Bonza: Passengers stranded as Australian airline enters administration

Australia’s newest budget airline has gone into voluntary administration, after abruptly cancelling all of its flights on Tuesday.

Bonza’s financial woes have left thousands of passengers stranded around the country.

Operating since last year, the carrier had been the first to launch in Australia since 2007.

Aviation remains one of the nation’s most concentrated industries, dominated by Qantas and Virgin Australia.

“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 aviation market,” Bonza said in a statement.

The company has appointed Hall Chadwick as voluntary administrators for its operating and holding company, according to documents filed with Australia’s corporate regulator.

Bonza’s eight planes – a Boeing 737 Max fleet – were repossessed by creditors on Tuesday, according to local media. The airline has not confirmed the claim.

Passenger Mel Watkins, who was due to fly to Launceston for a family holiday, told the Australian Broadcasting Corporation (ABC) that she was “absolutely shattered” by news her flight had been axed.

“I thought it’s an Australian airline, and we’d be better off supporting a small company, but it turns out no,” she said.

The federal transport department set up an emergency help hotline for passengers on Tuesday, after planes were cancelled across Queensland and Victoria.

Qantas Group and Virgin Australia – which account for 95% of the nation’s domestic aviation market – each offered to assist anyone stranded mid-journey.

Based in Queensland’s Sunshine Coast, Bonza launched in 2021, promising low-cost fares and a suite of new domestic destinations.

After delays with regulatory approval, it finally took to the skies in 2023 but aircraft shortages and low patronage saw it slash several routes in quick succession.

Those setbacks, combined with its inability to secure access to take-off and landing spots in the lucrative Sydney market, quickly sparked speculation over its future.

Australia’s main transport union is now seeking an urgent meeting with the airlines leadership to discuss how the sudden closure will impact workers.

“Bonza must ensure staff are prioritised and informed as this process plays out,” the national secretary of the transport workers union, Michael Kaine said, according to the Guardian.

Mr Kaine also criticised the “unchecked corporate greed” in the aviation industry that’s led to higher fares and warned that any carrier attempting to break into the market “has little chance of survival”.

SOURCE: YAHOO