A new budget carrier is set to shake up Australia’s domestic aviation sector when it launches next year.
Backed by US investment firm 777 Partners, Bonza has been founded by former Virgin Blue executive Tim Jordan who is aiming to tap into regional demand for a low cost service.
Using Boeing 737-8 jets, Jordan said they would do “something different” rather than compete on the traditional Sydney, Melbourne Brisbane routes.
“It is a great time to start an airline; there is pent-up demand, and we can also leverage good opportunities in the aviation market like cheap jets,” Jordan told the Australian Financial Review.
Jordan said his previous experience in Kazakhstan showed him how to access untapped demand in a domestic air sector.
“In Kazakhstan, domestic aviation has grown 37 per cent in the first half of 2021 versus 2019,” he told the AFR.
“It is one of the fastest growing markets in the world because they are stimulating new demand that didn’t exist prior.”
Jordan said the airline will keep costs down by forsaking any extraneous extras such as airport lounges or frequent flyer schemes.
Bonza is currently in discussions with more than 40 airports to gauge preliminary interest before launching early 2022.