Australia’s aviation industry, dominated by the Qantas-Virgin duopoly, may have claimed another victim – but it’s far from the first to fall
While Tuesday’s developments may come as a blow to competition in an industry dominated by a duopoly, the abrupt cancellation of services and seizure of planes will trigger memories of a long history of fallen Australian carriers.Bonza transported more than 750,000 passengers across Australia in the 15 months between its launch and sudden grounding this week. In a fiercely competitive industry dominated by Qantas group and Virgin, it had been a turbulent birth for the airline.
Tony Webber, CEO of industry analyst firm Airline Intelligence & Research aviation analyst and former chief economist at Qantas, said that while Bonza’s business model was different and not trying to directly compete with the major airlines, it can be an uphill battle to gain a foothold in the Australian aviation market.
Webber noted Qantas had roughly 65% market share; together with Virgin, the two operate about 90% of the market. Initially owned by its Singaporean parent company, Virgin Australia acquired the airline over several years, coming to fully own it by 2014. While the story of BackpackersXress eerily resembles Bonza’s tongue-in-cheek “bogan” branding and marketing push, this low-cost airline never actually took to the skies.
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