1 00:00:00,040 --> 00:00:03,880 Speaker 1: Well, as we heard yesterday, Bonza Airlines have announced that 2 00:00:03,880 --> 00:00:06,960 Speaker 1: they're going to operate twelve new flight services a week 3 00:00:07,200 --> 00:00:12,080 Speaker 1: in the Northern Territory, improving connectivity for territorians and hopefully 4 00:00:12,119 --> 00:00:16,040 Speaker 1: boosting tourism. It's going to operate three direct routes from 5 00:00:16,160 --> 00:00:19,280 Speaker 1: Darwin to the Sunshine Coast, Darwin to the Gold Coast 6 00:00:19,400 --> 00:00:23,040 Speaker 1: and Alice Springs to Melbourne. Joining me on the line 7 00:00:23,120 --> 00:00:26,400 Speaker 1: to tell us more about the announcement is Bonza Airlines 8 00:00:26,600 --> 00:00:33,159 Speaker 1: CEO Tim Jordan. Hi, Tim, Good morning, Tim. Talk us 9 00:00:33,200 --> 00:00:36,839 Speaker 1: through these news services. Why did you choose these routes. 10 00:00:39,560 --> 00:00:44,080 Speaker 2: We're all about unserved and underserved markets, so markets not 11 00:00:44,159 --> 00:00:49,720 Speaker 2: operated by other airlines, all markets where there is limited 12 00:00:50,520 --> 00:00:55,120 Speaker 2: or no competition. So that was really the big driver 13 00:00:56,160 --> 00:00:59,360 Speaker 2: for these three particular routes, and obviously with the Northern 14 00:00:59,440 --> 00:01:04,479 Speaker 2: Territory the new route incentive scheme that certainly aligns very 15 00:01:04,520 --> 00:01:08,600 Speaker 2: much with our unserved and underserved philosophy. 16 00:01:09,160 --> 00:01:12,200 Speaker 1: Now, talk us through the new all the prices. I 17 00:01:12,280 --> 00:01:14,319 Speaker 1: know that by the look of things, those price is 18 00:01:14,520 --> 00:01:18,399 Speaker 1: very fair to get into state. Can we expect those 19 00:01:18,440 --> 00:01:20,919 Speaker 1: prices to remain that way? 20 00:01:21,560 --> 00:01:28,040 Speaker 2: Yeah? Absolutely, We're We're very focused, We're all about everybody, 21 00:01:28,319 --> 00:01:31,920 Speaker 2: the many you know, there's maybe other airlines out there 22 00:01:31,959 --> 00:01:33,600 Speaker 2: that you know, if you need to be in a 23 00:01:33,640 --> 00:01:37,000 Speaker 2: particular place on a particular day a particular time, they 24 00:01:37,040 --> 00:01:39,560 Speaker 2: will try and get you there, but that comes with 25 00:01:39,600 --> 00:01:46,000 Speaker 2: a price. We are about low frequency generally, so generally 26 00:01:46,000 --> 00:01:49,520 Speaker 2: offering services two, three or four times a week across 27 00:01:49,560 --> 00:01:53,200 Speaker 2: our network at the moment. But if you're flexible in 28 00:01:53,280 --> 00:01:55,720 Speaker 2: terms of the days of the week that you can fly, 29 00:01:57,360 --> 00:02:00,160 Speaker 2: you will get an absolutely wonderful price from us. And 30 00:02:00,200 --> 00:02:03,040 Speaker 2: the intention is to keep those wonderful prices there. And 31 00:02:03,720 --> 00:02:06,480 Speaker 2: I guess the key point yesterday, whether it's one hundred 32 00:02:06,520 --> 00:02:08,600 Speaker 2: and thirty nine out of ours or one forty nine 33 00:02:08,600 --> 00:02:13,080 Speaker 2: out of Darwin, those are not promotional fares. Those are 34 00:02:13,240 --> 00:02:17,799 Speaker 2: our regular fares. Now, not every seat on board is 35 00:02:17,840 --> 00:02:19,960 Speaker 2: at that level, but there will be a very good 36 00:02:20,080 --> 00:02:21,680 Speaker 2: number at that level. 