Passengers stranded as Bonza enters voluntary administration

Photo illustration in Ukraine -  07 Dec 2021

The Bonza logo on a smartphone and a computer screen Source: AAP / Sipa USA

Budget airline Bonza has gone into voluntary administration after the sudden cancellation of all its flights. Analysts say the carrier is the victim of a dispute over plane leasing arrangements with off-shore partners.


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Bonza check-ins have been deserted at airports and passengers left stranded and scrambling to book on other airlines.

“We got a text sometime this morning that the flight had been cancelled...We are still getting a holiday … it's just costing us a lot more."

Others were caught completely off-guard by the cancellations.

"I don't know what I can do ... it's ridiculous to not give us any notice."

Aviation analyst Geoffrey Thomas says they've been caught in the middle of a dispute over Bonza's leasing arrangements with overseas partners that have grounded the airline and put it into voluntary administration.

"The new owners of these leases are essentially calling these leases in and saying we don't like these arrangements that were made ... The problem has been off-shore with the rug pulled from underneath them."

Federal Transport Minister Catherine King says the Government's focus is on stranded passengers.

"I spoke first thing this morning with Qantas and Virgin. They both have offered every assistance they possibly can give to get passengers home."

The Sunshine Coast-based airline launched in 2021 with plans to fly Boeing 737-Max-8s between 17 mostly regional airports on Australia’s east coast, but none to or from Sydney or Brisbane.

Transport Workers Union National Secretary Michael Kaine says Bonza was doing the right thing by targeting routes big players like Qantas had ignored.

"Today what we are seeing is chaos and mayhem. Chaos and mayhem yet again and regional communities are going to be hit hard."

Bonza has issued a statement:

"... 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 on-going competition in the Australian domestic aviation market."

It's a market, Catherine King says, with a chequered history for new entrants trying to compete with established operators.

"We are a small market, despite the fact we are amazing travellers and we do want to travel everywhere and all the time."

Geoffrey Thomas says Bonza will struggle to get back in the air after the day's chaos, given the reputational damage it has suffered.

But he believes the airline has shown the routes it's flying are viable for another player in the market.

 


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