Australian ULCC Bonza to fire up the domestic fare war

A new independent low fare airline, backed by Florida-based private investors 777 Partners, plans to launch in Australia in early 2022. The start-up, to be headed by former Virgin Blue executive Tim Jordan, aspires to be the only ULCC in the Australian domestic market.

Named Bonza (old Australian slang for a good thing), the airline will launch service in early 2022 with Boeing MAX-8 aircraft, typically operating at a seat cost and carbon emission level up to 20-30% below those of existing domestic airlines.

The new team argues that of the 15 largest domestic aviation markets in the world, Australia is the only country without an independent low cost airline.

Bonza's entry will certainly fire up an already budding fare war. Former regional specialist Rex Airlines had already entered with 737s on some major routes earlier in 2021, confronting a reconstituted Virgin Australia, under the ownership of Bain Capital and the Qantas/Jetstar combination all eager to get the cash flowing as Australia's state borders open up.