Bonza’s administrators confirmed the company will be grounded until at least next Wednesday morning and have asked thousands of customers with bookings scheduled before then not to turn up to their respective airports.
Hall Chadwick, the accounting firm Bonza appointed after it entered voluntary administration on Tuesday, said the company remained in discussions with the lessor which has attempted to seize its entire fleet and does not expect a resolution until next week.
One of Bonza’s 737 Max 8s blocked off at the end of Melbourne Airport.Credit: Joel Carrett
“Whilst the administrators are continually in discussions with the lessor of the company’s fleet and relevant parties regarding resumption of operations, those discussions are occurring daily and will continue to take place over the forthcoming days and into next week,” Hall Chadwick said on Thursday.
There are 183 flights with 33,000 passengers who were scheduled to fly with Bonza over the next week. It’s not clear whether passengers expecting to fly with Bonza after next Wednesday will be able to do so.
Hall Chadwick had been looking for financiers for new aircraft after Bonza’s existing fleet was seized and cordoned off at three different airports across the country on Tuesday.
The firm confirmed Bonza was not currently in a position to offer refunds to its customers and was yet to confirm whether any of its many creditors, including airports, ground handlers and refuellers, could expect to be paid the millions they were owed.
“Customers scheduled to travel during this time are requested to make alternative arrangements with other airline carriers,” Hall Chadwick said.
“The administrators and the company appreciate the impact this is having on customers and employees.”
Virgin and Qantas have offered to repatriate those stranded away from their home airports when all Bonza’s flights were suddenly cancelled this week. Virgin confirmed about 1000 passengers took up the airline’s offer while more than 2000 have received complimentary flights with Qantas or Jetstar. The two competitors have also offered to employ the budget carrier’s staff, of which there are about 350 people.
Bonza is owned by Miami-based private equity business 777 Partners, which launched the airline during the COVID-19 pandemic with long-term leases for six Boeing 737-Max 8 aircraft.
Two of the original planes in its fleet were redirected to other 777 airlines at the end of last year. On Tuesday, Bonza’s remaining four aircraft were seized by AIP Capital, an investment house owned by the parent company of 777 Partners, ACAP, to recoup money owed to investors.
AIP confirmed the aircraft had been transferred to a new vehicle, Phoenix Aviation Capital, which is owned by insurance giant ACAP, on April 9.
Bonza chief executive Tim Jordan told staff on Tuesday he and 777 Partners had no knowledge of the plan to seize the planes and were considering the viability of its operations.
The airline’s board held an emergency meeting on Tuesday afternoon to consider their options but entered into voluntary administration soon after.
Some sources, close to the administrators, said the group was hoping to secure new backers, while others have written off any hope of getting the airline back off the ground.
The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.