Australian Startup Bonza Drops Five Routes, Citing Weak Demand

Australian startup Bonza will slash five routes from its network from Aug. 1 because of weak demand.

The carrier gained its air operator certificate in January and has built up a network of 27 domestic routes flown with Boeing 737 MAX aircraft. But Chief Commercial Officer Carly Povey says in a statement that the carrier is “compelled to take out five routes where there isn’t sustainable demand at present.”

Bonza is dropping three routes from its Sunshine Coast Airport (MCY) home base in Queensland. MCY routes being cut from Aug. 1 include flights to Coffs Harbour, Port Macquarie and Tamworth. Also being cut are services between Cairns and Mackay and between Toowoomba Wellcamp and Whitsunday Coast.

The airline will continue to operate 22 routes, most of which are exclusive to the carrier. 

The cuts have been made “based on what we have learned so far and the feedback [passengers have] given us with regards to route demand,” Povey says. “You could say we’re taking a step back to allow us to take a leap forward. Airlines the world over often tweak their schedules and, for Bonza, this will be the first time we make changes.”

She adds the route cuts “will allow us to build in additional spare capacity within our current fleet of four aircraft [all 737 MAXs], so we have a buffer when things don’t go to plan.”

Povey says the route drops represent “decisive action” needed to ensure Bonza’s success over the “long haul.” She emphasizes that “demand for Bonza is clear.”

Bonza is trying to break into a domestic market controlled by Qantas Group, which had a 60.8% domestic passenger market share in April 2023, followed by Virgin Australia at 33.2% and regional Rex at 4.8%.

The Australian Competition and Consumer Commission has warned Bonza’s growth “will likely be hindered without better access to peak period slots at Sydney Airport,” noting Bonza CEO Tim Jordan has “said that access to slots at Sydney Airport had been an impediment for the new airline, with Bonza not including Sydney in its initial network of 27 routes.”