Bonza grounds fleet pending discussions on voluntary administration

National weather forecast for Tuesday April 30

Bonza will ground its entire fleet until later this week pending discussions on whether the budget airline will be able to operate during its voluntary administration period.

ASIC documents show the low-cost carrier, which was founded in late 2021 and only began flying last year, is now in external administration.

Administrators Hall Chadwick said the entire fleet would be grounded up to and including Thursday this week, as key parties consider whether the company can continue operating during administration.

Workers’ futures at the company are also under consideration as Customers with bookings up to and including Thursday are advised not to travel to the airport.

“The discussions regarding ongoing trading are occurring over the forthcoming days and the administrators will be in a position to update all stakeholders as the matter progresses,” Hall Chadwick said in a statement.

Customers can call Hall Chadwick’s hotline on 03 8678 1600 for more information. The transport minister has also set up a hotline for passengers. It can be contacted at 1800 069 244 and is available only until 10pm today.

Bonza chief executive Tim Jordan this morning confirmed the airline had temporarily suspended services today amid discussions regarding the ongoing viability of the business.

“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,” he said after flights were cancelled across the country.

The federal government called on both Virgin Australia and Qantas to help out stranded Bonza passengers after the budget airline confirmed it “temporarily suspended” services.

“I am aware of reports this morning of Bonza flights being cancelled,” Transport Minister Catherine King said.

“I have spoken to Qantas and Virgin CEOs this morning and both airlines stand ready to assist stranded passengers needing to get home.”

A Bonza aircraft is towed away from the gate at Melbourne Airport.

King said she expected Bonza to keep passengers informed of their options and their consumer rights.

Virgin had already reached out to passengers stranded “mid-journey”, while Qantas offered to help travellers affected by Bonza’s cancellations.

The two major airlines, as well as Qantas-owned Jetstar, are offering complimentary seats to those passengers.

Bonza’s website appears to not be accepting bookings, with reports users are unable to select departure or arrival dates through the online booking tool.

Flights cancelled around the country

All flights departing from the Sunshine Coast scheduled to land in Gladstone and Rockhampton this morning were cancelled, along with some leaving from Melbourne Airport.

It comes just days after the airline announced it would scale back flights nationally.

One customer, Tracy Hilbert, was left stranded at Tullamarine Airport in Melbourne after she was told her flight was cancelled as she waited at the gate.

“I’ve heard that all the planes today have been cancelled,” she said.

Hilbert, who booked her flight to see her family after her father died, said she hadn’t been given any warning.

“It’s just really hard today because I should have been up there now and with my mum, my brother, and my other family,” she told Today.

Debate over future of Aussie travel

Vision from Tullamarine Airport this morning shows a Bonza aircraft that was scheduled to fly to Gladstone in Queensland being towed after it was cancelled.

The Australian Financial Review reported aircraft Bonza operates on a long-term lease had been seized.

Quentin Long from Australian Traveller told Today Bonza had been a fantastic idea that brought flight service to under-served regions.

“The business model is really innovative, which was, ‘We’re going to connect regional centres to regional centres’,” he said.

“And the problem with that is you needed mass take-up, and there were not that many people in those areas to be able to take it up.

“So it was a really interesting, innovative but challenged business model from the start.”

Flight Centre CEO Graham Turner earlier said his organisation hadn’t been able to contact Bonza for any confirmation about what was happening.

“With all these cancellations, and not just this morning, but, they have been happening for the last few weeks, the news doesn’t look that good,” he told Today.

“But we haven’t heard anything official yet.

“It is one of the problems with the domestic aviation industry in Australia, where generally it’s been thought two main domestic carriers is all that the market can stand.

“But hopefully that’s not true.”

9News understands that Shadow Minister for Transport Bridget McKenzie has called on Prime Minister Anthony Albanese to save the budget airline.

Bonza pitched itself as a “low-cost, ultra-Aussie airline” when it launched into the Australian market on January 31, 2023.