MENCARI - Delivered fearless reporting to you
Posts
🗞️Bonza Low-Cost Airline Temporarily Suspends Flights Amid Repossession Rumors, entered voluntary administration

🗞️Bonza Low-Cost Airline Temporarily Suspends Flights Amid Repossession Rumors, entered voluntary administration

Today’s email is brought to you by Empower your podcasting vision with a suite of creative solutions at your fingertips.

Bonza entered voluntary administration on Tuesday, hours after abruptly cancelling all flights after its CEO was surprised by the repossession of its fleet.

Accounting firm Hall Chadwick, which is overseeing the administration of Bonza, has outlined the upcoming actions for the company. The fleet is currently grounded until Thursday 2 May 2024.

This morning, the notice was sent to the Australian Securities and Investments Commission (ASIC). It says that as external administrators, Richard Albarran, Kathleen Vouris, Brent Kijurina, and Cameron Shaw from the accounting firm Hall Chadwick have been hired.Earlier, Local domestic flights operated by low-cost carrier Bonza are cancelled, and it is rumoured that the aircraft have been repossessed.Early departures and arrivals from its Sunshine Coast base in Queensland, as well as flights from Melbourne to Rockhampton, Gladstone, and Tamworth, have been cancelled. In a statement issued at about eight in the morning, Bonza CEO Tim Jordan confirmed that all services were "temporarily suspended."According to Jordan, Bonza has put a temporary stop to operations today as talks about the company's continued viability are presently taking place."We're working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market," he said, extending his apology to the affected customers.Once the Civil Aviation Safety Authority finally gave the low-cost airline permission to operate, it started operating flights out of its hub on the Sunshine Coast in late January of last year.

Nothing is free like a free press. Give now to help sustain independent journalism in your community.

It's evident from recent events that there has never been a better moment to support local news. Donate now to help sustain independent reporting.

For additional information, the airline asked Bonza passengers to contact its guest services or speak with a Virgin Australia customer representative. In an effort to help travellers who were left stranded by Bonza's widespread cancellations, Transport Minister Catherine King stated that she had been in contact with Virgin and Qantas.

From Qantas Statement

We understand today’s news about Bonza will have a significant impact on many people’s travel plans.

For Bonza customers who are due to travel today or who are stuck away from home, Jetstar and Qantas will assist by providing flights at no cost where there are seats available.

Of Bonza’s 36 routes, there are only six overlapping routes with either Jetstar or QantasLink:

Melbourne – Gold Coast (Jetstar)
Melbourne – Sunshine Coast (Jetstar)
Avalon – Gold Coast (Jetstar)
Gold Coast – Cairns (Jetstar)
Melbourne – Mildura (QantasLink)
Melbourne – Alice Springs (QantasLink)

If there is another close alternative route that Jetstar or Qantas operates, customers who were booked to travel today or are stuck away from home can also travel at no cost (e.g. Brisbane as an alternative to Gold Coast, or Melbourne as an alternative to Avalon).

Bonza customers can contact Jetstar on Live Chat or 13 15 38, or Qantas on 13 13 13 to book these seats.

We’re continuing to monitor the situation and will provide updates of any additional support for Bonza customers.

Bonza's uncertain future, stranded travellers, and the increasing number of aviation jobs at risk, according to the TWU, are all signs of the larger problem of aviation instability and the requirement for regulatory oversight. TWU is requesting an urgent meeting with Bonza in order to make sure that employees are given priority during this challenging and uncertain period.

TWU National Secretary Michael Kaine said: This is an extremely distressing time for workers and stranded passengers. Bonza must ensure staff are prioritised and informed as this process plays out.

“Bonza and any other airline attempting to enter the Australian aviation market has little chance of survival. Despite speculation of issues behind the scenes at Bonza, this is an industry dominated by aggressive competition and unchecked corporate greed that will squeeze out any new entrant.

We’ve seen the collapses of Ansett and Virgin Australia. Even Qantas has gone cap-in-hand to governments and taken wage freezes from workers when market competition has been its own downfall, while hoarding all the profits when the airline is on top.”

He added Leaving this critical industry ‘up to the market’ as the Morrison Government chose to do only allows Qantas to become more powerful and untouchable.As Qantas reports $3.72 billion in profits over the course of 18 months, Bonza may be about to collapse. The airline that has been undermining employees, passengers, and taxpayers has been able to dominate the market thanks to the absence of regulations in the aviation industry. Only a few days after Bonza refuted the advisory firm KordaMentha's involvement, nationwide flight cancellations have left travellers and employees stranded, and the recently launched low-cost airline acknowledges that it is still evaluating the business's feasibility. The Trade Union Movement is advocating for the establishment of a Safe and Secure Skies Commission to supervise and establish guidelines for the aviation sector. This is a crucial industry that is plagued by fierce competition and privatised airlines and airports that prioritise profits over the welfare of employees and travellers. Following rumours that restructuring partner Sebastian Hams, who previously worked with Ansett and Virgin Australia—two other Australian airlines that were destroyed by fierce competition—is spearheading KordaMentha's work with Bonza, the cancellations have occurred.

Opposition Leader Peter Dutton said “ I wanted to cover off on, obviously in relation to Bonza Airlines. There are a lot of people – employees and customers, who are in a really difficult position today. I want to send our thoughts to all of those who are adversely affected. People who have worked hard in that business and are now without a job, or facing the prospect of losing their job, people who have lost money as suppliers, people who are uncertain about their own travel arrangements”.

“I want to acknowledge the work of Qantas and Virgin, and the other airlines who are providing support to those passengers who are either stranded and need to go and see family members, need to travel for business or whatever it might be, and I'm grateful for the fact that those other airlines have stood up to provide that support.” He added.

Federal Transport Catherine King mentioned on ABC radio Melbourne Drive that the decision to continue operating Bonza's four planes rests solely with the administrators. However, she expressed doubt that this would be the case.

Got a News Tip?

Contact our editor via Proton Mail encrypted, X Direct Message, LinkedIn, or email. You can securely message him on Signal by using his username, Miko Santos.

🗞️Bonza Low-Cost Airline Temporarily Suspends Flights Amid Repossession Rumors, entered voluntary administration

From Qantas Statement

Got a News Tip?

More on The Evening Post AU