Bonza Airline Discussion

[Chicken]

Why do airline CEOs and CEOs in general for that matter, have a different imagination of what their business is capable of compared to what it is actually capable of..?

It is actually pretty normal. People in leadership teams are people who say "Yes we can!", while people in Finance, Controls, and often ops and admin, are people who say "No we can't". 2 different personalities. Imagine if you have someone from Controls being CEO, that person would come up with a million reasons and problems for every single task.

So the question would be, why did Bonza try to go ahead and end up crashing into the wall (no pun intended). Did people not communicate to the leadership team? Or they were not convincing enough? Or people in the leadership team refused to listen?

 

[Flyfrequently]

It is actually pretty normal. People in leadership teams are people who say "Yes we can!", while people in Finance, Controls, and often ops and admin, are people who say "No we can't". 2 different personalities. Imagine if you have someone from Controls being CEO, that person would come up with a million reasons and problems for every single task.

So the question would be, why did Bonza try to go ahead and end up crashing into the wall (no pun intended). Did people not communicate to the leadership team? Or they were not convincing enough? Or people in the leadership team refused to listen?

With nothing much on free to air TV last night, watched 2016 series "Utopia", your reasoning above is very plausible @Chicken !
I hope at least they are able to honour what they are currently selling/promoting but only time will tell .
My brother is booked for end of February MKY -OOL......

 

[Mwenenzi]

They leased some Bonza 737s to a European carrier I recall, perhaps they are coming back.

Getting two new aircraft here in 8 weeks won’t happen when looking at the current backlog. They are still trying to get November builds out the door.

That won’t cut it. They need to be fined.

They have already released the March to September schedule, knowing that Flair then send aircraft back home.

So as far as I am aware, two new aircraft will be arriving in Bonza paint in March, with associated employees based at the airport.

I find that hard to believe as Boeing have no aircraft for Bonza in the near term. They are advertising again for OOL pilots and cabin crew online again.

Any aircraft will not be in Bonza's name.
Aircraft leasing companies order aircraft and options to order (to get in the queue). Then later find an operator. All about financial engineering and tax driven accounting in tax havens. New white aircraft can even go to a 3rd party for a paint and interiors.
Would be surprised if Bonza own anything of value outright, free of debt. Will owe a lot of $$$ to associated business (~ off shore shareholders)

 

[Saab34]

Flair has loans of $300m backed up, tied to 777, at 18%, currently they do not make repayments, according to the CEO, who also admitted the balance sheet is not in great shape. You can say that again.

Bonza likely tapping the same loan deal.

Flair CEO says airline flying high — enough to stave off ‘growing pains,’ large loans | Globalnews.ca

Flair Airlines CEO Stephen Jones says his budget carrier is at last running a smooth operation propelled by high passenger numbers.

globalnews.ca

 

[Albert Hoffman]

All about financial engineering and tax driven accounting in tax havens.

Which 666 oops I meant 777 partners is an expert at. Their main HQ is in florida.., says it all What's the white powder emoticon?

 

[FishFood]

Pay by credit card and not other forms of payment? Then can chargeback if service not delivered?

Isn't there a relatively limited charge back window?

Would probably pay to read my CC's T and Cs

 

[Flyfrequently]

Isn't there a relatively limited charge back window?

Would probably pay to read my CC's T and Cs

Often 120 days @FishFood

 

[There'sOnlyOneJimmy]

Isn't there a relatively limited charge back window?

Would probably pay to read my CC's T and Cs

And I wonder what happens with charge backs when the merchant is in some form of insolvency administration…

 

[elanshin]

So the question would be, why did Bonza try to go ahead and end up crashing into the wall (no pun intended). Did people not communicate to the leadership team? Or they were not convincing enough? Or people in the leadership team refused to listen?

It's hard to say as oftentimes the successful company sometimes has leader(s) that decide that the risk is worth taking when everyone else said no and it pays off.

That being said on average more often than not they fail at some point but thats the reality of things. It's extremely rare to have someone that is both charismatic with leadership qualities as well as an extremely strategic brain rise into leadership positions.

Not saying the average C suite is dumb, just that the truly successful ones that are built up usually have some of the smartest people around at the helm.

 

[Saab34]

They got margin hungry, well greedy actually, purely a desperate attempt to grab some robust yield.

Backfired and has likely cost tens of millions.

 

[Chicken]

It's extremely rare to have someone that is both charismatic with leadership qualities as well as an extremely strategic brain

Ah, so charismatic and leadership generally means no brain. OK!

 

[oz_mark]

And I wonder what happens with charge backs when the merchant is in some form of insolvency administration…

The cardholders right to a chargeback doesn't change. How the banks deal with it, who knows....

 

[p--and--t]

And I wonder what happens with charge backs when the merchant is in some form of insolvency administration…

Several years ago, but I booked the Rocky Mountaineer train service through a travel agent in Vancouver months ahead of time.

Around 6 weeks out from our departure I enquired via the website where are my tickets and got a canned response saying gone bankrupt, try my luck with the BC Tourism Authority insurance. I called and emailed them and they said I could only claim from them if I turned up on the day of departure and was refused boarding onto the train - hopeless for a foreigner on a tight itinerary with flights and cruises etc..

I lodged a chargeback with ANZ Visa with a copy of the website response and the email from the BC Tourism authority. The money was back in my ANZ Visa account in around 48 hours. I then booked the train tickets direct and the holiday was great.

 

[UP4014]

Why do airline CEOs and CEOs in general for that matter, have a different imagination of what their business is capable of compared to what it is actually capable of..?

CEOs are rewarded for pushing or 'stretching' the business to to more with less. Hence they are always the optimist.

 

[jb747]

CEOs are rewarded for pushing or 'stretching' the business to to more with less. Hence they are always the optimist.

And then they attempt to bail out just before their optimism is shown to be wishful thinking.

 

[UP4014]

And then they attempt to bail out just before their optimism is shown to be wishful thinking.

Well they need to get their bonus/golden parachute somehow.

 

[Saab34]

Chargebacks vary a bit. I remember reading on here or another site, that someone once tried it on Virgin, who then threatened to close the Velocity account if they proceeded.

 

[dajop]

Chargebacks vary a bit. I remember reading on here or another site, that someone once tried it on Virgin, who then threatened to close the Velocity account if they proceeded.

I’ve got a feeling that if the airline goes bankrupt that wouldn’t be such an issue … especially one without a loyalty program.

 

[N860CR]

The whole thing sounds a little like the Uber/Splend model. Splend (777 partners) leases to the Uber driver (Bonzas somewhat optimistic management team) at insanely expensive costs. The Uber driver gives it his best shot, but realizes after a while that the model doesn’t work. Uber driver pulls the pin, Splend has made a heap of money on massively high interest loans and then takes their vehicle back and leases it onto another schmuck who wants to try again (let’s call them Flair).

One of the arguments as to why they can’t fail is because 777 partners has a heap of money. I’d say that’s a good reason why they will.

 

[Must...Fly!]

If they go bust, I don't think it'll take long for someone else to try but with a better plan and perhaps a more right-sized fleet. The idea which many including myself doubted clearly does have potential to be successful.