Bonza administrators well acquainted with budget airline before formal appointment

Bonza’s administrators were asked by the airline’s owner to provide a financial review of the company and advise on a potential acquisition proposal five months ago.

Bonza’s administrators Hall Chadwick were asked by the airline’s owner to provide a financial review of the company and advise on a potential acquisition proposal five months ago.

Documents filed with the Australian Securities and Investments Commission revealed Bonza first came onto the radar of the accounting and business advisory firm in November 2023.

Insolvency and corporate recovery specialist Cameron Shaw, who is helping to oversee the Bonza administration, had a phone call with Manish Raniga, 777 Partners’ airline investments CEO, on November 10, 2023.

Two weeks later Mr Raniga met with Richard Albarran and Jovan Singh from Hall Chadwick, and nine more phone calls and multiple emails ensued in the months that followed, right up until April 2024.

The documents said the purpose of the calls and emails were to “discuss a potential engagement of Hall Chadwick as advisers to review the financial position of Bonza, and to assist with an investment and/or acquisition proposal for Bonza”.

Hall Chadwick received no remuneration for the meetings, conversations or email exchanges, but then on April 30, Mr Raniga contacted Mr Singh about appointing the firm as administrators to Bonza.

Mr Raniga resigned from 777 Partners on November 30 but remained on the board of the firm’s Australian holding company 777 Oz HoldCo, which is also in administration.

Hall Chadwick told ASIC its pre-appointment advice to Bonza should not preclude the firm from acting as administrators and did not affect its independence.

The admission came as Hall Chadwick continued to seek a financial lifeline for Bonza, which remained grounded until at least Wednesday after its small fleet was repossessed.

Bonza’s aircraft remain grounded, as the airline’s administrators struggle to regain use of the leased Boeing 737 Max 8s. Picture: Mark Stewart

The financial position of the airline was so dire, employees were informed last week they would not be paid for the month of April and more than 300 staff were stood down.

Customer refunds for cancelled flights were also “not possible at this time” Hall Chadwick has said.

The firm responsible for repossessing Bonza’s fleet, AIP Capital, is yet to make any public statement amid speculation the Boeing 737 Max 8s could soon be taken out of the country.

Australian Competition and Consumer Commission chair Gina Cass Gottlieb said the watchdog was monitoring the situation closely.

“We are concerned there are a range of barriers to entry (for new airlines) that relate to the length of time for regulatory approval, and in the current environment the difficulty to get trained pilots,” Ms Cass-Gottlieb said.

“We also saw that Bonza had been very vocal about the slots at Sydney Airport and their ability to access the more mainstream and higher volume routes.”

In an effort to assist Bonza crew, the Flight Attendants Association of Australia launched a “GoFundMe” campaign on Monday titled “Support Bonza Cabin Crew in Crisis”.

FAAA federal secretary Teri O’Toole said they were appealing for urgent support for those left in the lurch at a challenging time.

“Following Bonza’s entry into administration last week, airline staff were stood down three days before pay day, only to be told they could not be paid for the previous month,” Ms O’Toole said.

“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.”

Originally published as Bonza administrators well acquainted with budget airline before formal appointment