37 00:02:21,960 --> 00:02:24,120 Speaker 1: Yeah, that was going to be my question. Are these 38 00:02:24,160 --> 00:02:27,359 Speaker 1: sort of are the prices capped at all? Like a 39 00:02:27,400 --> 00:02:28,600 Speaker 1: maximum price? 40 00:02:30,000 --> 00:02:33,760 Speaker 2: Yeah? And I don't even know what that maximum is, 41 00:02:33,760 --> 00:02:36,400 Speaker 2: but what I can say is based on our experience, 42 00:02:38,680 --> 00:02:43,440 Speaker 2: we know we will be comfortably less than half of 43 00:02:43,480 --> 00:02:47,399 Speaker 2: the maximums on other airlines. You know, as a as 44 00:02:47,400 --> 00:02:53,200 Speaker 2: a I guess, yeah, so we we do increase the 45 00:02:53,320 --> 00:02:57,520 Speaker 2: fares as fares sellout and as the flight becomes busier. 46 00:02:57,600 --> 00:03:01,200 Speaker 2: That's just normal. But you know, our most expensive fairs 47 00:03:01,240 --> 00:03:05,600 Speaker 2: are really not that high, especially when compared to unfortunately 48 00:03:05,639 --> 00:03:09,200 Speaker 2: what all of us have experienced for quite some times. 49 00:03:09,600 --> 00:03:11,080 Speaker 1: Well, this is the thing. I think that a lot 50 00:03:11,160 --> 00:03:14,760 Speaker 1: of people are really happy to see some competition into 51 00:03:14,800 --> 00:03:17,119 Speaker 1: the market. And Tim, I guess what I've been quite 52 00:03:17,160 --> 00:03:20,200 Speaker 1: surprised by as a person who's grown up in regional 53 00:03:20,200 --> 00:03:24,000 Speaker 1: Australia seeing you. You know, you're starting routes in places 54 00:03:24,040 --> 00:03:27,560 Speaker 1: like Mount Isa heading to the Gold Coast and now 55 00:03:27,639 --> 00:03:30,480 Speaker 1: you know Alice Springs to Melbourne. The flights that we're 56 00:03:30,520 --> 00:03:33,840 Speaker 1: seeing from Darwin to the Sunshine Coast and the Gold Coast. 57 00:03:34,520 --> 00:03:37,480 Speaker 1: How is it that Bonza is able to do this 58 00:03:37,560 --> 00:03:40,800 Speaker 1: and able to do it at a more reasonable price 59 00:03:40,840 --> 00:03:44,040 Speaker 1: when for so many years we've been told that it's 60 00:03:44,120 --> 00:03:45,160 Speaker 1: that it's not possible. 61 00:03:46,920 --> 00:03:50,240 Speaker 2: It really comes down to different business models. If you 62 00:03:50,280 --> 00:03:56,320 Speaker 2: look at essentially the the you know, the two airline 63 00:03:56,360 --> 00:04:02,200 Speaker 2: companies which are effectively delivered duopoly for aviation in Australia, 64 00:04:02,880 --> 00:04:06,120 Speaker 2: they deliver about nine four nine percent of the seat 65 00:04:06,160 --> 00:04:12,000 Speaker 2: capacity across the country. They are very much Hubbard and 66 00:04:12,040 --> 00:04:14,560 Speaker 2: Spoke what's called hubb and Spoke carriers, so they will 67 00:04:14,600 --> 00:04:19,360 Speaker 2: take people quite quite often into their hubs and then 68 00:04:19,360 --> 00:04:22,560 Speaker 2: connect them on to other places. Now, that drives a 69 00:04:22,680 --> 00:04:27,800 Speaker 2: smaller aircraft type generally, and when you're whenever you're operating 70 00:04:27,800 --> 00:04:30,760 Speaker 2: a smaller aircraft type, that drives up the seat costs. 