Zinc Aviation, founded by former Qantas executive Peter Kelly, aims to become Australia’s first independent ultra-low cost carrier, modelling itself on Irish budget airline Ryanair with flights anchored at Western Sydney International Airport
A new airline is hoping to shake up the notoriously tough Australian aviation market by drawing on the success of a thriving European rival, as carriers face the prospect of soaring jet fuel costs that could ultimately be passed on to passengers.
Zinc Aviation plans to use ultra-low-cost giant Ryanair as its blueprint. The brainchild of former Qantas executive Peter Kelly, the fledgling carrier is seeking approximately $140 million to get off the ground.
Kelly claims he has the winning formula to sidestep the pitfalls that have brought other Australian airlines to their knees.
He reportedly intends to model the venture on Irish budget carrier Ryanair, according to the Financial Review. Zinc’s strategy will centre on “sweating the assets and running the planes for 12 hours a day minimum”.
The airline’s website bills itself as “Australia’s first independent ultra low cost carrier.”
It goes on to state: “Zinc is being established to exploit a once-in-a-generation structural shift in Australian domestic aviation – the opening of Western Sydney International Airport.
“Purpose-built for cost leadership and price discipline. Founded by a team with direct experience building successful Australian domestic airlines and uLCCs from the ground up.”
Australia has a lengthy track record of failed aviation ventures, with carriers such as Compass, Impulse and Bonza all having ceased operations. “Zinc’s founder has watched every one of them. Each failure was predictable. The business models were flawed from inception – and he could articulate exactly why, long before the market rendered its verdict,” the website reads.
“Structural slot and gate constraints of SYD. Structural cost disadvantage. Undercapitalisation. The wrong aircraft. The wrong routes. The wrong moment. He knows precisely why they failed. Zinc has been engineered so that none of those reasons apply.”
The carrier claims that for the first time, a fresh domestic airline will gain access to the Sydney market without the limitations that have hampered every previous rival.
The airline will run a single fleet type – the Airbus A321neo. It will comprise a targeted network of high-frequency trunk routes based at WSI, Melbourne, Adelaide and Brisbane.
“A novel base-assigned operating model, unprecedented in the Australian context, keeps aircraft productive, crew costs lean, and overnight complexity eliminated. The model is stress-tested,” the website read.
According to the Financial Review, Kelly is working to obtain financing to cover aircraft deposits and support its operations.
However, the airline is launching at an extraordinary moment for worldwide fuel prices. The Middle East conflict has pushed up international oil prices and presents a risk to jet fuel expenses, which could be transferred to passengers.
