Summary
- Dreams shattered: Both Bonza and Rex failed to break into Australia’s airline duopoly, met with closure.
- Rex administration: Domestic flights grounded, Virgin Australia offers rebooking for affected customers.
- Uncompetitive duopoly: Qantas and Virgin Australia prices likely to remain high after Bonza and Rex exits.
In just three months, the two airlines that had the nerve to take on the Australian domestic market have failed, both unable to break into the powerful duopoly that has ruled the sector for close to 70 years. On April 30, ultra-low-cost carrier Bonza shut its doors, and today, it is the turn of Regional Express Holdings Limited (Rex) to enter voluntary administration.
The dream is over
The rumors of Rex’s demise have been swirling for a while, and it came to a head over the weekend after a particularly damaging piece…
