Not so Bonza: Could budget airline be next to join Australia’s budget airline graveyard
Many budget airlines have gone bust in Australia and Bonza could be the latest to join the airline graveyard. But why does history keep repeating itself?
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
Is Bonza set to be the latest resident in Australia’s budget airline graveyard?
News broke on Tuesday that the domestic airline would be suspending all flights after an early-morning seizure by an aircraft leasing company.
The scene of Bonza craft ‘Bazza,’ which had crew on board before the direction came through on Tuesday morning to not take off was reminiscent of scenes in 2001 when the axe fell on Ansett Airlines.
The airline faulted on loans on April 17 but Bonza alleges it was not forewarned of the termination.
Bonza flights will remain grounded until May 7 at the earliest, with the majority of staff stood down in the meantime.
Many social media punters compared Bonza being placed into voluntary administration to the fall of other famous, or infamous, budget airlines.
RIP Bonza. I remember being stranded when Compass II went belly up. You’d need nerves of steel to start an airline in Australia pic.twitter.com/KFmqDA4FOR
— Paulo (@PauloHalo) April 29, 2024
Add Bonza to the growing list of failed Australian airlines.
— Scott Phillips (@TMFScottP) April 29, 2024
In recent decades:
Ansett
Compass (twice? three times?)
Ozjet...https://t.co/rMffDP3hCw
News worsened for the airline that had vowed to “fight on,” with administrators revealing on Thursday the company was “not in a position to process or issue refunds at this time.”
Australian Airports Association chief executive James Goodwin said that while the immediate concern was with those directly affected, the grounding of Bonza demonstrated the need for greater airline competition.
“This is a sad time for aviation and a major blow for competition,” Mr Goodwin said.
“On routes where Bonza has been competing with other airlines such as Melbourne-Gold Coast, the data is clear – Bonza has been instrumental in improving competition and pushing down airfares.
“Australia is one of the most concentrated airline markets in the world, with the Qantas Group and Virgin Australia accounting for 95 per cent of the domestic market share.”
Associate Professor of Aviation Dr Selina Fothergill said the Australian market was “tough” to break into.
“All airlines run on a thin margin,” Dr Fothergill said.
“There’s a lot for them to comply with and a lot of upfront costs.
“Then there’s a lot of competition and the market’s pretty saturated, so it is tough to make an entry into.”
Dr Fothergill said she was not overly surprised upon hearing the news Bonza had gone into administration.
“It’s an industry where there’s a high turnover,” she said.
“People obviously are excited about new things, but it does happen, they do fold sometimes.”
An incomplete history of Australia’s budget airline graveyard
TIGERAIR 2007 – 2020
Tigerair is the most recent example of a budget airline to go belly up in Australia.
The airline caused a major stir when it burst onto the scene in 2007, with then Jetstar chief executive Alan Joyce saying it “came across as a joke.”
While the airline was initially Singaporean owned, Virgin would eventually acquire in 2014.
The airline helped lower fare across Australia, but was not without controversy, in July 2011 the Civil Aviation Safety Authority grounded Tigerair while it investigated a pair of operational incidents.
In 2020, after 13 years and 30 million customers, Tigerair went bust, a victim of the Covid pandemic.
ANSETT 1936 – 2001, 2001 – 2002
Unlike other airlines on this list, Ansett had a long and storeyed history in Australia before collapsing, at one point being half of the country’s duopoly.
The company, which was founded all the way back in the 1930s, began feeling the pinch of competition from Qantas as well as other budget airlines.
Air New Zealand acquired the airline, before placing it into voluntary administration on September 12 2001 after revealing it was losing $1.3m a day.
Ansett attempted a comeback in October of 2001, but by February the next year it had collapsed again, with staff filling airport lounged for mass wakes as the final flights landed.
COMPASS 1990 – 1991, 1992 – 1993
The airline so nice, they tried it twice.
An attempt to break the Ansett- Australian Airlines Duopoly, Compass Mark I offered cheaper fares by detouring through regional cities.
Mark I only lasted 12 months before going under, Mark II launched the next year but suffered the same fate.
AIR AUSTRALIA 1991 – 2012
Air Australia launched around the same time as Compass, but managed to hold on for over 20 years.
With a fleet size of only four planes, the airline serviced five destinations domestically and internationally.
In February 2012, it was announced Air Australia would be going into administration, leaving hundreds of passengers stranded.
Later that year, creditors voted to place it into administration.
BACKPACKERSXPRESS 2003-2005
A relatively niche one, BakckpackersXpress sought to become a ‘party airline,’ offering planes fitted with a pub, live entertainment and two enormous VB logos on the planes.
It promised to be a low-cost and fun way of flying from the UK to Australia, but never got off the ground.
OZJET 2005-2012
OzJet burst onto the scene in 2012, offering Boeing 737’s that were business class only.
In March 2006 the airline was forced to cease all operations before returning in 2007.
With the insolvency of its parent company in February 2012, OzJet ceased all operations.
More Coverage
Metro Tunnel is $4bn over budget. Its latest hires are TikTokers
The Allan government will throw cash at hiring social media influencers to spruik the Metro Tunnel — some $4bn over budget — when it opens later this year.
‘I’m done’: Allan shirks SRL questions after feds announce conditional funding
Jacinta Allan has failed to answer a string of questions about when the first homes around the Suburban Rail Loop project will be built as the state opposition calls for the project to be paused.