The US private equity giant funding Australia’s new budget airline Bonza
As new budget airline Bonza takes to the skies, many aviation experts are questioning how sustainable the low-cost carrier will be. Bonza's unique approach involves flying large, 186-seater aircraft from their Sunshine Coast base to mostly regional destinations only a few times a week. And all while promising super low airfares. It's a model some commentators have had a hard time understanding. So who is funding Bonza, what's their approach, and how long will they keep pouring cash into a loss-making business? Bonza is funded by 777 Partners, a multi-billion-dollar US private equity giant that part-owns a similar Canadian budget airline called Flair. Among their other investments is a 20% stake in Melbourne Victory football club, as well as controlling ownership of major European clubs including Sevilla in Spain and Genoa in Italy. 777 founder Steve Pasko was on Bonza's inaugural flight on Tuesday and said he saw an opportunity in the Australian aviation market, which lacks an independent budget carrier. (Jetstar is owned by Qantas.) "Canada is one of the most significant countries in terms of average income — it has one of the highest ticket prices of any country in the world and it's dominated by two airlines," he said. "We found that Australia had a lot of the same demographics and we felt it was a very attractive market for low-cost carriers."<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-02-02/unaligned/the-us-private-equity-giant-funding-australia2019s-new-budget-airline-bonza
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The US private equity giant funding Australia’s new budget airline Bonza
As new budget airline Bonza takes to the skies, many aviation experts are questioning how sustainable the low-cost carrier will be. Bonza's unique approach involves flying large, 186-seater aircraft from their Sunshine Coast base to mostly regional destinations only a few times a week. And all while promising super low airfares. It's a model some commentators have had a hard time understanding. So who is funding Bonza, what's their approach, and how long will they keep pouring cash into a loss-making business? Bonza is funded by 777 Partners, a multi-billion-dollar US private equity giant that part-owns a similar Canadian budget airline called Flair. Among their other investments is a 20% stake in Melbourne Victory football club, as well as controlling ownership of major European clubs including Sevilla in Spain and Genoa in Italy. 777 founder Steve Pasko was on Bonza's inaugural flight on Tuesday and said he saw an opportunity in the Australian aviation market, which lacks an independent budget carrier. (Jetstar is owned by Qantas.) "Canada is one of the most significant countries in terms of average income — it has one of the highest ticket prices of any country in the world and it's dominated by two airlines," he said. "We found that Australia had a lot of the same demographics and we felt it was a very attractive market for low-cost carriers."<br/>
