Bonza, a low-cost airline, entered voluntary administration on Tuesday following the unexpected repossession of its entire fleet, which left CEO Tim Jordan caught off guard.
Passengers found themselves stranded at various airports when Bonza abruptly suspended all services on Tuesday without prior notice, as the airline’s owners assessed the business’s future viability.
Documents filed with the Australian Securities and Investments Commission (ASIC) reveal that Bonza appointed Hall Chadwick to oversee the administration process for its operating and holding company.
The airline’s fleet remains grounded until the end of Thursday, with administrators advising passengers with bookings not to proceed to the airport.
In a statement, Tim Jordan acknowledged the disruption, stating, “We apologize to our customers who are impacted by this, and we’re working as quickly as possible to determine a way forward.”
Following the cancellations, Transport Minister Catherine King stated that her department had reached out to Bonza, emphasizing the importance of keeping passengers informed of their options and consumer rights.
A hotline was opened by the transport department for stranded Bonza passengers, with both Qantas and Virgin offering assistance to affected travelers.
Meanwhile, reports surfaced indicating that Bonza’s fleet of Boeing 737 Max 8 aircraft had been repossessed, raising questions about the airline’s future.
The airline’s private equity owners, US firm 777 Partners, which also partially owns Canadian low-cost carrier Flair, faced similar challenges in 2023 when some of Flair’s aircraft were repossessed.
Bonza, established in January 2023, faced operational challenges, including aircraft shortages and route cancellations due to low patronage.
Despite its struggles, the airline aimed to serve the leisure market primarily through direct routes between regional airports, operating from bases such as Sunshine Coast airport, Melbourne’s Tullamarine, and the Gold Coast.
However, regulatory hurdles, particularly regarding Sydney airport, hindered Bonza’s expansion efforts, limiting its access to lucrative markets.
