By Amelia McGuire
Low-cost airline Bonza’s plans to take to the Australian skies remain uncertain, with the Civil Aviation Safety Authority (CASA) yet to sign off on the carrier’s operations.
Bonza burst into the local aviation scene in October last year, becoming the first airline to launch in Australia in the last 15 years.
Bonza’s first Boeing 737 MAX arrives at Sunshine Coast airport.
It’s planning to offer low-cost flights to regional holiday destinations across the east coast, but its fate lies with CASA, and it’s still unclear how much longer Bonza will have to wait for regulatory approval.
ASX-listed Regional Express, which already held the coveted Air Operators Certificate for regional flights, waited four months to get the tick from CASA to expand into city services last year. So far, Bonza has waited since April.
Bonza recently hired Virgin Australia’s former general manager of operations planning Michael Young to lead its negotiations with the safety authority, following the exit of former chief operations officer and co-founder Peter McNally.
The budget airline’s chief commercial officer Carly Povey said it hasn’t been deterred by the drawn out regulatory process.
“When the regulator is happy, we’re happy. It’s the single most important piece to running an airline,” the former Jetstar executive said, adding her team has been focussing on what they can control including finalising airport partnerships, training and recruitment. Bonza’s first fleet of cabin crew completed training on the Sunshine Coast last week.
Despite the war in Ukraine pushing up the cost of jet fuel, rampant inflation, an aviation skills shortage and the continuing operational challenges of COVID-19, Povey said Bonza’s pricing structure should make it a hit with the travelling public.
“Confidence in domestic travel is back, there’s record high demand, and we think people will be stimulated by our low prices,” she said.
In a step away from manicured tradition, Bonza cabin crew are encouraged to wear their sneaker-based uniform however they want. Credit: Bonza
Bonza’s flight network will cover 17 destinations including Albury, Bundaberg, Toowoomba and the Whitsunday Coast. In all but one of these destinations, the fledgling airline will be the only low-cost carrier and will fly two to three times per week. When Bonza first send out expressions of interest to its chosen airports, more than one replied if the request was sent in error.
“We’re really trying to do something different, it’s not a gimmick, we’re expanding regional travel,” Povey said.
Because of its novel structure, Povey said Bonza’s primary competitors are not other airlines, but cars.
Bonza’s first Boeing 737 MAX .
“We’re targeting those who usually drive 4-6 hours, or choose to stay home on the couch because they don’t have the luxury of flying. We want them to see a ticket fare below $100 and realise it’s cheaper and more convenient to fly with us,” she said.
Bonza’s first Boeing 737 Max 8- named “Shazza”- arrived in Queensland in July. The model was once stopped by manufacturers after it was marred by a litany of hardware and software issued that resulted in two crashes and more than 300 deaths. Since then, 135 countries have approved them for use and while Bonza will be the first domestic carrier to fly the aircraft, they’re already flying to and from Australia with other international carriers.
The group is relying on the aircraft’s superior fuel efficiency to protect it from the brunt of the jet-fuel crunch. Povey is also quick to dismiss concerns Bonza cannot be profitable with such low prices in this economy, pointing to her experience launching British budget carrier Jet2 in 2002.
“It’s a new model for Australia, but it works elsewhere. Our fuel-efficient aircraft has high capacity and will only fly two to three times a week. If we were flying 4-6 times a day on major routes with high competition and low capacity, we’d be more worried about profitability,” she said.
Povey said observing the turmoil that marred aviation over the past two years has taught the carrier the importance of adaptability.
“We’re fortunate we didn’t have to grapple with the COVID volatility, but it forced the realisation there’s a need to do things differently,” Povey said, adding the country has changed a lot since before the pandemic, a lesson Bonza’s hoping to capitalise on with an app-based customer service offering.
“The pandemic proved large-scale change to behaviour is possible. I think we’re still riding that wave of societal and travel changes. We’re not going to get everything right, but it’s partly why we’re trying to push the boundaries to meet our passengers as they change,” Povey continued.
Bonza has invested in an internal cabin and flight crew but plans to outsource aspects of its service with groups used by its airline partners such as ground handlers.
“It’s not about finding someone to outsource a job to but finding someone with a specialisation we don’t already have,” Povey said, adding the airline has already hired many aviation employees who were stood down or furloughed during COVID-19.
“We hope to be a pandemic circuit breaker. We didn’t have to live that pain, but we did learn through observation that service delivery is key, now we’re ready to deliver.”
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
correction
An earlier version of this story stated that Bonza had been waiting for eleven months for approval from CASA to expand into city services. They have been waiting since April 17.