As the leading contender to operate budget flights from Shellharbour airport is grounded, questions are being asked whether plans to upgrade the airport to accommodate larger planes should be considered.
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On Tuesday, April 30, low-cost regional carrier Bonza entered voluntary administration.
The company's finances had been the focus of speculation since it was reported that advisory firm KordaMentha had been brought in by Bonza's backers.
But a statement from Bonza CEO Tim Jordan confirmed that the start-up's fleet of purple planes were remaining on the tarmac as the company sorted its affairs.
"Bonza has temporarily suspended services due to be operated today, as discussions are currently underway regarding the ongoing viability of the business," he said.
"We apologise to our customers who are impacted by this and we're working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market."
Bonza was suggested as one of the leading contenders to operate low cost services out of Shellharbour Airport if a mooted $20 million upgrade of the airport went ahead.
Council is now considering community feedback on the proposal, which also suggested a limited upgrade to the terminal or to keep the airport as it is.
The Mercury understands that while no airline had committed to operating additional passenger services to Shellharbour, the council was in advanced talks with Bonza, whose business model had been flying between destinations that were not otherwise served by a national carrier.
Councillor Rob Petreski, who cautioned against a 'build and they will come' mentality in a council meeting in February, said Council should be wary of committing additional funds to the airport.
"Our residents, quite rightfully, demand prudent decision-making when we're spending their money," he said.
Kiama MP Gareth Ward said Shellharbour residents shouldn't give up on the dream of flying to destinations around Australia without having to deal with Sydney traffic, just yet.
"I would love to see a budget carrier in our region which makes air travel more affordable for our local people," he said.
"When you look at the catchment for Shellharbour Airport, there is a huge population to draw on."
The Shellharbour Airport Masterplan estimates the airport had a catchment of nearly half a million people, stretching from Helensburgh to Ulladulla and Moss Vale, making it the ninth largest population centre in Australia.
RDA Illawarra CEO Selena Stevens said based on these figures there would be a market for a budget carrier to operate out of Shellharbour.
"Absolutely, there are enough people to commercially support a budget carrier or carriers into the region."
The Illawarra-Shoalhaven Regional Plan says the government recognises the "potential" of the airport to "support regional economic development, tourism and employment" and cals upon councils to continue to manage and protect Shellharbour Airport's land and airspace to support aviation operations "including regular public transport".
Mr Ward said the airport could also be an economic and defence hub, similar to HMAS Albatross, south of Nowra.
"The defence partnership has generated hundreds of local jobs in the Shoalhaven and the Shellharbour Airport has the capacity to do something similar for aviation businesses in the Illawarra."
But with another hopeful entrant to the Australian aviation industry once again hitting the wall and the opening of the Western Sydney Airport in 2026, Shellharbour MP Anna Watson said council should stick to other priorities.
"They should be looking at their priorities and go back to the drawing board," she said. "The core business of council is not airports, it's roads, rubbish and rates."
With Anna McGuiness
