The Australian low-cost startup Bonza has decided to launch operations using a Boeing 737 MAX fleet. According to the airline’s CEO, Tim Jordan, the company got a phenomenal deal on the MAX units. Let’s investigate further.
The entry of the MAX into the Australian market
Currently, there are no Australian airlines that use the Boeing 737 MAX for regular domestic operations. Bonza aims to change that as soon as it enters the market next year.
Currently, only Fiji Airways use the MAX on routes to Australia, according to Cirium. In October, the carrier had five flights with its B737 MAX 8 fleet between Nadi and Brisbane.
In February 2019, before the MAX grounding, Fiji Airways and SilkAir operated nearly 170 flights with the MAX to Australia.
Australia recertified the MAX by the end of February 2021.
A phenomenal deal for Bonza
As reported by Australian Aviation and the Australian Aviation Podcast, Bonza got a “phenomenal” deal on the 737 MAXs. The airline could start operations with three MAX units next year.
Bonza’s investors 777 Partners have been able to acquire several Boeing 737 MAX aircraft at incredible prices, in a unique opportunity, said Jordan. Due to the Boeing crisis (which lasted between March 2019 and November 2020) and the COVID-19 crisis, the value of the 737 MAX fell.
777 Partners is a private investment firm based in Miami. Additionally to Bonza, it also has a significant share of Canada’s low-cost operator Flair Airlines.
Jordan added,
“At this minute, there are hundreds of MAX aircraft flying around the world. And in fact, before too long, obviously, Fiji and also Singapore will be bringing it here. We just see it as a fantastic aircraft to deliver the low-cost product that we need.”
Bonza will use the MAX to encourage more travel, providing more choices and ultra-low fares, particularly to leisure destinations. The objective is to deliver benefits, mainly to regional communities, by launching new routes and greater travel opportunities, Jordan added.
Over 30 airports interested in Bonza
During its participation on the Australian Aviation Podcast, Jordan spoke about the interest Bonza has gained across Australia.
According to the CEO, more than 30 airports in the country have shown their interest in becoming partners. Currently, there’s only one low-cost carrier in Australia, Jetstar, which Qantas owns. Tigerair ceased operations due to the COVID-19 pandemic.
Bonza sent a request to approximately 45 different airports in Australia. The carrier said if they wanted new routes not currently offered by existing airlines, they could let Bonza know which incentives were on the table to bring more customers.
“We’ve been very positively received by those airport partners. I think the last time I looked, more than 30 airports had responded positively already. And we are still three weeks away from the timeline for them to respond.”
The Australian domestic market is still feeling the impact of the COVID-19 pandemic. In November, the Australian carriers will be offering 29,061 flights, according to Cirium’s database. That number is a 44.6% decrease in frequencies offered compared to November 2019. Many routes have not opened yet. Bonza’s direct competition, Jetstar, will have 2,535 flights in November, a 62.6% decrease compared to its pre-pandemic numbers.
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