BONZA gone belly up - Opportunity for REX

12 replies

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

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

Member since 03 May 2013

Total posts 184

They needed EMB's or A220's at most for any hope of viability.

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

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

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

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

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

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 ?

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.

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 ?

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.

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

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

Qantas - Qantas Frequent Flyer

Member since 03 Jan 2014

Total posts 12

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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