Australia’s newest budget airline Bonza cancels all flights

• Bonza, Australia’s first budget airline, has voluntarily canceled all flights due to financial issues.
• The airline, which has been operating since last year, has been the first to launch in Australia since 2007.
• Bonza has appointed Hall Chadwick as a voluntary administrator for its operating and holding company.

Australia’s newest budget airline has entered voluntary administration, abruptly canceling all of its flights on Tuesday. Bonza’s financial troubles have left thousands of passengers stranded around the country. Operating since last year, the carrier had been the first to launch in Australia since 2007.

Qantas and Virgin Australia dominate aviation, which remains one of the nation’s most concentrated industries.

“We apologize 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 aviation market,” Bonza said in a statement.

According to documents filed with Australia’s corporate regulator, the company has appointed Hall Chadwick as a voluntary administrator for its operating and holding company.

Local media reported that creditors repossessed Bonza’s eight planes – a Boeing 737 Max fleet – on Tuesday. The airline has not confirmed the claim.

Passenger Mel Watkins, who was due to fly to Launceston for a family holiday, told the Australian Broadcasting Corporation (ABC) that news of her canceled flight had left her “absolutely shattered.”

“I thought it’s an Australian airline, and we’d be better off supporting a small company, but it turns out no,” she said.

On Tuesday, the federal transport department established an emergency help hotline for passengers after planes were canceled across Queensland and Victoria.

Qantas Group and Virgin Australia, which collectively control 95% of the nation’s domestic aviation market, each offered assistance to anyone stranded mid-journey.

Bonza, headquartered in Queensland’s Sunshine Coast, launched in 2021, offering low-cost fares and a range of new domestic destinations.

After facing delays with regulatory approval, it finally took to the skies in 2023. However, aircraft shortages and low patronage led it to slash several routes in quick succession.

These setbacks, combined with its inability to secure access to take-off and landing spots in the lucrative Sydney market, quickly sparked speculation over its future.

Australia’s main transport union is now seeking an urgent meeting with the airline’s leadership to discuss how the sudden closure will impact workers.

According to the Guardian, Michael Kaine, the national secretary of the transport workers union, said that Bonza must prioritize and inform staff as this process plays out.

Mr. Kaine also criticized the “unchecked corporate greed” in the aviation industry that’s led to higher fares and warned that any carrier attempting to break into the market “has little chance of survival”.

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