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Bonza staff queue at Centrelink for emergency payments as airline administrators confirm April wages will not be paid (www.abc.net.au)

submitted 6 months ago by [email protected] to c/[email protected]

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[–] [email protected] 3 points 6 months ago (2 children)

I've never really thought before about how much money it takes to have an airline before other than "loads". Bonza has/had 6x Boeing 737s. Assuming a discount purchase price of about $80 million each, you can get an airline off the ground for under a billion dollars. I think that's less than I would have assumed.

I wonder now what it really costs per seat to operate? Let's simplify economy airline tickets to $100 per hour of flight time. Let's also assume that a plane spends a quarter of the time on the ground. So, 18 hours in the air at $100 per hour times 200 seats means a plane is generating $360k revenue per day.

I have no idea what running costs are - flight crew of 10? Lets double that to 20 for maintenance/customer service etc. Fuel? Maintenance? Airport fees? No idea what these add up to, but if you have over $2 Million dollars coming in per day as revenue, I have to assume I'm missing stuff here. Because I would not have thought an airline this small would have running costs that high. There's probably a good reason why I'm not running an airline!

I'd love to see what these numbers actually are.

[–] [email protected] 3 points 6 months ago

You wouldn't need to even buy the planes?

You might even be able to lease them.

Airport fees are expensive. Landing at melb for example I know costs a bomb which is why Avalon exists.

[–] [email protected] 1 points 6 months ago

You aren’t going to be able to do back of the napkin math on that one, it’s an incredibly complicated business.

There’s a reason most airlines have failed and many of the survivors have needed government bailouts. And the reason is not mismanagement across the board, although there’s plenty of that, too.