Bonza owes money to almost 60,000 customers, hundreds of staff, and 120 suppliers, court hears
Bonza aircraft remain grounded as the company’s future hangs in the balance. (ABC Sunshine Coast: Kirra Grimes)
A lawyer for the administrators of budget airline Bonza has revealed that nearly 60,000 customers have been caught up in the company’s collapse.
In a hearing in the Federal Court of Australia in Sydney, James Hutton SC told Justice Elizabeth Cheeseman up to 20,000 participants could attend the first creditors’ meeting on Friday.
“It is very difficult to see how 20,000 people could ever be accommodated at a physical meeting — that would require a stadium,” Mr Hutton said.
Mr Hutton said administrators Hall Chadwick had sent emails to creditors advising them the meeting would be held virtually on Friday, May 10.
The court heard creditors included 57,933 customers with forward bookings, 323 employees, and 120 trade creditors.
Mr Hutton told the court “given the scale” of the meeting it might be difficult for creditors to ask questions and representatives for the different creditors groups might need to be appointed.
It was also revealed that services were unlikely to resume tomorrow despite a deadline set last week.
“There hasn’t been any further communication … so the latest information is that the aircraft are grounded until at least today,” Mr Hutton told the court.
“The company does not have access to the aircraft that it used to conduct its business due to enforcement action taken by the lessors.”
‘Cabin crew in crisis’
In response to Bonza’s collapse, the Flight Attendants’ Association of Australia (FAAA) has launched an online fundraiser entitled “Support Bonza Cabin Crew in Crisis”.
The campaign statement said cabin crew had already been living “pay cheque to pay cheque under minimum award conditions” and were devastated to discover they would not be paid for the entire month of April.
“Staff were stood down only three days before payday,” the statement read.
“This has meant that Bonza cabin crew … now face rent, mortgage repayments, power, gas, and food and other bills that they simply cannot afford.”
“Out of a job due to no fault of their own, Bonza cabin crew need your urgent help to get them and their families through this crisis.”
FAAA representative Teri O’Toole said funds raised would be donated to crew who had registered for assistance.
“Our crew members have always been there to ensure your safety and comfort in the skies; it is now our turn to stand by them in their time of need,” Ms O’Toole said.
The hearing has been adjourned until later today.