Bonza's announced that they're cutting five of their routes because there's not enough demand.
👉 Background: Bonza is the new kid on the budget-airline-block. It started operating in Australia just six months ago. They mainly fly to regional and remote parts of Australia for low costs. In fact, 93% of their routes aren't currently flown by any other airline.
👉 What happened: But now, Bonza's announced that they're cutting five of their routes because there's not enough demand. And these changes are going to come into effect next month.
👉 What else: This business model of more "niche" flight routes has been pretty successful in parts of Europe and Asia. But, Bonza's having a tough time replicating that success in Australia.
💡There are no guarantees that a successful business model from one part of the world can be copied-and-pasted with success. You need to adapt the business model to the local context.
💡Australia's a country with a lot of land, and not a lot of people. So Bonza's challenge is having a big enough customer base of regional travellers to operate consistently.
💡Back in 2000, Starbucks entered the Aussie market. And in a country known for its sophisticated coffee culture, they weren't very welcome. Which is why by 2008, Starbucks had to close down over 70% of their Australian stores.
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