I follow an airline forum, to learn about new routes and hopefully bag cheap fares before they become well known.
A thread has been opened about the 777 backed Bonza airline collapse. It seems well informed, by folk who understand the Oz airline business and finance.
The whole business venture sounds completely crazy, there’s so many loony / dodgy strokes (alleged) that any other outcome than going bust would seem impossible.
The basic business plan was to provide low cost flights, on routes not served by other airlines, (mainly because there was no demand)
If it ever stood a chance of succeeding, it would have to be based on filling low capacity turbo prop aircraft.
777 then signed a deal with Boeing to buy 10 of their 737 jets, each with a capacity of 170, way beyond what could ever be sold on their chosen routes.
There are so many (alleged) blags, including trading and continuing to sell tickets when they knew they were already bust and planning to fly their planes out of Oz before pulling the plug, so they didn’t get impounded.
There’s way too much detail to fit in this thread, but it’s beyond belief that if such info is so readily available, why did Mosh even give them the time of day and continue to do so ? Surely the most basic due diligence check would come back with a big red Pffft Swerve These Immediately rating.
Even with the Mosh’s business track record, the reported exclusivity deal must have get out clauses in the event of reputational risk, let alone alleged criminal malpractice.
As for the EPL, surely they should also be seriously challenging Mosh, that he must be having a giraffe trying to sell to 777 and to sort his act out, if he actually wants to sell.
As many have said, the whole deal doesn’t appear to make any sense.
Anybody with time to kill, here’s the thread.
https://www.pprune.org/australia-new-zealand-pacific/658931-rip-bonza-6.html