71 00:04:30,920 --> 00:04:33,240 Speaker 2: Should it drive the sea cost to where they've been? No, 72 00:04:35,200 --> 00:04:38,480 Speaker 2: And what we're actually doing is we fly much lower frequency, 73 00:04:38,640 --> 00:04:40,640 Speaker 2: as I say, two, three or four times a week, 74 00:04:41,240 --> 00:04:45,600 Speaker 2: and we as a consequence fly can fly much larger aircraft, 75 00:04:45,920 --> 00:04:48,839 Speaker 2: so that drives down the sea costs. In addition, we're 76 00:04:48,839 --> 00:04:54,640 Speaker 2: flying new aircraft which our aircraft burn eighteen percent less 77 00:04:54,680 --> 00:04:58,440 Speaker 2: fuel than the other seven three sevens flying around in Australia. Now, 78 00:04:58,480 --> 00:05:02,279 Speaker 2: when fuel is like it is pretty significant, and you know, 79 00:05:02,400 --> 00:05:05,480 Speaker 2: flying new aircraft rather than older aircraft, all of that 80 00:05:05,560 --> 00:05:10,520 Speaker 2: manifests itself in savings. We as a team, our overhead 81 00:05:10,720 --> 00:05:14,040 Speaker 2: is very very small. We operate out of a out 82 00:05:14,080 --> 00:05:16,760 Speaker 2: of a Queenslander here on Sunny Coast Airport, but you 83 00:05:16,760 --> 00:05:21,159 Speaker 2: know that's our granduose head office, so that's you know, 84 00:05:21,279 --> 00:05:22,600 Speaker 2: that's that's the bonds of difference. 85 00:05:22,880 --> 00:05:25,640 Speaker 1: Now, tell me what sealed the deal for BONSA to 86 00:05:25,760 --> 00:05:28,600 Speaker 1: launch in the Northern Territory. 87 00:05:29,560 --> 00:05:33,359 Speaker 2: The new route incentive scheme from the Northern Territory Government 88 00:05:34,560 --> 00:05:39,120 Speaker 2: with working with the Airport Development Group. Without that, we 89 00:05:39,200 --> 00:05:42,080 Speaker 2: wouldn't have been able to make yesterday's announcement. It's as 90 00:05:42,080 --> 00:05:46,360 Speaker 2: simple as that. That really did make a massive difference 91 00:05:46,400 --> 00:05:50,280 Speaker 2: to us and the economics of yesterday's announcement. 92 00:05:50,560 --> 00:05:53,960 Speaker 1: So, tim, what happens when that additional support or funding 93 00:05:54,120 --> 00:05:57,280 Speaker 1: drives up, is BONSA still here for the long haul. 94 00:05:59,320 --> 00:06:02,880 Speaker 2: Our intention is absolutely to be there for the long haul. 95 00:06:03,000 --> 00:06:05,960 Speaker 2: You know, we will have seen enough by that stage 96 00:06:07,120 --> 00:06:11,520 Speaker 2: in terms of the support to see what fares we're 97 00:06:11,560 --> 00:06:16,400 Speaker 2: actually able to consistently attain out of the market, what 98 00:06:16,480 --> 00:06:19,640 Speaker 2: load tractors were able to get, and so that will, 99 00:06:19,720 --> 00:06:24,360 Speaker 2: if you like, enable us to make decisions even longer term. 100 00:06:24,400 --> 00:06:27,520 Speaker 2: But our intention is, you know, this, this is a good, 101 00:06:27,760 --> 00:06:31,280 Speaker 2: really good, big first step, and in fact, you know, 102 00:06:31,400 --> 00:06:33,719 Speaker 2: we would consider it as a first step, and I'm 103 00:06:33,760 --> 00:06:36,920 Speaker 2: hoping that we can actually add more into and out 104 00:06:36,960 --> 00:06:38,520 Speaker 2: of the Northern Territory in due course. 105 00:06:38,760 --> 00:06:41,440 Speaker 1: Yeah, I reckon, that's what Territorians will be hoping as well. 106 00:06:41,520 --> 00:06:44,280 Speaker 1: I guess what we've seen though over the years at 107 00:06:44,279 --> 00:06:46,320 Speaker 1: different times, and I'm sure that you know that you 108 00:06:46,360 --> 00:06:48,680 Speaker 1: guys would have noted this is we have seen over 109 00:06:48,680 --> 00:06:51,640 Speaker 1: the years in and out of the territory new airlines 110 00:06:51,720 --> 00:06:54,640 Speaker 1: come in begin operating a lot of fanfare like we 111 00:06:54,680 --> 00:06:58,479 Speaker 1: saw yesterday, and then unfortunately it not lasts for the 112 00:06:58,480 --> 00:07:00,760 Speaker 1: period of time that a lot of territory orians want 113 00:07:00,800 --> 00:07:03,880 Speaker 1: to say. So that'll be the concern from some people 114 00:07:03,920 --> 00:07:04,480 Speaker 1: this morning. 