In just three months, Bonza has collapsed and Rex is on the brink of the abyss. What went wrong?

Australian aviation looked successful in 2023.

Rex, the long-standing regional airline of small turboprops that emerged from the ashes of Ansett, has been expanding its fleet of leased Boeing 737s, expanding the network of flights between capital cities it launched at the height of the pandemic.

The airline offered Australians a real alternative to the Qantas and Virgin duopoly not seen since Tiger Air.

Meanwhile, the budget airline Bonza had finally started operating. This airline would fly jet aircraft between previously unconnected regional centres. This would democratise air travel and further reduce the air fares of the dominant airlines.

The ...