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Bonza given green light to fly to Gold Coast as fares crash

Ayesha de KretserSenior reporter

Pressure on airfares could ease ahead of Christmas after the aviation regulator gave Bonza the green light to use its Canadian sister airline’s planes and crew to fly to the Gold Coast.

Bonza was forced to stop flying from Darwin and put plans to fly from Avalon, the Whitsundays and Cairns into the Gold Coast on hold after it failed to satisfy Civil Aviation Safety Authority approval processes around integrating Canada-registered aircraft from parent Flair Airlines.

Flair Airlines is partly owned by 777 Partners, which operates Bonza in Australia. Bloomberg

The challenger airline said it would immediately resume flights and cut fares as a way of thanking customers for their patience. On Tuesday, it started flying from the Whitsundays, as it creates a second base on the Gold Coast with the two wet leased Flair aircraft.

CASA approval comes as new analysis showed Bonza’s arrival onto the Melbourne to Gold Coast route – where all six domestic airlines now fly – in mid-November prompted as much as a 54.4 per cent drop in fares from rival Virgin Australia.

Analysis conducted by the Australian Airport Association on behalf of Melbourne Airport showed December last year was “the most expensive month in Australian aviation history, especially around the Christmas week”.

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“The average domestic airfare for December 2022 was $565. In contrast, the average fare for the Gold Coast-Melbourne route is $168 in December 2023, a 70 per cent lower average score highlighting the changes post Bonza servicing this route in the aggregate airfares,” the analysis found.

It suggested “Virgin Australia is directly competing for passengers with Bonza” by reducing its airfares on the days Bonza flies to match the Bonza rates.

“On certain days Virgin decreases its airfares to undercut Bonza’s fares especially on key pre-Christmas travelling days. The contrast here is stark because prior to Bonza flying on this route, the lowest fares on this route averaged at $307 for Virgin Australia,” the Australian Airport Authority research said.

Ayesha de Kretser is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors. She has previously reported on banking, mining and commodity markets. Connect with Ayesha on Twitter. Email Ayesha at ayesha.dekretser@afr.com.au

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