115 00:07:05,880 --> 00:07:09,560 Speaker 2: Yeah, and I think because you're absolutely right, I've heard 116 00:07:10,000 --> 00:07:13,400 Speaker 2: I've heard that in a number of other conversations, and 117 00:07:14,680 --> 00:07:17,480 Speaker 2: I guess I always ask people to step back and 118 00:07:17,520 --> 00:07:20,680 Speaker 2: look at the demographics. When you actually think about how 119 00:07:20,720 --> 00:07:25,040 Speaker 2: Australia has changed since Compass, which is often a reference 120 00:07:26,120 --> 00:07:31,600 Speaker 2: for why two airlines is enough in Australia, the population 121 00:07:31,640 --> 00:07:36,120 Speaker 2: of Australia has increased by fifty percent five zero in 122 00:07:36,160 --> 00:07:39,960 Speaker 2: the last thirty years since Compass was around. Even when 123 00:07:40,000 --> 00:07:42,800 Speaker 2: you look at when Virgin Blue started twenty twenty one 124 00:07:42,840 --> 00:07:47,440 Speaker 2: years ago, the population of Australia has increased by more 125 00:07:47,480 --> 00:07:51,360 Speaker 2: than a third. And when you actually overlay the demographics 126 00:07:51,520 --> 00:07:54,520 Speaker 2: of regional centers. If I was to ask you, you know, 127 00:07:54,600 --> 00:07:57,760 Speaker 2: how has the Northern Territory changed in the last twenty 128 00:07:57,840 --> 00:08:02,400 Speaker 2: or thirty years. It's probably unreck ignizable. I certainly didn't 129 00:08:02,440 --> 00:08:06,440 Speaker 2: recognize it when I came up last year. The waterfront 130 00:08:06,520 --> 00:08:09,640 Speaker 2: and everything else had changed so significantly, and the city 131 00:08:09,680 --> 00:08:12,960 Speaker 2: itself had changed so significantly when I've been there since 132 00:08:13,080 --> 00:08:15,840 Speaker 2: I was there ten years prior. And so when you 133 00:08:15,880 --> 00:08:20,680 Speaker 2: actually think about how Australia has developed, how you know, 134 00:08:20,760 --> 00:08:23,240 Speaker 2: we a lot more people half of us now as 135 00:08:23,280 --> 00:08:26,600 Speaker 2: a population do not live in Sydney, Melbourne and Brisbane. 136 00:08:27,200 --> 00:08:30,440 Speaker 2: And we're just trying to reflect if you like, Australia today. 137 00:08:30,920 --> 00:08:35,080 Speaker 2: And so we believe absolutely there is viability and as 138 00:08:35,120 --> 00:08:39,719 Speaker 2: I say, there's flexibility in our business model because we 139 00:08:39,840 --> 00:08:43,000 Speaker 2: flex up and down with the demand. So we believe 140 00:08:43,000 --> 00:08:45,720 Speaker 2: what we're starting with is sufficient, but we have the 141 00:08:45,800 --> 00:08:50,520 Speaker 2: ability to flex up and add frequencies as demand shows us. 142 00:08:51,160 --> 00:08:53,559 Speaker 2: As I say, very importantly, we think yesterday was a 143 00:08:53,600 --> 00:08:54,120 Speaker 2: first step. 144 00:08:54,400 --> 00:08:56,760 Speaker 1: And well, like you said, you think it's a first step. 145 00:08:56,840 --> 00:08:59,679 Speaker 1: Where else could we potentially be flying to out of 146 00:08:59,679 --> 00:09:02,800 Speaker 1: the North than Territory in the coming months or whatever 147 00:09:02,880 --> 00:09:03,720 Speaker 1: period of time. 148 00:09:05,320 --> 00:09:08,840 Speaker 2: I will leave that for territoriums to tell us. To 149 00:09:08,880 --> 00:09:11,760 Speaker 2: be quite honest, you know, what's it not for us 150 00:09:11,800 --> 00:09:14,680 Speaker 2: to say? You know, we've got to listen to the market. 