Aviation expert says Australia not big enough to support another airline

Bonza guarantees to be the impartial low-cost airline many Australian customers have prayed for, however some are questioning whether or not the market is big enough to host another participant.

Funded by US non-public funding agency 777 Partners, Bonza stated it could start flying from as early as subsequent 12 months utilizing Boeing 737-8 plane.

Its technique, in accordance to CEO Tim Jordan, can be to present routes into leisure locations the place journey is often restricted by connections by way of main cities.

But cracking Australia’s duopoly airline market is a job simpler stated than finished.

Bonza is backed by a US non-public funding agency and says Australia is a market crying out for a low-cost, impartial provider. (Getty)

Neil Hansford is chairman of Strategic Aviation Solutions. He has over 40 years offering marketing strategy assessments to airways, and says the deal with purely flying holidaymakers is not sustainable.

“The thing is, nobody will survive in Australia on flying just the leisure market. You need an element of the business market to get sufficient yield from your passengers,” Mr Hansford stated to 9News.com.au.

“You can’t just fill planes with 90 per cent of cheap seats.”

According to Hansford, Bonza’s headline technique of offering distinctive routes to regional communities has one main hurdle: the bodily dimension of the runways they intend to land at.

“The amount of airports that will be able to take the 737-800 in regional areas is low. It’s a whole different requirement for airports to take this aircraft compared to a Dash 8-400,” Mr Hansford stated.

“You need a 30-metre runway. Once you’re on the coast, you’re fine – we’ve upgraded the airports up and down the east coast. But Bonza is talking about operating to regional centres and certainly Rex is not going to give them any starts on home routes like Armidale, Tamworth and Wagga.

“So Qantaslink and Rex are seemingly to maintain onto passengers on these routes fairly properly.”

Baggage carousel for a  Jetstar flight from Adelaide to Sydney Airport. Tuesday 19th May 2020. Photograph by James Brickwood. AFR 200519
Jetstar is Australia’s low-fare carrier, but is backed by the resources and finances of big brother Qantas. (James Brickwood)

But Bonza’s CEO is confident that the Australian market is primed for a new competitor.

“Bonza’s mission is to encourage extra journey by offering extra decisions and ultra-low fares, notably into leisure locations the place journey is now usually restricted to connections by way of main cities,” Mr Jordan said at the airline’s launch.

“Bonza will ship monumental advantages to all Australians, however notably to regional communities by offering new routes and better journey alternatives.

“Bonza will also play a leading role in Australia’s post-pandemic economic recovery – creating jobs, stimulating travel and consumer spending and helping regional communities, especially those that rely on tourism, get back on their feet.”

Sydney airport
Bonza stated it could innovate by creating new, direct routes to vacation locations. (Mark Metcalfe/Getty Images)

Mr Hansford stated strategically, Bonza could take an curiosity in routes to the Whitsundays or picturesque coastal areas in Western Australia, however solely time will inform whether or not the passenger demand is excessive enough to support a separate provider.

“Australia is a very hard market to crack because we’ve only got 26 million people on the fifth-largest continent. And basically 70 per cent of us live on the eastern seaboard. That’s why it’s difficult,” Mr Hansford stated.

A century of Qantas: From outback airline to international big

“If you asked me for some odds of whether it’ll get off the ground – meaning a five or six aircraft fleet – I would give you odds of no greater than five per cent.”

Read Original Content Here

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top