Bonza enters voluntary administration
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More news: Bonza has entered into voluntary administration and has appointed Hall Chadwick, according to multiple media reports.
Bonza founder Tim Jordan told staff in an internal note that all its aircraft have had repossession proceedings commenced by AIP Capital, the aircraft lessor, the Australian Financial Review reported.
The fleet of aircraft had been 49% held by Bonza's backer Miami-based 777 Partners and 51% owned by the management of AIP Capital.
What they said: “This was a surprise to both ourselves and 777 Partners. We are currently assessing all options and will an update here just as soon as we have more information available to share. As a consequence to this, all first wave flights from all bases have been cancelled," Jordan said.
Bonza suspends flights, considers 'viability' of business
The news: Regional airline Bonza has cancelled flights across Australia, stranding hundreds of domestic passengers, as it considers "the ongoing viability of the business".
The context: Bonza flights to and from its Sunshine Coast base, as well as Melbourne departures to Rockhampton, Gladstone and Tamworth, were all cancelled this morning.
At around 8am AEST Bonza CEO Tim Jordan released a statement confirming that all services would be "temporarily suspended", reports from The Australian, ABC News and The Australian Financial Review said.
"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."
The budget airline backed by Miami private equity firm 777 Partners began flights in early 2023. Last week, the AFR reported that Bonza would reduce the number of flights from Melbourne to the Gold Coast to one per week from 1 May, and make further cuts to flights between a number of Queensland destinations.
The sources: AFR, The Australian, ABC
