicate they are talking to a buyer. I still don’t know who in their right mind would be willing to chuck a few hundred million at this over the coming years.
Wasn’t Twiggy looking at buying an airline?
The following users liked this post:
Join Date: Jan 2017
Location: Australia
Posts: 5
Likes: 0
Received 0 Likes
on
0 Posts
As of a few weeks ago, they were still waiting for Flair to fix up the fuel bill. Not sure if that’s still the case.
They are really trying everything to avoid refunding, ie rerouting, put on a bus, credits, no guarantee of a refund, in some cases, no refund just a credit. Meanwhile a once prominent Jordan has gone into hiding it seems. Or trying to find some cash to see out the month?
It wouldn’t shock me if the revenue from your cancelled flight a few months in the future has already been spent trying to pay yesterday’s bills. It’s the only way places like this stay alive.
It wouldn’t shock me if the revenue from your cancelled flight a few months in the future has already been spent trying to pay yesterday’s bills. It’s the only way places like this stay alive.
Last edited by nomess; 24th Apr 2024 at 11:47.
The following users liked this post:
The following users liked this post:
If the sale gets "extended", you know they haven't hit their cash flow target.
I should caveat that by saying that not all "sales" are launched just to fix short-term cash flow.
Last edited by MickG0105; 24th Apr 2024 at 13:09. Reason: Added caveat
The pretty much industry standard fix for a pending short-term cash flow problem is to run a "sale" offering cheaper fares, available for a strictly limited period (48 or 72 hours), for flights as far forward as the punter can reasonably plan (next school holidays, for instance). Cash today, worries sometime later.
If the sale gets "extended", you know they haven't hit their cash flow target.
I should caveat that by saying that not all "sales" are launched just to fix short-term cash flow.
If the sale gets "extended", you know they haven't hit their cash flow target.
I should caveat that by saying that not all "sales" are launched just to fix short-term cash flow.
It’s a stupid game to play as you are constantly in sale and markdown mode, it’s a bit like rolling sugar hits. It’s very hard to move away from that and adjust to a normal yield growth strategy, something more sustainable.
It might keep you alive for a short period of time, until you then want to try and find someone to buy the place, or the fuel guy gets a sniff of it and wants payment on delivery. The pressure builds and it all falls apart eventually, that is the point they are at currently.
Not a good look when the cheap seats are discounted. Also too many horror stories from disgruntled passengers with cancellations left right and centre, no real comms and refunds!
There’s such a fine line between a journey towards a return on investment and a Ponzi scheme.
According to that site they are now only offering credits. That points to having no cash left. Assuming the priority for whatever cash on hand is leases, fuel and wages.
I would strongly advise anyone chasing a refund, try a chargeback or lodge a case with your state trading authority, it seems many are getting refunds successfully that way as any merchant will then be tied to a deadline by the said body. The QLD authority seems to be the most proactive with assisting passengers, many getting refunds in 2 weeks.
A lack of cash situation would also allude to trying to find a buyer, 777 Partners gains nothing if this is sent into administration with only crumbs left in forward revenue. Administration would likely mean liquidation immediately as the lessors take back assets and milk them for a healthy premium elsewhere.
I would strongly advise anyone chasing a refund, try a chargeback or lodge a case with your state trading authority, it seems many are getting refunds successfully that way as any merchant will then be tied to a deadline by the said body. The QLD authority seems to be the most proactive with assisting passengers, many getting refunds in 2 weeks.
A lack of cash situation would also allude to trying to find a buyer, 777 Partners gains nothing if this is sent into administration with only crumbs left in forward revenue. Administration would likely mean liquidation immediately as the lessors take back assets and milk them for a healthy premium elsewhere.
Unfortunately a lot of these start up airlines use forward revenue on future routes to prey on investors to make things look better than they are, when the yields will never be enough for a stable route structure that is not constantly expanding. Which in Australia there is only so much expansion available before you hit a wall of very low yield. When expansion stops the real returns are evident and investors scamper for the shadows.
Correct.
If you dial into the commentary pushed in recent times, it’s all about polishing a turd to would be investors who are next in line to keep a would be ponzi operation flourishing.
‘750,000 seats sold’, ‘Record numbers’ ‘Growth Growth Growth’, ‘Stimulating’ ‘Huge Demand’, ‘Unseen before’ ‘approaching breakeven’ ‘10 aircraft by years end’
Meanwhile someone then engages an administrator to ‘have a look’ inside, who are only interested in two things, cash on hand and days until insolvent.
If you dial into the commentary pushed in recent times, it’s all about polishing a turd to would be investors who are next in line to keep a would be ponzi operation flourishing.
‘750,000 seats sold’, ‘Record numbers’ ‘Growth Growth Growth’, ‘Stimulating’ ‘Huge Demand’, ‘Unseen before’ ‘approaching breakeven’ ‘10 aircraft by years end’
Meanwhile someone then engages an administrator to ‘have a look’ inside, who are only interested in two things, cash on hand and days until insolvent.
There's the big difference between a retail operation and a service operation with pre-payment. One you have already spent cash on the goods and just have to deliver for relatively small cost later, the other the cash is paid and the major expense for the service comes later at the time of delivery. Meaning there could be a year between the cash going in and the expense for that service being realized. With the prepaid option you do get more cash in hand up front before delivery, but that requires good management not to blow it on other stuff as well. It also means the cost of delivery could fluctuate wildly by the time it comes round to being used, where as pricing for held goods and services you can charge on the day of sale what you need to recoup costs. Again all requiring very shrewd management to ensure you don't go negative by the time the service is delivered.