Bonza staff in limbo amid buyer hunt

The bust airline was back in court on Monday as administrators desperately try to find a buyer.

Bonza employees have been thrown into further limbo after a two-month extension was granted in the airline’s desperate bid to find a buyer.

The matter was heard in the Federal Court on Monday where Justice Ian Jackman granted the company’s administrator Hall Chadwick an extension until July 29, saying it was “appropriate” given the circumstances.

“The administrators will need time to consider the offers received and elect which if any, they intend to proceed with,” Justice Jackman said.

Bonza suffered hits to its reputation almost immediately after launching. Picture: Supplied

The judge told the court while the added months of uncertainty faced by the company’s employees was “regrettable” the time extension would potentially benefit staff in the long run.

“The administrator’s view is that a sale of the business and execution of a deed of company arrangement is likely to result in a better outcome for creditors than immediate liquidation.”

Bonza’s lawyer James Hutton told the court that staff were being stood down without pay until at least Wednesday and that their future would be determined on whether an appropriate buyer could be found.

More than 300 staff were stood down when the airline was placed into administration in April.

“They have the possibility of gaining a greater recovery; the possibility of continuing in employment with Bonza,” he said.

“Which is not a possibility if the company goes into liquidation.”

Staff were told on a video call with CEO Tim Jordan they would likely not be paid for the month of April. Picture: Supplied

The court also heard creditors have made a total $116m in claims to Bonza, which excludes what the airline owes to customers. Without planes, the court heard how the airline’s license is its most valuable asset.

Bonza fell into administration less than 18 months after its first flight in January 2023, operating as a budget domestic airline.