‘We will get things wrong’: Bonza CEO backs cost-saving as bogan airline takes off

Newly launched budget airline Bonza is hoping its low-cost strategy creates sufficient demand to attract throngs of regional travellers even as a glitch in the app-only food ordering system on its maiden flight left passengers out of pocket.

Passengers cheered and clapped as Bonza’s first commercial flight took off from Queensland’s Sunshine Coast airport at 8.35am AEST, making the 76-minute minute journey to the Whitsunday Coast Airport and touching down at 9.51 am.

Bonza’s first commercial flight departing Sunshine Coast Airport.
Bonza’s first commercial flight departing Sunshine Coast Airport.

“It really is a game-changing day for Australian aviation, a long time in the making,” Bonza CEO Tim Jordan said . “We’re here at the start line and we will be changing the aviation environment for the better, for the many.”

Bonza markets itself as a “bogan” airline with a fleet of three Boeing 737 Max-8s named “Shazza, Bazza and Sheila.” No other Australian carrier operates the Max-8s, which are 20 per cent more fuel efficient.

It’s the first high-capacity, low-cost carrier to launch in Australia since now-defunct Virgin subsidiary Tigerair took off 15 years ago. Bonza is positioning itself as a leisure carrier targeting tourism destinations in regional Australia, not competing with Qantas or Virgin which service high-frequency routes.

Bonza’s planned routes.
Bonza’s planned routes.

Jordan, who is based in Coffs Harbour, did not rule out a presence in Sydney or other metropolitan cities (Melbourne is already part of Bonza’s initial network), but said the costs of flying through some airports were too high.

“Of course we have interest in places like Sydney – we can’t say we’re here for all of Australia and not service markets like Sydney. However, it has to be on a long-term commercial basis that can support our fare levels,” he said. “[Sydney Airport is] not as keen to come to the table maybe as other locations, or maybe they don’t see the opportunity. Wonderfully, the Melbourne Airport team stepped forward,” he said.

The new carrier’s first flight was not without teething issues.

Advertisement

The high volume of orders and short flight time on Bazza’s first voyage left a handful of passengers, particularly in the middle of the cabin, without food or merchandise they already paid for, including a Boeing executive. Passengers were not told their items would not be arriving.

To save on costs, Bonza has ditched in-flight trolley service, physical menus, and Wi-Fi. Customers must book flights, check in, order and pay for food through the Fly Bonza app, which runs on a restricted Wi-Fi service. A bottle of Nu Pure Spring Water or cup of tea will set you back $3.50.

CEO Tim Jordan said customer disputes would be resolved through the Fly Bonza app’s digital chat function. The fledgling airline does not have a call centre or any phone number customers can ring to resolve issues, another cost-saving initiative.

“We’re not an airline that’s going to say we’re not going to get stuff wrong,” Jordan said. “And we plan to apologise and learn from it and try and improve. And that’s the way that we’re going to be approaching the market and we believe that’s quite refreshing.”

The Sunshine Coast to Whitsunday Coast route is the first to be rolled out in Bonza’s planned flight network spanning 17 destinations and 27 routes including Albury, Bundaberg, Toowoomba as well as Port Macquarie and Coffs Harbour.

Sunshine Coast Airport CEO Andrew Brodie believes the new airline will transform the region’s economy and contribute $86 million in tourism dollars to the wider region. Of Bonza’s 17 routes, 13 have Sunshine Coast Airport as the point of origin or departure.

“This is a game changer. It’s unbelievable,” said Brodie. “It’s a partnership forever.”

The new carrier is eager to capitalise on the trend of people moving away from metropolitan cities and towards regional areas driven by COVID lockdowns and the ubiquity of remote work.

On board the “Bazza” flight were key figures from Bonza backer and US private equity firm 777 Partners, including founder and managing partner Steve Pasko, chief operating officer Prasad Hedge, and head of airline investments head Manish Raniga. Boeing commercial marketing vice president Darren Hulst was also aboard. Bonza also invited food partners, hyper-local small businesses from the Sunshine Coast, on the flight.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.

Most Viewed in Business

Source: Thanks smh.com