Budget airline Bonza collapsed one year ago. Will another cut-price carrier take its place?By Jessica Ross and Josh DyeABC Sunshine CoastTopic:Air Transport Industry1h ago1 hours agoTue 29 Apr 2025 at 8:26pmBonza staff mark the airline's first anniversary in January 2024. (Supplied: Bonza)abc.net.au/news/budget-airline-bonza-collapse-one-year-on/105210284Link copiedShareShare articleIn Bonza's first year of operation more than 650,000 passengers eagerly boarded jets bound for cities and the many regional towns the big airlines had ignored.Based on Queensland's Sunshine Coast, the carrier was marketed as a cheap and cheerful alternative to the major players and took to the skies in early 2023.Bonza's first flight out of the Sunshine Coast was to the Whitsundays. (ABC Sunshine Coast: Josh Dye)But a mere 15 months later the mood was grim.Rumours had swirled in the weeks prior to the company's collapse that the financial rug had been pulled from beneath Bonza's Australian directors by its US backers, 777 Partners.Many were surprised when the company nosedived into voluntary administration on April 30, 2024 — but it did not come as a shock to those on the inside.Bonza cancellations left thousands of people stranded. (ABC Sunshine Coast: Robert Burgin)"We started to hear the whispers and probably could see the writing on the wall, but we kept working hard all the way until the final curtain," pilot Paul McKeown said."We knew the history of start-up airlines in Australia, so I don't think any of us were under illusions about the risk … the thing that probably frustrated us more than anything was that it was really good."Flights were full, despite what the naysayers were saying — the people loved us."Mr McKeown said Bonza was achieving success, but tried to expand too quickly. (Supplied)Mr McKeown said many former Bonza workers were forced to leave the Sunshine Coast to pursue other opportunities after flights were cancelled indefinitely.Some staff never received wages or entitlements for April 2024."We did get the fair entitlement guarantee, in the end, from the government," Mr McKeown said."I'm grateful for that, but that still leaves me about $60,000 outstanding."Financially, it's definitely been crippling."Bonza planes were grounded at Sunshine Coast Airport after its collapse. (ABC Sunshine Coast: Jessica Ross)Left in the lurchTens of thousands of passengers were stranded across the country on the morning of the Bonza collapse, when all flights were abruptly cancelled.A tearful Tracey Hilbert appeared live on breakfast television and explained how she had booked a flight from Melbourne to Gladstone to be by her dying father Lesley's bedside.Qantas, Jetstar and Virgin swooped in to help her and other affected Bonza passengers by offering free replacement flights, but it took Ms Hilbert an extra day to reach her destination.Ms Hilbert with her replacement tickets at Brisbane Airport. (Supplied: Brisbane Airport)"I got up there the day after he passed away," she said."I lost both parents last year."In a stroke of unbelievably bad luck, Ms Hilbert's flight with Virgin was also cancelled about five months later when her mother Merle was dying.By the time she arrived in Gladstone, her mother had died.Ms Hilbert with her parents, Merle and Lesley Snell. (Supplied: Tracey Hilbert)Despite the traumatic experience, Ms Hilbert said she had fond memories of Bonza, which she had used regularly, saving hundreds of dollars each time."They were always on time," she said."They didn't have any hiccups like your other ones and they were very friendly — I loved them."Ms Hilbert was among almost 60,000 customers with forward bookings who were impacted by Bonza's demise.She said she hoped another airline would step up to fill the void."Keep it cheap — you'll find a lot of Australians probably flying more," Ms Hilbert said.Bonza planes were grounded at Sunshine Coast Airport after its collapse. (ABC Sunshine Coast: Jessica Ross)Communication breakdown In Bonza's first year of operation passengers could only book via a mobile app, which alienated those who preferred using a computer.No action against Bonza directorsPhoto shows A middle-aged man in a dark shirt and jeans stands with his hands in his pockets on an airstrip.Corporate regulator ASIC has decided not to take action against the directors of the budget regional airline following its collapse last year.The lack of a call centre led to major frustrations when flights were cancelled or changed.Flights between the Sunshine Coast and Melbourne were regularly selling for as little as $29 one way and senior staff have told the ABC there was a regret that the fares were too cheap.Bonza executives maintained that the airline was trending upwards and was only six months away from being cash-positive.Management had long hoped to secure an Australian owner and the ABC has learnt a local investor was in advanced negotiations weeks before the collapse.ASIC's investigation into Bonza has ended without any action taken against its Australian and US directors, but the