‘Bonza’ bargain airline eyes mid-2022 takeoff

There’s a new name in Australian aviation and it’s Bonza; a budget carrier emerges from the pandemic in the hope of tapping into a market hungry for travel.

A new low cost carrier called Bonza is being planned for takeoff in Australia by mid-2022.

A new budget carrier called Bonza is being readied for takeoff as Australia emerges from the Covid crisis, in the hope of tapping into a market hungry for travel.

With a “thumbs up” logo and the backing of US private investment firm 777 Partners, Bonza will sport a fleet of Boeing 737s and focus on regional and leisure destinations.

Bonza CEO Tim Jordan has extensive experience in airlines, including Virgin Blue.

Headed by former Virgin Blue alumni Rick Howell and Tim Jordan, the low-cost carrier was expected to begin selling seats early next year and be in the air by the middle of the year.

Mr Jordan, Bonza’s chief executive, said the airline aimed to introduce more Australians to low-cost air travel with fares expected to be 30 to 40 per cent below that of its competitors.

“Of the 15 largest domestic aviation markets in the world, Australia is the only one with just one low-cost carrier, being Jetstar, so that doesn’t sit right,” he said.

“From a leisure perspective, it probably means we’re not all that we can be in terms of the amount of domestic tourism-related travel across the country.”

Unlike other airlines operating in Australia, Mr Jordan said, Bonza would not be courting the business market or operating in the east coast’s “golden triangle”.

He said its strategy focused on building new routes between those regional centres with airports capable of landing a 737.

“We’re not going to be a ‘me too’ airline. You’re not going to see us hopping between Sydney, Melbourne and Brisbane. That’s already a highly competitive market,” Mr Jordan said.

“I think there are some very significant opportunities to stimulate new markets, and that’s what this is about. The vast majority of our markets will be unserved currently by existing operators.”

Rick Howell, a former general manager, flight operations at Virgin Blue Group.

Frequency of flights would be limited to about “two, three or four services a week”, and airports would play a significant role in determining the routes Bonza flew.

Mr Jordan said he would be seeking the best possible deals from airports in order to keep the cost base low. “We will be communicating with airports and saying ‘Would you like Bonza to come to your airport in 2022?’ – and based on their responses we will then craft our initial network plan,” Mr Jordan said.

“I am concerned about some of the larger airports; hopefully they are a bit more accommodating in terms of their charging mechanisms than maybe has historically been the case,” he added

Talks are already under way with the Civil Aviation Safety Authority to secure an air operator’s certificate for Bonza, which plans to begin flying with just two or three 737s. Virgin Blue used a similar strategy when it launched in 2000, and Mr Jordan said it was fortunate the major investor owned an aircraft leasing company. “That will give us significant flexibility to grow quite quickly, or not as quickly,” he said.

Although Australia’s aviation history is littered with failed carriers, including Compass and Ansett, Mr Jordan was adamant Bonza would not be among them.