Bonza administrators tell first creditors' meeting they are hopeful airline can be saved
One Bonza plane has left the country and four others are expected to follow. (ABC Sunshine Coast: Jessica Ross)
About 20 parties, including investors, airlines and travel companies, are in talks to save Bonza, administrators have revealed at the first creditors’ meeting for the embattled airline.
Representatives from Hall Chadwick told attendees on Friday morning they were hopeful a transaction would happen in the “not too distant future”.
The ABC understands the airline’s debts total more than $116 million, including $77 million in loans, $16 million owed to trade creditors, $10.5 million to airports, $4.6 million to the plane lessors, $5.3 million in employee wages and entitlements, and $58,000 to customers for cancelled flights.
Customers have been told no refunds are being processed and they should instead contact their bank or insurance provider to recoup lost money.
Any flights after May 14 have not been officially cancelled, but customers have been warned it’s unlikely they will return to the air next week as hoped, as the airline does not have access to any of its existing fleet.
The budget carrier’s aircraft leases were terminated on April 29 by lessor AIP Capital, which has enforced its right to repossess the planes.
Administrators revealed that 737-Max 8 “Bruce”, which had already left the country, had been leased from Canadian airline Flair but the agreement expired in February.
“Bruce” took off from Sunshine Coast Airport on Thursday morning, bound for a refuelling stop in Honolulu before heading to its final destination in Calgary.
The four remaining planes — “Bazza”, “Shazza”, “Sheila” and “Malc”, which are owned by AIP Capital — are expected to be sent overseas to be used by other carriers.
Hope for new planes
It’s understood creditors were also told the company could potentially source other aircraft and resume operations, but that may take up to four months.
A statement from Bonza chief executive Tim Jordan was read at the meeting, where he “sincerely apologised” to everyone caught up in the company’s collapse.
Mr Jordan said he was hopeful of a “positive resolution” for the airline’s future.
The meeting also heard that administrators would be investigating the circumstances surrounding the company’s failure, and asked creditors to supply any information that could assist them.
Employees a ‘high priority’
More than 300 staff are now approaching six weeks without pay, after they were stood down three days before pay day and told they would not receive their wages for the entire month of April.
Administrators told the creditors that employee entitlements would be given high priority in the case of liquidation.
A second creditors’ meeting will be held in coming weeks, where they will vote on the future of the company.