View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
October 13, 2021

New Australian low-cost start-up Bonza Airlines set to disrupt market

Low prices, a favourable network and no-frills service will see Bonza Airlines thrive.

By Globaldata Travel and Tourism

Australia’s newest low-cost start-up Bonza Airlines will provide vital low-cost competition in a full-service dominated market and could be a disruptive force. Covid-19 has presented Bonza Airlines with a prime opportunity to launch, and the current situation will aid its expansion plans.

Bonza Airlines is well-positioned to fill the void left by Tigerair’s exit and will place pressure on incumbent players Qantas Airways and Virgin Australia. There is a gap in the market for a new low-cost carrier, and Bonza Airlines fits right in. Although GlobalData figures show that 25 million domestic trips were taken by air in 2019 (pre-Covid) across Australia, competition between airlines has remained low and underserved communities have suffered. The new entrant’s strategy to connect underserved airports and target leisure travellers could see the airline become a sizable competitor over the coming years.

Financial concerns remain – low-cost flights attractive

GlobalData’s Q3 2021 Consumer Survey* has revealed that 77% of Australian respondents were ‘extremely’, ‘slightly’ or ‘quite’ concerned about their personal financial situation, reinforcing the need for lower-cost air connectivity in Australia.

The launch of a new low-cost carrier will be met positively by those looking for cheaper travel options. Covid-19 has placed a considerable strain on travellers’ budgets and the desire to escape on vacation has risen considerably. Operating a low-cost business model will bear fruit for Bonza Airlines. The low-cost base, coupled with expected pent-up demand for low-cost flights, could see the airline quickly become popular.

Furthermore, 54% of Australian respondents in GlobalData’s Q3 Consumer Survey* said affordability was the top factor taken into consideration when deciding where to go on holiday. Offering low prices will be vital to encouraging travel during the Covid-19 recovery period. Low prices, a favourable network and no-frills service will see Bonza Airlines thrive.

Now is an optimal time to launch

With domestic and interstate travel restrictions beginning to ease and travellers seeking a change of scenery, 2022 is an optimal time for Bonza Airlines to launch.

Covid-19 has provided an optimal environment to launch. An abundance of attractively priced second-hand aircraft, airport slots, and skilled labour (pilots and cabin crew) means previous barriers to entry have been lowered. Bonza Airlines is likely to possess a low-cost base, resulting in lower fares and the ability to win market share from competitors.

Furthermore, a lack of low-cost competition in Australia will see the carrier become popular with budget-conscious travellers. Leisure travel is expected to benefit post-Covid and the airline will be favoured by those seeking leisure destinations. All factors combined should equal a recipe for success for Bonza Airlines.

*GlobalData Q3 2021 Consumer Survey, 569 Australian respondents

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The airport industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Airport Technology