Australia’s Bonza suspends flights due to insolvency and appoints external administrator
Australia’s new low-cost airline Bonza on Tuesday formally appointed an external administrator after announcing the temporary suspension of its flights due to “viability” problems, causing thousands of passengers to be stranded in several parts of the country.
Accountancy group Hall Chadwick will take over the management of Bonza, whose leased aircraft remain grounded due to fleet sequestration, to assess the options open to the company and its creditors, the Australian Financial Review reported today.
“This morning we were informed that, as of 03:00 today, AIP Capital, the lessor of the aircraft, has initiated repossession proceedings on all of our aircraft,” Bonza founder Tim Jordan said in an internal email quoted by the newspaper.
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Bonza announced today that it had “temporarily suspended the services it was due to operate this Tuesday, as talks on the viability of the company are ongoing,” the airline announced on its website, apologizing to its customers and promising to seek a solution.
Following Bonza’s announcement, the Australian government set up a support line for stranded passengers and asked Qantas and Virgin airlines to help transport them to their destinations.
Previously, Australian Financial Review had reported that aircraft registered in the name of Bonza, which operates through a long-term lease system for its fleet, were seized.
49 percent of the aircraft fleet was owned by U.S.-based 777 Partners, which appointed consultancy Korda Mentha to evaluate its options, and 51 percent by the management of Irish group AIP Capital, which has transferred its aircraft to Phoenix Aviation Capital, according to the Australian newspaper.
Since Bonza began operations in early 2023, it has been heavily criticized for constant cancellations and suspension of its routes.
With information from EFE
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