Is There Room for a 3rd Independent Airline in Australia?

Bonza’s routes connecting smaller towns with big cities were heavily celebrated by regional Australians who’d long pined for flights that could take them far away.
In some locations, airports were buzzing and crowded as eager travellers waited for their flights.
For anyone who has lived in regional Australia, the picture is unusual.
Smaller airports typically offer minimal routes. Bonza brought a buzz to some of the nation’s quietest airports.
Just as it appeared all was well, Bonza crash-landed. There was no buyer for the business placed in administration, and hundreds of staff lost their jobs.
Countless regional Australians lost a direct service out of town. So, what went wrong?
At the time Bonza announced its end, experts pointed to the well-publicised struggles of new air carriers entering the country’s competitive aviation market.
Regardless, the airline was scrapped before its first birthday.
Fellow Aussie carrier and well-loved brand Rex remains troubled.
East-West Airlines folded a year after take-off in 1990 due to a lack of revenue after competitors lowered their prices.
Compass Airlines had to use competitor terminals, which ended its existence in 1991. A year later, the airline re-emerged as Compass Mk II but only survive a few months.
From there, Impulse took off in regional New South Wales, but when Qantas noticed Impulse’s flight route between Newcastle and Melbourne, it fought back with a route of its own.
Impulse dropped the service, followed by Qantas dropping the route shortly after.
Qantas would go on to purchase Impulse, which formed the basis of the QantasLink regional services.
Ozjet launched in 2005 and only made it through a few short months.
Then there’s the behemoth that was brought down by a combination of factors, many of which still plague Australian airlines today.
Iconic Australian airline Ansett went into voluntary administration more than 20 years ago, while losing $1.3 million a day, plus $500,000 in interest payments on borrowings.
Sixty-five years of aviation history ended in 2001.
Griffith University economics expert Graeme Hughes says airlines rely upon numerous factors for success or failure.
“The Australian aviation industry is undergoing a period of consolidation,” Hughes told The Epoch Times.
“The collapse of Bonza and the financial difficulties faced by Rex highlight the challenges of operating in a highly competitive and cost-sensitive market.
“Factors such as fuel prices, labour costs, and intense competition have made it increasingly difficult for smaller airlines to survive.”
Staff costs and inflexible unions were said to have contributed to Ansett’s sad ending all those years ago.
Airlines require a complex formula of support to stay in the air—remove some pillars of support, and they’re at risk; remove them all, and it spells doom.
“While Australia may be able to support multiple major airlines, it requires long-term support from governments, industry, and consumers,” Hughes said.
“Currently, Sydney West Airport is scheduled to open in 2026, and that will eliminate the issue of Sydney shutting down operations at 11 p.m. due to a curfew,” he told The Epoch Times.
“Adelaide is the only other airport with a curfew. Kingsford Smith can only permit 80 take-offs and landings currently, which is a problem that Australia’s busiest airport is not operating at 100 percent capacity.”
Australia’s smaller population compared to Asia, Europe, and North America, also means opportunities for airline business revolve heavily around the three population centres, particularly Sydney, the biggest in the country.