Bonza Bust | ABC Behind the News

[Music] last year Australia said good day to its newest Airline oh my goodness our aircraft is arriving today so excited it promised to be very Aussie with casual uniforms and some very AA playing names Bas and Shasha who is Bing shazak Koba more importantly it promised to open Australia up with new routes and cheaper flights between Regional cities but things didn't quite go to plan we just found out off the news this morning that all bonds and flights are cancelled well I got up at 4:00 in the morning around 10 minutes before the boarding time they announced that it's cancelled last week the airline went into voluntary Administration which basically means it can't pay its debts and for now all flights are cancelled this isn't the first time something like this has happened ladies and gentlemen I'd like to apologize seems Australia's airline industry is experiencing some ongoing difficulties if you could just turn to your screen while I run you through the [Music] details the story of commercial flight in Australia starts with quantis Queensland and Northern Territory aerial Services started up in 1920 but it was soon joined by other airlines in in fact before World War II Australia had one of the busiest Airline Industries in the world but that didn't last the government decided to buy quantis and made it a national airline it also brought in a law that said only two Airlines were allowed to fly between major cities in Australia making it much harder for other companies to compete the two airline policy ended in the '90s and Quantas became a private company again its main rival anet ran into trouble and collapsed in 2001 but virgin was waiting in the wings and we were back to having two main Airlines over the years smaller companies have come and gone and while Rex has recently expanded as of last year 94% of air travel in Australia was either with these guys or these guys ladies and gentlemen you may be noticing a lack of competition which may impact the quality and price of this flight should you wish to use another airline too bad there aren't any many experts say the lack of Airline competition has had a big impact on customers competition is important because it gives the customers choice and it makes the airlines in this case work really hard to provide the services at a fair price to encourage people to use that service that's why many we were excited about bonsa which was the first new Budget Airline to start up in Australia in 15 years bonsa was helping territorians particularly in Allis Springs it has been of great benefit to the industry the tourism industry in central Australia as well so what went wrong now please remain seated as we explain the difficulties in running an airline in Australia flying airplanes is really expensive and bonsa tried to fly between places that the other airlines didn't and those routes relied on a lot of people buying seats on those routes which might not have eventuated Australia doesn't have a big population which makes it harder to fill up a lot of planes plus the fact that we've had two big Airlines for so long makes it harder for new companies to compete we are determined as a government to make uh everything we can do to try and improve competition some are hoping that bonsa will be able to bounce back or that another company will fly in we really hope um if bonsa does not continue to fly someone else will come in and take up that capacity so it looks like we can expect some turbulence but authorities are trying to find a way to keep us all in the air

Channel: Aviation Projects

Views: 839

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Id: zA0Zyhrnh2o

Length: 4min 25sec (265 seconds)

Published: Tue May 07 2024