Bonza Airline Discussion

[jakeseven7]

New airline Bonza cuts routes due to weak demand​

Australia’s newest airline, Bonza, will cut five routes from its schedule less than six months into operations due to a lack of demand and reliability issues on its more popular routes.

Bonza’s chief commercial officer Carly Povey sent an open letter to customers on Thursday to announce the changes to its route map, which will come into effect next month.

New airline Bonza cuts routes due to weak demand

The country’s newest airline is cutting five routes and reducing the frequency of some other services, blaming soft demand and reliability issues.

www.theage.com.au

 

[Saab34]

I would have thought they could re direct the Coffs flight to Melbourne, Tiger did operate this route and I recall Virgin did also.

I don’t think anyone would be surprised by those route cancellations. It does appear that Bonza is not going to be growing anytime soon, one extra aircraft at the years end ‘at the earliest’ seems a bit vague, and it’s clear this one will be a spare going off recent dramas.

 

[HS-TQE]

Considering the routes in question were regularly selling for $29, it's really no surprise those routes ended.

 

[Harrison_133]

Considering the routes in question were regularly selling for $29, it's really no surprise those routes ended.

Yep, but of course they’ll spin this as improving their operational reliability, and not them just cutting routes that were never going to consistently fill a 737…

I would have thought they could re direct the Coffs flight to Melbourne, Tiger did operate this route and I recall Virgin did also.

Probably don’t want to go up against the daily QantasLink service.

 

[Harrison_133]

In addition to the 5 routes being cut, there will be some frequency reductions on other routes. These haven’t been updated in the app yet, but some local news sites are reporting that they include Melbourne to Mildura (Wednesday flight cut) and Sunshine Coast to Newcastle, among others.

Something also not noted in the article above, the extra weekly flight on Sunshine Coast to Melbourne will be to Avalon, not Tullamarine.

 

[docjames]

It's hard to imagine they are profitable, and hard to see where sufficient revenue is going to come from to make a sustainable, ongoingly viable business.

 

[justinbrett]

It's hard to imagine they are profitable, and hard to see where sufficient revenue is going to come from to make a sustainable, ongoingly viable business.

My theory was they are just testing the waters to see which routes work and which routes don't, then they'll cut back and focus on the ones that make a profit.

Seems like they are starting to do just that.

As I've said countless times, choosing MCY as a hub was a stupid decision. The MEL routes will be a much safer bet.

 

[jakeseven7]

Blind Freddy saw this consolidation and every other airline boss predicted it as well.

They still may well survive but probably on much more ‘familiar’ routes I’m sure. What a surprise.

 

[dajop]

Yes, it seems the coast to coast routes really didn't work, no surprises there. But the south-north ones seem OK, - Albury, Mildura and Geelong and surrounding area residents all looking for a cheap holiday getaway in the sun, makes sense. Whether they are sustainable once the novelty where off is another question. Looking at pricing, ABX seems to be doing well and wonder if they'd be looking at other ABX routes (eg. OOL).

 

[Saab34]

Don’t Linfox and Co usually chuck a bit of cash around for airlines to be based at Avalon? Perhaps they might put the next base down there, in that press release it hints at a third base ‘possibly by the years end’

I think every man and his dog has done Avalon. Certainly seems to offer some incentives should one open a base.

 

[FlyingKangaroo]

Not exactly encouraging:


I can appreciate having to fine tune the network and recalibrate here and there but this ain't that.

 

[Harrison_133]

Not exactly encouraging:

View attachment 336409
I can appreciate having to fine tune the network and recalibrate here and there but this ain't that.

That headline is a little misleading. They haven’t paused bookings beyond late October. They never opened them up in the first stage. Agree though, it’s very late to be leaving it.

From what they’re saying on social media, they aim to open bookings in the first week of August for flights in November through to April 2024.

 

[FlyingKangaroo]

That headline is a little misleading. They haven’t paused bookings beyond late October. They never opened them up in the first stage.

Thanks for the additional context. Still not ideal then, but not as bad as the media implies (per usual).

 

[bfm]

Can not understand why Bonza hasn't hooked in OOL for northwards flights. OOL-ROK, for instance. But, also TSV, MCY, etc.

In fact, if they were smart, they'd do what overseas discount operators do, and begin at a south location and do very quick stops at non-capitals along the way; eg. CFS - OOL - MCY - ROK - TSV - CNS. Seems a no brainer for low cost operators, but !!!!

 

[dajop]

Can not understand why Bonza hasn't hooked in OOL for northwards flights. OOL-ROK, for instance. But, also TSV, MCY, etc.

I'd guess that they haven't been able to reach a satisfactory arrangement with the operators of OOL regarding fees. Otherwise it would be a no-brainer. Especially for the southern routes, like ABX and AVV. Don't think CFS-OOL would make a lot of sense, it's just a 3 hrs drive (tad under 300km).

 

[Saab34]

I think over time MCY will reduce to only CNS/AVV/ABX. The rest will be seasonal.

 

[jakeseven7]

That headline is a little misleading. They haven’t paused bookings beyond late October. They never opened them up in the first stage. Agree though, it’s very late to be leaving it.

Very very very late....

 

[aikman]

Isn't it better to release the schedule late so they can charge more.

 

[henrus]

Can not understand why Bonza hasn't hooked in OOL for northwards flights. OOL-ROK, for instance. But, also TSV, MCY, etc.

Because QAL who owns OOL is unlikely to give them essentially free airport slots. OOL has spent a fortune on the new international terminal but by the end of the year will lose all wide bodies except 3x weekly Air Asia A330's.

It's clear Bonza are getting a total bargain on airport fees when the previous Sunshine Coast Airport CEO has called the deal a "partnership". Early articles also had the Bonza CEO mentioning that airport costs came in as their biggest cost.

Exclusive: Bonza won’t deal with airports that don’t negotiate fees

Speaking on the Australian Aviation podcast, Jordan said airport fees are the “single largest cost” for airlines, and airports that want to benefit from Bonza’s low-cost leisure customers will need to offer competitive prices.

australianaviation.com.au

Mind you the Gold Coast airport currently publishes airport charges of $22.43 whereas the Sunshine Coast publishes $49.07 per departing domestic passenger (noting all airlines negotiate this), I'd see Bonza more likely to strike something with BNE publishes a charge of $22.66 indicating that OOL seems to price themselves at a similar price as BNE these days (I guess a small part of JQ moving most international services to BNE).

 

[dajop]

It's clear Bonza are getting a total bargain on airport fees when the previous Sunshine Coast Airport CEO has called the deal a "partnership". Early articles also had the Bonza CEO mentioning that airport costs came in as their biggest cost.

Probably a reason why MEL is the second hub, no doubt Australia Pacific Car Parks, which moonlights as a airport operator, has done a deal with Bonza to drive more traffic into their car parks, and get more throughput at the Shopping mall they operate in T4.