Bonza Airlines: Gold Coast tourism leaders brace for pain after company goes into voluntary administration

Gold Coast tourism bosses are bracing for the city’s biggest industry to take a hit after budget airline Bonza went into voluntary administration. WHAT IT MEANS FOR CITY

Gold Coast tourism bosses are bracing for the city’s biggest industry to take a hit after budget airline Bonza went into voluntary administration.

The airline announced on Tuesday morning it was “temporarily suspending” its services after its aircraft were repossessed by leasing company AIP Capital.

Hours later it went into voluntary administration and appointed Hall Chadwick as administrators.

This development comes just eight months after launching its Gold Coast push with the aim of injecting $100m into the economy.

Bonza Airline went into administration on Tuesday.

Instead, the loss of up to 70 routes to locations across Australia is tipped to hit accommodation and tourism operators on the eve of the quieter winter months.

Bonza CEO Tim Jordan said the viability of the airline was in question.

“Bonza has temporarily suspended services due to be operated as discussions are currently underway regarding the ongoing viability of the business,” he said.

“We apologise 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 domestic aviation market.”

Tim Jordan, CEO of Bonza. Picture: NCA NewsWire / Martin Ollman

Experience Gold Coast CEO John Warn said the turn of events was “disappointing”.

“We acknowledge Bonza’s temporary suspension of services and share in the disappointment it causes for travellers,” he said.

“With a laser-focus on aviation opportunities, we are committed to advancing connectivity and securing new airline partnerships together with both Gold Coast and Brisbane Airports, the City of Gold Coast, and the Queensland Government.

“The $200 million Attracting Aviation Fund has already played a critical role in connecting us to priority markets including Malaysia, New Zealand, China, Japan and North America.

“As Queensland’s gateway, aviation attraction remains a key priority to not only rebuild international services but also tap into new opportunities through aviation hubs that would allow travel into the Gold Coast from other parts of Asia, India, and Europe.”

It will leave Jetstar, Qantas, Virgin and Rex as the sole remaining domestic operators to service the Gold Coast.

The airline launched its Gold Coast services in November

Queensland Airports, which operates Gold Coast Airport, issued a statement saying competition was critical.

“Queensland Airports Limited shares in the disappointment of our regional tourism partners and Bonza passengers following the airline’s announcement to temporarily suspend its services,” an airport spokeswoman said.

“As an airport operator, we strongly believe in the importance of increased airline competition in Australia to make air travel more accessible and affordable.

“We remain committed to growing our network and securing new routes and services to connect people, places and communities – particularly across regional Australia.”

For long-term industry figures, it has raised unpleasant memories of the collapse of Compass airlines in the early 1990s, Ansett in 2001 and Tiger in 2020 during the early days of the pandemic.

“They had some really good routes, particularly going to Albury, the Whitsundays and Launceston,” one industry figure said.

“This will have negative impact on tourism, particularly affecting people who would have been using those routes.

“Thankfully we still have several other good airlines but it will be a hit.”

Bonza launched in January 2023 and there was great fanfare in August that year when it announced it would focus on the Gold Coast as part of its expansion, with services linking the Glitter Strip with flights to Albury, Bundaberg, Cairns, Gladstone, Mackay, Melbourne Avalon, Melbourne Tullamarine, Mildura, Rockhampton, Townsville and the Whitsunday Coast.

The flights began in November with seats going from as low as $49.

At the time, Mr Jordan was bullish about the future.

“We’re still the new kid on the block and we’re still learning and we haven’t got everything right, but we’re delighted with how things are going,” he said at the time.

It was all smiles in November when the flights launched.

“Today is a golden day for domestic tourism as we start connecting more communities in time for Christmas,” he said at the time.

“Bonza focuses on undeserved and unserved markets and our Gold Coast base is further proof of that commitment.”

However the airlines Gold Coast routes were frequently dogged by cancellations.

Federal Transport Minister Catherine King said she was closely monitoring the situation.

“I have spoken to Qantas and Virgin CEOs this morning and both airlines stand ready to assist stranded passengers needing to get home,” she said.

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