They did and the flights were always full to the brim.

I'm fairly sure that JetGo flew Albury/Gold Coast (not Sunshine Coast) which is likely a bigger market.

I feel they’ll likely be their own enemy. With 37 flights a week from the Sunshine Coast to obscure locations and a population of around 350,000, surely they’d take pax from themselves for these particular niche routes.
The others would still travel to BNE as they want to travel to a capital/overseas.

I can’t say I’d be travelling to Albury or alike for a holiday unless I had family or close connections there. Further couldn’t imagine 180 pax a week having these connections to fill these flights either.

A little further analysis by Dr Tony Webber @ https://www.linkedin.com/posts/drton...951891456-iMs3

So to make NTL-MCY work they would need to capture 50% of the market of all transport modes (including those who drive), and charge $113 average.

Bonza have stated fares of $50 average for short routes.

As for capturing 50% of the market? Good luck.

Spirit Airlines make close to 50% of their revenue from the non-airfare component, bags etc. You heard it here first, the airfare may cost $50 but a checked bag may also cost you $50.

Brand new Embraer 190-E2s I thought would of been the perfect aircraft for this outfit at 115 pax single class. Or better the E 195-E2s at 146 pax at 2 abreast. Passengers love these aircraft, however their objective is to pack a Max to the max. He says we won't be like Ryan Air or Wizzair though something like Allegiant. A sardine can is a sardine can doesn't matter what paint job is on the outside skin. Provide some pax comfort and they will want to come back.

Pax will happily sacrifice some comfort for cheap flights of less than 4 hours...

Pre-covid Wizz was filling 321's to Dubai every day with people willing to fly packed into a god awful sardine can with 239 seats...

So long as the flight and cabin crew conditions aren't at Wizz levels of can see things working out for a while if they can manage to fill the planes...

Jetstar will be doing that in their new neos to god knows where. Ppl will sacrifice comfort for a cheap ticket, they will still complain because the coffee is not free or they couldn’t get that over filled backpack in the locker to save the $60 checked baggage fee. My point is, no matter how cheap a flight is no one is happy. I’ve seen it all before.

How far will this mob go anyway, they won’t last long in my opinion. CEO TJ has said in a podcast he won’t deal with airports that won’t negotiate. Big players won’t lower their cost to suit Bonza.

The other thing that I find interesting is they seem to think they can capture the market of people that would drive. While the cost of fuel is going through the roof, currently if you plan on staying a week somewhere, you are paying as much for a hire car as the weeks accomodation. A lot of people are driving not so much because the airfares as too expensive, as so much as the hire cars are too expensive.

Perhaps this will change but still currently and remains an issue. Seems to be another elephant in the room when it comes to this area of the market.

In relation to non negotiating with airports, whilst the airlines in some places have been charged heavily, they still have a business to run as well, no point for them to have to employ more people etc if they can't pay their wages and make it worth their while. More 737s smashing into their low strength pavements isn't going to do anything for pavement wear and expensive repairs either.

for the destinations they listed, i would think your suggestions are more suitable given the population of most of those places

GT is at it again.


https://www.abc.net.au/news/2022-02-...ghts/100845278

Well, he was right about Cyrus being the successful buyer of VA. Oh, wait.

The point around growing the market is interesting because the market has not grown for the best part of half a decade, even with new routes, and Tiger growing to near 20 aircraft. If the market continues to remain flat for the foreseeable future, then all Bonza is doing is pulling passengers away from the others. It’s an interesting concept as the only way the likes of Jetstar and Virgin can counteract that is to join them in the regions and try to send them broke.

Travel will remain flat if prices like Car Hire remain 150%+ pre covid, Hotels price gouging in peak periods. It’s a $1000+ to hire a car at the moment for a week. Many are trying to gain lost ground from the last couple of years. We recently drove interstate as I refused to pay $1500 a week to hire a car, that was North coast NSW.

From GT'S article

"Evidence globally shows that when you do connect to towns or locations that have not previously been connected directly, then you triple the traffic on that particular sector."

If the route has never been serviced then the traffic was previously zero. so tripling it is?

3 x 0 = ?

Seems to be a wrinkle in the force in terms of logic from GT

There is a great example of the state of “journalism” in Australia, not one follow up question as to his logic flaw.

I hope they have hedged a good portion of their fuel at a reasonable rate. Yesterday oil spiked at $99 per barrel, then dropped back down to $96. Bonza should have included contingency plans in their operational structure for if there is another COVID lockdown event, war in the Middle East, Russia taking Ukraine and/or China taking Taiwan. All potential events that can affect oil prices and slice through an airlines bottom line.

I would be surprised if they are hedged. Most Financial institutions have moved out of Jet A1 Hedging during Covid. Those that have stayed will need to write some large contracts with associated premiums to stay in the game.

It's poorly stated but what he's likely getting at is comparing one or multiple-stop journeys compared to a nonstop. And some of that bears out with JQ's experience here where they have launched new routes that QF wouldn't have touched and built the traffic from there.

I still fundamentally can't see how they are going to be able to charge cut-rate fares with brand new aircraft that will be on high lease rates (cause that's how 777 Partners will make money on their investment in start-up phase) with 180-ish seats to fill, knowing that the moment any of their routes show some success that JQ or Rex, for that matter, will jump on it. Sure, they will be able to stimulate a level of traffic and a few routes may actually work. I just can't see how they will be able to keep is sustainable over the long run once the incentives run out.

But hey, good luck to them. I mean, who doesn't love a cheap fare?

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.