More Bonza flights suspended, no refunds for out of pocket customers

A potential buyer was considering swooping in on budget airline Bonza before the operator’s planes were seized this week, it has been revealed. It comes as the suspension of the operator’s flights will continue until at least next week.

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A potential buyer was considering swooping in on budget airline Bonza before the operator’s planes were seized this week.

The Courier-Mail understands some Bonza staff were aware of the presence of a cashed-up buyer who was investigating the opportunities surrounding the airline’s potential sale.

Forensic accounting firm Hall Chadwick was appointed as administrators to the stricken airline on Tuesday and immediately announced that flights would be stopped until midnight Thursday night, although it was on Thursday confirmed the suspension of flights would continue until at least next week.

Industry website Australian Aviation on Thursday quoted an interview with the CEO of Bonza maintenance contractor AVCRO, Bradley Davren, who told the publication that in his understanding, a “very serious commitment” had been made by a mystery backer before the aircraft were taken.

“The lead backer, to my understanding, is very well known and would absolutely do wonders for multiple reasons,” he said.

“Yet to be seen if that eventuates, but had that outcome come to fruition, I suspect you would have seen Bonza kick into overdrive.”

Rumours have been swirling in aviation circles in recent days that an Australia-based investor was in discussions with the airline about a sale.

The Courier-Mail this week asked both Bonza and newly-appointed administrators Hall Chadwick about any potential sale, but neither outfit offered any comment.

Bonza chief executive Tim Jordan.

Announcing the extension of the carrier’s flights being suspended, Hall Chadwick on Thursday said flights would remain grounded until at least next Wednesday.

“The administrators are unable to resume flight operations from Friday 3 May 2024 up to and including Tuesday 7 May 2024,” the spokesperson said.

“Customers with bookings during this period are advised not to travel to the airport.

“Customers scheduled to travel during this time are requested to make alternative arrangements with other airline carriers.

“The Administrators and the Company appreciate the impact this is having on customers and employees.”

There have been doubts whether the airline will ever take to the skies again.

It comes after administrators of the stricken Bonza airline said they were unable to provide refunds for the thousands of customers caught out by the budget carrier’s collapse “at this time”.

On Wednesday night the firm issued an update, saying they had been in lengthy talks with key stakeholders and the owners of the Bonza fleet, who have moved to repossess the airline’s four Boeing 737 MAX aircraft.

“These meetings are ongoing and will continue tonight and tomorrow,” said a Hall Chadwick spokesman in a statement.

“We have also today met with the Company’s CFO to go through the financial position of the Company with a view to updating creditors of that position in due course.”

Both Hall Chadwick and the Federal government have set up hotlines for affected customers, but the spokesman said refunds would not be issued for the thousands of out-of-pocket customers “at this time”.

“Unfortunately, the Administrators and/or the Company are not in a position to process or issue refunds at this time,” the statement said.

“We understand how frustrating this is and we appreciate customers’ patience at this time.”

Affected customers can call a hotline on 03 8678 1600.

Multiple flights have been cancelled as part of what Bonza says is a “temporary suspension of services”. Picture: Shae Beplate.

The Administrators have personnel available to discuss the Administration, continued operations and assist with queries and this is operational from 7am to 10pm.

A spokesman for Hall Chadwick said in a statement on Tuesday said, “the current grounding of the fleet is currently up to and including Thursday, May 2, 2024, and customers with bookings during this period are advised not to travel to the airport.”

“The discussions regarding ongoing trading are occurring over the forthcoming days and the administrators will be in a position to update all stakeholders as the matter progresses,” the statement said.

“The administrators are conscious of the impact of the grounding of the company’s fleet and are working alongside the existing senior management of the company and the aircraft operational team in respect to ongoing trading.

“The administrators have also commenced engagement with all key stakeholders including secured creditors, government bodies, key suppliers, and contractors.

“The administrators will endeavour to provide regular updates to all stakeholders across multiple platforms so that all affected parties have access to up to date information.”

In a statement, also on Tuesday, Bonza CEO Tim Jordan said talks were being held to keep the airline viable.

The airline said it is a “temporary suspension of services”, in response to anger from passengers who arrived at airports around the country to discover their flights were no longer taking off.

The statement did not address claims at least one Bonza aircraft had been seized by a leasing company, but an internal Bonza memo detailed its management’s “surprise” at receiving an aircraft repossession notice.

Federal Transport Minister Catherine King confirmed she had spoken to the chief executive of Qantas and Virgin and both airlines stood “ready to assist stranded passengers needing to get home” amid the grounding of budget carrier Bonza.

“My Department has reached out to Bonza and our expectation is that they keep passengers informed of their options and their consumer rights,” she said.

“My Department is in the process of establishing a hotline for stranded passengers and we will get that number out to media as quickly as we can.”

It was later confirmed that hotline for Bonza passengers needing help was 1800 069 244.

Hall Chadwick has also established a hotline for customers affected by cancelled Bonza flights (03 8678 1600).

“The Administrators have personnel available to discuss the Administration, continued operations and assist with queries,” a statement issued by Hall Chadwick this afternoon said.

In the statement released on Tuesday morning, Mr Jordan apologised to customers and said the airline was working as quickly as possible to determine a way forward.

“Bonza has temporarily suspended services due to be operated today (Tuesday April 30) as discussions are underway regarding the ongoing viability of the business,” he said.

“We apologise to 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 domestic aviation market.”

In a statement, a Virgin Australia spokesman said the airline was stepping up to fill the void.

“We will immediately support any passengers stranded mid-journey by offering complimentary seats on Virgin Australia operated flights to the airport nearest their final planned Bonza destination,” the spokesman said.

“ For those at an airport please see your nearest VA representative or call the Guest Customer Centre on 13 67 89.”

Bonza is currently under a financial cloud after its parent company called in advisers to check its finances, despite having only been operating in Australian skies for just 15 months.

Last week, a Gold Coast traveller was left $700 out of pocket after the airline changed its arrival airport to one more than 150km from his planned destination just days before the scheduled departure.