According to the ABC website, BONZA appears to have gone belly up. If true, this could present an opportunity for REX to recruit some more pilots, cabin crew, and maintenance staff. Maybe take over some of the leases for the Max 8 aircraft as well as take off and landing slots at Melbourne airport. BONZA never intended to be a direct competitor with Qantas and Virgin, but REX does. And while BONZA's demise will be a loss to the communities they served, a beefed up REX could use this opportunity to entrench itself as Australia's 3rd airline.
Blind Freddy could see that Bonza's business model was never going to work. Flying 737 MAX aircraft, once, twice or three times per week to regional centres was destined to fail.
I'd expect Virgin would be more likely to grab those planes and crew than Rex. They would use them on their existing routes though. As evidenced by their Adelaide - Bali route being suspended due to not enough available capacity.
Tiger had a better chance than Bonza, big planes in small markets. 90% of their routes had no flights for a reason.
Qantas, Jetstar and Virgin would have all the statistics on passenger volumes between all the destinations that they fly, if it could work they would operate the route!
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
I look at it the other way and think that there WASN'T a market for regional point to point routes. If prices had to be so low that it's not sustainable, then there's no market for it.
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
I look at it the other way and think that there WASN'T a market for regional point to point routes. If prices had to be so low that it's not sustainable, then there's no market for it.
Passenger numbers indicate there was demand - just not enough to consistently fill the 186-seat 737 Max 8. A smaller e-jet such as the Embraer E175 may have been better suited to the demand.
Their model was designed to unlock additional demand assuming a soft post-pandemic market. Instead, the industry was strained by diminished capacity due to people retiring, the rate planes could be taken out of long-term storage, revenge travel, constrained Boeing production. So the game became how to maximise revenue from each plane, pilot, cabin and ground crew. Flying budget regional routes was not the answer.
Ponzi scheme parent company didn't have the legs to get it through to profit unfortunately. Virgin Australia luckily could rely on deep pockets twice and the collapse of Ansett to establish itself.
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BONZA gone belly up - Opportunity for REX
Becky1
Becky1
Jetstar Airways - Qantas Frequent Flyer
Member since 04 May 2018
Total posts 25
According to the ABC website, BONZA appears to have gone belly up. If true, this could present an opportunity for REX to recruit some more pilots, cabin crew, and maintenance staff. Maybe take over some of the leases for the Max 8 aircraft as well as take off and landing slots at Melbourne airport. BONZA never intended to be a direct competitor with Qantas and Virgin, but REX does. And while BONZA's demise will be a loss to the communities they served, a beefed up REX could use this opportunity to entrench itself as Australia's 3rd airline.
dm12
dm12
Member since 08 Feb 2018
Total posts 202
Bonza has an unsustainable business model with big jets serving small communities. It was never going to last IMO
Rex would do well to stay far away from that model, and should focus on connecting through their major hubs I think
Joe
Joe
Member since 03 May 2013
Total posts 184
They needed EMB's or A220's at most for any hope of viability.
Ryan K
Ryan K
Qantas - Qantas Frequent Flyer
Member since 30 May 2013
Total posts 158
Blind Freddy could see that Bonza's business model was never going to work. Flying 737 MAX aircraft, once, twice or three times per week to regional centres was destined to fail.
Madhatter49
Madhatter49
Virgin Australia - Velocity Rewards
Member since 11 Dec 2016
Total posts 86
I'd expect Virgin would be more likely to grab those planes and crew than Rex. They would use them on their existing routes though. As evidenced by their Adelaide - Bali route being suspended due to not enough available capacity.
CorporateFlyer70
CorporateFlyer70
Qantas - Qantas Frequent Flyer
Member since 16 Mar 2020
Total posts 15
the planes will be going back to Canada, crews here to repossess and fly back - will be used most likely in N American market
Lmc
Lmc
Qantas - Qantas Frequent Flyer
Member since 09 Nov 2018
Total posts 49
Tiger had a better chance than Bonza, big planes in small markets. 90% of their routes had no flights for a reason.
Qantas, Jetstar and Virgin would have all the statistics on passenger volumes between all the destinations that they fly, if it could work they would operate the route!
wdeguara
wdeguara
Etihad - Etihad Guest
Member since 06 Apr 2012
Total posts 95
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
Ryan K
Ryan K
Qantas - Qantas Frequent Flyer
Member since 30 May 2013
Total posts 158
Originally Posted by wdeguara
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
jsims
jsims
Member since 05 Jan 2024
Total posts 2
Originally Posted by Ryan K
Originally Posted by wdeguara
Bonza may have gone but has it shown that there is indeed a market for regional point-to-point routes ? I notice in the aviation press that some routes were operating at 70-90% capacity. With Qantas' order of 29 A220's could it be they intend to service the demand that Bonza has uncovered with a smaller jet aircraft that arguably may be better suited to the role ?
abudhabi1
abudhabi1
Thai Airways International - Royal Orchid Plus
Member since 15 Jan 2013
Total posts 105
too big and Australia didn't have the population for more than two or three carriers.
russh7
russh7
Member since 22 Sep 2017
Total posts 9
Their model was designed to unlock additional demand assuming a soft post-pandemic market. Instead, the industry was strained by diminished capacity due to people retiring, the rate planes could be taken out of long-term storage, revenge travel, constrained Boeing production. So the game became how to maximise revenue from each plane, pilot, cabin and ground crew. Flying budget regional routes was not the answer.
drno
drno
Qantas - Qantas Frequent Flyer
Member since 03 Jan 2014
Total posts 10
Ponzi scheme parent company didn't have the legs to get it through to profit unfortunately. Virgin Australia luckily could rely on deep pockets twice and the collapse of Ansett to establish itself.