Rex Airlines on the brink

 

To lose one commercial airline is careless; to lose a second one would be catastrophic.

Hot on the heels of the failure of start-up airline Bonza, Australian carrier Regional Express (Rex) is fighting for survival.

If Rex closes, the cost of airfares under powerful duopoly Qantas and Virgin Australia would almost certainly rise.

Rex is currently in a share trading halt and is trying to turn around some financial issues. It has not posted a media statement on its website for over a month and as of Tuesday afternoon its website was not taking bookings on some routes. 

Rex was predominantly a regional carrier until two or three years ago but has recently been operating in competition with Qantas and Virgin Australia on major routes.

The two big guns have a combined 93% of the market.

“One thing we need to do is to make sure that we have a viable and ongoing Australian aviation industry,” Australian Prime Minister Anthony Albanese said.

Albanese, unfortunately, often talks a good game but fails to deliver. There is no indication yet that he will step in. 

The PM said if Rex went under many outback and country communities would suffer.

“Rex is the only airline to go to some of those destinations, so it’s important,” he said.

Stay tuned.

Australian budget airline goes into voluntary administration after flights are grounded

The future of recently launched Australian low-cost airline Bonza is in doubt after it cancelled all its flights this morning and then announced it had gone into voluntary administration.

The company has appointed Hall Chadwick as voluntary administrators, the Australian Securities and Investment Commission said.

Early flights in and out of the budget airline’s base on Queensland’s Sunshine Coast were cancelled on Tuesday, along with routes from Melbourne to Rockhampton, Gladstone and Tamworth.

Last year, only a few months after launching, Bonza slashed several routes from its schedule, citing a lack of "sustainable demand".

Bonza CEO Tim Jordan said all services were “temporarily suspended” in a statement released on Tuesday morning.

Jordan said discussions were being held into the airline’s ongoing viability.

“We apologise to customers who are impacted by this and we’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market,” he said.

Virgin Australia offered free seats to anyone caught out mid-journey by the Bonza groundings, but many Bonza routes are not covered by other airlines.

Bonza launched in early 2023 and has recently been selling seats for as low as $49.

The Financial Review has reported an aviation source suggesting that the airline's creditors have repossessed Bonza’s fleet of Boeing 737-MAX 8 planes.

Transport minister issues warning to Australia's major airlines

Australian transport minister Catherine King has slammed the on-time failures of the country's two biggest airlines: Qantas and Virgin Australia.

King said the latest BITRE On Time Performance (OTP) report, for November, confirmed what many Australians would expect "with the lowest average on time statistics by airlines in over a year".

Small fry Bonza and Rex led the way for the month with on time performances of 73.9% and 70.5% respectively, while Virgin Australia was the worst performer for the month, with only 54.3% of its flights arriving on time.

Qantas saw 66.3% of its flights arrive on schedule.

"Across all airlines, last month’s average on time arrivals figure of 64.1% was significantly lower than the long-term average performance of 81.1%," King said in a statement.

The on time departures figure of 65.9% was also significantly lower than the long-term average of 82.3%.

Cancellations were at 3.7% for the month, compared with the long-term average of 2.2%.

"Given these very disappointing results, it is no wonder that so many Australians remain fed up with our major airlines," King said.

"Like all Australians, the Government wants an aviation sector that supports our nation’s way of life and this means services need to be reliable, competitive and affordable.

"That's why we have committed to delivering an Aviation White Paper, expected to be released in mid-2024, to set the scene for the next generation of growth and development across the aviation sector.

"This will include consideration of how we can better protect the interests of consumers, whether that be a stronger ombudsman model or other measures implemented in overseas jurisdictions.

"As Australians gear up to travel for Christmas and the holidays, the Government will be keeping a close eye on the performance of all our major airlines."

Image: Louis Loizou, Scop.io 

Bonza to link Launceston with the Gold Coast

Tasmania is becoming more and more connected.

Low-cost airline Bonza this week announced it will connect the Gold Coast to Launceston (above) for the first time with year-round flights starting in November.

The unveiling of Launceston as a destination marks the Tasmanian debut of Bonza, and is the 18th destination for the carrier which launched this year.

From November 21, travellers will be able to fly directly between the Gold Coast and Launceston three times a week on Tuesdays, Fridays and Sundays, with prices starting from $79pp via the FlyBonza app.

Launceston Airport CEO Shane O’Hare said the new route will open up more leisure opportunities for Tasmanians searching for a holiday in the sun.

“These year-round services will make it much easier for Tasmanians to enjoy Australia’s favourite holiday hotspot, but it also opens the door for thousands more tourists from south-east Queensland and northern New South Wales to visit our state,” he said.

Bonza CCO Carly Povey said the carrier’s buzz is already reaching Tasmanians, who have downloaded its app 11,000 times, adding “there will be more destinations for Launceston, and Bonza’s wider route map, to come”, with details to be revealed “when the time is right”.

The flights are still subject to regulatory approval but they must be confident as tickets are already on sale.

"This is good news for Aussie travellers and the many small-to-medium businesses who make up the local tourism and hospitality industries,” Povey added.

Launceston is a UNESCO City of Gastronomy and a gateway to nature experiences including Cradle Mountain. It is thee first destination outside of Australia’s East Coast to be added to Bonza’s network.

Bonza jumps on the Matildas' bandwagon - but leaves it too late

There is nothing like jumping on a bandwagon to seek some publicity.

