BONZA CEO, Tim Jordan Guest Lecture
March 2023
Tim Jordan explained the need for the Australian Domestic Market to have a truly independent LCC with the number of routes served by LCCs in the Australian market not seeing any growth in the last ten years, which is in contradiction to the worldwide trend of LCCs growing new routes at a strong rate. It was reiterated that approximately 50% of the Australian population live outside the biggest three cities. Bonza targets price stimulated leisure demand on markets that are currently not served or underserved.
Main takeaways from the presentation were:
Australia has stood still in recent years in relation to the LCC evolution.
It was highlighted that the number of Routes served by LCC’s in the Australian market had not grown in 10 years, which was a contradiction to the worldwide trend of LCC’s growing new routes at a strong rate.
The birth of the Bonza brand in 2016, the relationship with 777 Partners and the ability to tap into brand new, fuel-efficient B738-Max aircraft with 186 seats.
The Bonza network, which went on sale in late January ’23 and the aircraft bases at Sunshine Coast and Melbourne Tullamarine airports.
Bonza is targeting price stimulated leisure demand on markets that are currently not served or underserved. Of the 27 routes that Bonza has started, some 25 are unserved.
Bonza’s customer profile is aligned to “Teachers, Tradies, Kids and Carers”, an Airline for All Australia - “Allstralia”. Get people out of cars and using affordable air travel!
It was re-iterated that ~50% of the Australia population live outside the biggest three cities.
Bonza will use digital age to distribute and communicate direct to customers – “App First Strategy!”.
Bonza will utilize a Digital Service Centre – “we call you back” and this service has been very well received!
Work from Home has worked well for Bonza and has ensured that they have recruited excellent people by providing flexibility!
Both Tim & Lidia acknowledged that the Class has asked some excellent questions during the Q&A session.
Of the 27 routes that it had at the time of this talk, 25 were underserved. Since this presentation, Bonza has axed 5 of its 27 routes in an efficiency move to reduce cancellations across the network.