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Commercial airlines need to obtain its high-capacity Air Operators Certificate from the Civil Aviation Safety Authority – a process that often takes in excess of 12 month, which requires the operator to have personnel, assets and system in place to ensure the safety of its employees and the general public.

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Bonza targets budget-conscious passengers travelling to previously neglected tourist destinations

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unable to reach consumers with higher disposable income since Bonza is a budget airline

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Domestic tourist visitor nights, which measures overnight stays at locations more than 40 kilometres from home, has been growing steadily in terms of both tourists and corporate travellers. Thus, airlines will likely increase capacity in line with rising demand over the next five years

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After a disastrous 2020, in which passenger traffic globally fell by two-thirds, the International Air Transport Association’s latest forecast (published in February) doesn’t expect this year’s total traffic to be more than halfway back to pre-pandemic levels. Full recovery isn’t expected before 2023.

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Trends in real household discretionary income influence demand for domestic air

transport. When income growth is strong, households tend to increase spending on

discretionary items, such as holidays. This trend usually increases demand for industry services.

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The strong and stable political has attracted the attention of investors because stability makes them feel to trust the system. Which make the airline industry to be packed with strong competitors.

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The global pandemic have prompt many into putting aside and saving more of their income therefore reducing leisure air travel. Budget airline like Bonza with cheap air ticket could increase the demand for leisure travel again

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The world price of crude oil is expected to rise in 2020-2021. As fuel is a major cost for domestic airlines, increases in price of crude oil is expected to negatively affect not just Bonza but the industry itself.

Most airlines are unable to fully pass this cost on to consumers due to price competition. This is a threat to Bonza as they are aiming to be cost-conscious.

This will most likely impact Bonza hard because of their low fares. I believe Qantas might not be affected too much as they are operating on a bigger scale than Bonza.

Youl, Tom. Domestic Airlines in Australia
Download Domestic Airlines in Australia. UA Industry (ANZIC) Report, I4902, IBIS World, 2020, p. 52.

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discounted prices on their services would potentially allow for more customers to use their services as compared to larger companies as businesses increasingly clamp down on travel costs for their employees as such the  lower prices would be more appealing for business travellers

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The highest per capita in Australia which means they are employed and earning well. The overall productivity of the country would rise but due to covid, all industry has been shut down and facing a crisis. WHich can slower down the profit level in Bonza.

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Australia has the world’s most multicultural and multi-ethnic society. Meaning that there are a mass of different people from all different area, where traveling is a vital factor for them

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Australians economy is spending approximately 65 billion US dollars in the technology. They are willing to invest more in better technology. Air-line market has been more competitive to provide better ride with higher services.