And it is even more obvious when you time your stunt just a day too late.

In celebration of the Matildas' World Cup semi-final appearance, Australia's newest airline Bonza has promised to name its next aircraft 'Matilda'.

The airline with an eye for bogan appeal also has four aircraft named Shazza, Bazza, Sheila and Malc.

The fifth plane, due to arrive next year after the airline's Gold Coast base launch, will have Matilda painted on its side.

“Like the rest of the nation, our team of legends have been gripped by Matilda Mania thanks to their sportsmanship, mateship with one another and their pride in wearing the green and gold," says Carly Povey, Chief Commercial Officer at Bonza.

"As an airline that is solely focussed on Australia, it seemed fitting to name our next aircraft Matilda.

“From all of us here at Bonza, congratulations and well done to the Matildas for what you've achieved on and off the pitch.”

All a bit cheeky when you consider that Qantas is an "official partner " of the Matildas and actually spends money to support the team.

Bonza scraps several domestic routes

New Australian domestic airline Bonza has just slashed five routes from its schedule, citing a lack of what it calls "sustainable demand".

Just a few months after launching operations, Bonza has confirmed its Sunshine Coast-Coffs Harbour, Sunshine Coast-Port Macquarie, Sunshine Coast-Tamworth, Cairns-Mackay and Toowoomba-Whitsunday Coast services will be removed from its route map from August 1.

“In order for us to earn your trust, as we know that we’re at the start of that journey, we have decided to take a step back to allow our services to become more reliable," Chief Commercial Officer Carly Povey said in a press release.

Customers booked on routes impacted will be contacted by the airline via SMS and will automatically receive a full refund or alternate flights with Bonza.

Despite the shock news, Povey said taking this latest step back in the short term will allow the airline to "take a leap forward".

"We’ve been compelled to take out five routes where there isn’t sustainable demand at present," she said.

"Twenty-two routes remain and we’re reducing some routes by one flight per week. Three of the many strong performing routes, namely Sunshine Coast to Albury and Melbourne (Avalon) plus Melbourne (Tullamarine) to Port Macquarie, will welcome a new service each week.

"By removing some flying from our schedule, and going where there is demand, we are achieving two things. Firstly, the changes will allow us to build in additional spare capacity within our current fleet of four aircraft, so we have a buffer when things don’t go to plan [and they will by virtue of being an airline].

"Secondly, by focusing on routes that are performing very well, we’re also taking decisive action by going where the demand is and in turn, setting Bonza up for the long haul - because competition in the airline industry is a good thing and the demand for Bonza is clear.

"We are learning quickly and looking to the future. Our sole mission is maintaining a safe, sensible and sustainable airline that Aussies can enjoy and trust for years to come."

Bonza aims to fly high straight away

 

Fledgling Australian airline Bonza has announced it will operate up to eight aircraft in its first 12 months of operation, subject to regulatory approval.

Speaking at the CAPA Australia Pacific 2021 Aviation Summit in Sydney CEO Tim Jordan said the proposed low-cost carrier planned to better connect Australia, including the regions.

The aircraft will be the 737 MAX 8 and will be leased from 777 Partners - Bonza’s investors who operate their own leasing company.

With Bonza currently in discussions with many airports around Australia, an announcement of initial routes and aircraft bases is expected over the coming weeks.

“We are thrilled to share our commitment to operating up to eight aircraft within the first 12 months of operation," Jordan said.

"This is another way in which we are focussed on creating new market-growth opportunities for regional Australian destinations, better connecting all of Australia, and in turn, stimulating direct and indirect job opportunities for the aviation and tourism industry.”

The aircraft will each have 186 economy seats and are fuel efficient, which will help keep fares low, while also critically delivering less emissions than older aircraft. 

“Today is an exciting day for Bonza," Jordan said. "We are very happy and humbled to be attending the summit to discuss the next phase of the aviation and tourism sector’s rebound.”

Bonza will start operations takes in the second quarter of 2022.

When you give your new airline an absurd name

If I were starting an airline (heaven forbid) then I would choose a name that inspires confidence.

I would not choose a name like Bonza, or Ripper.

Yet a new low-cost airline start-up in Australia has opted go with Bonza (Aussie slang for great, or excellent) as its branding.

Overseas visitors - for a start - will have no idea what the name means. Africans may confuse it with the town of Bonza in the Solenzo Department of Banwa Province in western Burkina Faso. Or maybe not. 

Bonza plans to take off early next year pending approvals, offering low-cost airfares. The backers says Australia is one of the few major aviation markets without an independent low-cost airline. Which might have something to do with the huge distances between major markets.

Bonza is backed by US private investment firm 777 Partners, which has also invested in Canada's Flair Airlines.

"Bonza will deliver enormous benefits to all Australians, but particularly to regional communities by providing new routes and greater travel opportunities," says founder and CEO Tim Jordan.

"Bonza will also play a leading role in Australia's post-pandemic economic recovery."

Jordan has local market experience working at Virgin Blue, as well as the Philippines' Cebu Pacific, Travel Mole reported.

He was also managing director of Kazakhstan-based budget airline FlyArystan, which is owned by Air Astana.

"We want to increase consumer choice and make travel more affordable and more accessible for all Australians," Josh Wander, Managing Partner at 777 Partners.

"We see huge potential in the Australian market to deliver the benefits and options that an independent low fare airline brings."

The airline will launch service with new Boeing 737-8 aircraft.