151 00:09:14,720 --> 00:09:18,160 Speaker 2: I think our industry hasn't been great at listening to 152 00:09:18,200 --> 00:09:20,760 Speaker 2: the market. And we're not going to get everything right. 153 00:09:21,360 --> 00:09:24,760 Speaker 2: BONSA won't get everything right. We're not that naive. But 154 00:09:24,840 --> 00:09:27,080 Speaker 2: what we will do is we will listen and we 155 00:09:27,120 --> 00:09:30,880 Speaker 2: will improve and continually try and improve and deliver a 156 00:09:30,880 --> 00:09:35,120 Speaker 2: better service because ultimately, if we do that, then we'll 157 00:09:35,160 --> 00:09:39,320 Speaker 2: see more customers on board. And I think that is refreshing, 158 00:09:39,480 --> 00:09:42,800 Speaker 2: hopefully refreshing. But we will always strive to do better. 159 00:09:42,840 --> 00:09:45,800 Speaker 2: But I will leave it for territories to tell us where. 160 00:09:45,559 --> 00:09:48,320 Speaker 1: Next tim before I let you go. When do these 161 00:09:48,360 --> 00:09:52,040 Speaker 1: services commence? And I'm pretty sure it was announced yesterday 162 00:09:52,080 --> 00:09:54,560 Speaker 1: that they've already been open for booking. And what's it 163 00:09:54,600 --> 00:09:58,120 Speaker 1: been like in that first sort of twenty four hours. 164 00:09:58,840 --> 00:10:01,800 Speaker 2: In terms of booking so far? We have had hundreds 165 00:10:02,640 --> 00:10:08,679 Speaker 2: of bookings, Wow, which is really encouraging. So the news 166 00:10:08,760 --> 00:10:12,760 Speaker 2: is out there, that's fantastic. So the bookings are open 167 00:10:13,360 --> 00:10:15,280 Speaker 2: at the moment, and we have had as I say, 168 00:10:15,400 --> 00:10:18,360 Speaker 2: hundreds of bookings into and out of the territory already. 169 00:10:19,679 --> 00:10:23,000 Speaker 2: In terms of start dates, we start service from the 170 00:10:23,040 --> 00:10:28,280 Speaker 2: Sunshine Coast on the twenty ninth of November, from the 171 00:10:28,280 --> 00:10:32,720 Speaker 2: Gold Coast on the first of December, and between Melbourne 172 00:10:32,720 --> 00:10:35,959 Speaker 2: and Alys on the twelfth of December. So that was 173 00:10:36,080 --> 00:10:38,960 Speaker 2: very critical to us making sure that we offer the 174 00:10:39,000 --> 00:10:43,000 Speaker 2: ability for friends and family to reconnect over the holidays, 175 00:10:43,120 --> 00:10:45,880 Speaker 2: over the school holidays, and so we can you know, 176 00:10:46,520 --> 00:10:48,400 Speaker 2: we can all get to see each other more often 177 00:10:48,559 --> 00:10:49,640 Speaker 2: than these otherwise the case. 178 00:10:50,160 --> 00:10:53,760 Speaker 1: Well, BONSA CEO Tim Jordan, good to speak with you 179 00:10:53,840 --> 00:10:57,079 Speaker 1: this morning, and yeah, I think we're all hoping that 180 00:10:57,600 --> 00:10:59,920 Speaker 1: we've got Bonza in the territory for the long haul. 181 00:11:00,240 --> 00:11:02,199 Speaker 1: Thank you so much for your time today. 182 00:11:02,880 --> 00:11:04,880 Speaker 2: Absolute pleasure. Thank you, thank you.