corporate regulator can recommence its investigation if circumstances change or it receives new evidence.Passengers arriving at Whitsunday Coast Airport in Proserpine on Bonza's first public flight on January 31, 2023. (ABC Tropical North: Mel Maddison)From boom to bust Bonza's initial schedule included flights from its Sunshine Coast base to 11 destinations including Cairns, Rockhampton, Townsville, Coffs Harbour and Mildura.The operation would grow to include Melbourne and Gold Coast bases and the first direct service from the Sunshine Coast to Darwin would be offered.Future of no-frills flying Photo shows People board plane on tarmacA number of strategic issues are blamed for Bonza entering voluntary administration, but some analysts argue it never stood a chance in the first place. Is there still a future where new budget airlines in Australia could thrive? The first Bonza passenger flight was to Queensland's Whitsundays region."In the time that Bonza flew to the Whitsunday Coast Airport they carried 80,000 passengers," the airport's chief executive Craig Turner said."I'd be lying if I said we weren't extremely disappointed … we'd spent a lot of time and energy working with Bonza long before they flew."Mr Turner said he had been working to increase flights over the last year."We could actually go and speak to the incumbent airlines and say, 'Well these are the numbers,'" he said."One glimmer of good news is the fact we actually had real data from those destinations."Sunshine Coast Airport has also been rebounding after the loss of Bonza."At its peak Bonza was accounting for about 20 per cent of passenger numbers," airport chief executive Chris Mills said."But it's been a year now and one of the pleasing things we've seen is continued growth with our other carriers."A quiet Sunshine Coast Airport in the days after the Bonza collapse. (ABC Sunshine Coast: Jessica Ross)'Bottomless pit of money'Aviation expert Geoffrey Thomas said the Bonza business model was a replica of Allegiant Air in the US, which was a "very successful and profitable" airline."The simple model is we connect major centres that are currently not connected," he said."The [Bonza] model was fine, the staff were fantastic."The whole operation was very slick — it was the funding."Mr Thomas expects another budget carrier to emerge eventually. (Supplied)Mr Thomas quoted politician Gareth Evans, who deregulated the Australian airline industry in the late 1980s."He said, 'There's always a businessman or a businesswoman who loves the smell of aviation fuel in their nostrils,'" Mr Thomas said."It's perceived to be a sexy industry … but the reality is so different to the allure — it's like a bottomless pit of money."There's so much regulation because [Australian aviation is] so safe."There's a lot of boxes you've got to tick."A third airline would mean cheaper flights, can this man do it? Photo shows A man wearing a tie stands indoors, looking ahead. A neutral expression on his face.Australia's airline graveyard is littered with failed carriers – with two more joining the ranks of the fallen this year. Bill Astling believes he has what it takes to break into the market.He said he would not be surprised to see another start-up take up the challenge by the end of the decade if the conditions were right."I think we'll need to move to more stable economic times and more stability in the aviation industry itself before someone else tries this again," Mr Thomas said.Mr McKeown said he had moved on from the "tragic fiasco" but remained friends with former colleagues."We have a great camaraderie … when we have a few beers and lament, the sentiment is, 'What a shame,'" he said."I hope next time a Bonza model pops up there's an Australian backer who takes a punt and backs it."Posted 1h ago1 hours agoTue 29 Apr 2025 at 8:26pmShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesAustralia faces a 'lonelier' world with rules-based order crumblingTopic:National SecurityPhoto shows Two men wearing glasses and suits behind the backdrop of the world map.Data shows shift in views towards Australia's relationship with US and ChinaTopic:Foreign AffairsPhoto shows A graphic shows a defence tank and aircraft over a map of Australia.There's a reason Dutton can't resort to a scare campaign with older AustraliansAAnalysis by Annabel CrabbPhoto shows Peter DuttonHolmes à Court fuels movement that denies he'll have seat at the tableTopic:Political Parties and MovementsPhoto shows shac tealFinal campaign dash as Albanese sweats on Dutton suburban fightbackTopic:ElectionsPhoto shows Anthony Albanese takes a selfie with the public on a street.Related storiesBonza boss speaks for first time since collapse as ASIC probe endsTopic:Air Transport IndustryPhoto shows A man stands on an airport runway with his hands in his pocketsUS authorities investigating whether budget airline Bonza was funded with money meant for football teamsTopic:Air Transport IndustryPhoto shows A plane sits on the runway at an airport. 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