Bonza’s aircraft to remain grounded until at least Wednesday

The airline’s customers have been told there will be no flights till at least next Wednesday, as its administrators try to regain use of grounded aircraft.

Bonza’s first Boeing 737 Max 8 arrived in Australia in August 2022.

Bonza customers have been told there won’t be any flights until next Wednesday at the earliest as negotiations continue over the airline’s grounded fleet.

Currently, five Boeing 737 Max 8s remain parked at Sunshine Coast, Gold Coast and Melbourne Airports after being repossessed by leasing company AIP Capital early Tuesday.

The move prompted Bonza to enter voluntary administration, appointing Hall Chadwick to try to navigate a way out of its financial predicament and back into the air.

Initially customers were told there was no chance of flights resuming before Friday with the repossession in force until at least midnight on Thursday.

An update from Hall Chadwick said discussions with the lessor and relevant parties regarding the resumption of operations were continuing.

“As such the administrators are unable to resume flight operations from Friday 3 May 2024 up to and including Tuesday 7 May 2024,” said Hall Chadwick.

“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.”

More than 180 Bonza flights had been scheduled over the next week, carrying as many as 33,000 people.

After trawling through Bonza’s financial details, Hall Chadwick announced on Wednesday

it would not be possible to process or issue refunds to customers at this time.

The announcement was a blow to passengers who had been told via text messages on Tuesday they would receive a full refund for their cancelled flights.

There are dwindling hopes Bonza will return to the skies after its small fleet of Boeing 737 Max 8s was repossessed by the lessor.

Jetstar, Qantas and Virgin Australia indicated they would continue to accommodate Bonza passengers whose flights had been cancelled, at no cost, providing seats were available.

Since Tuesday thousands of people have been flown home by the larger airlines, who have also set up recruitment pages on their websites for Bonza crew.

Bonza began flying in late January 2023, from its base on the Sunshine Coast, and quickly expanded to hubs in Melbourne and the Gold Coast.

Aircraft deliveries failed to keep step with the route expansion, however, resulting in mass cancellations of flights to customers’ frustration.

The extent of Bonza’s financial liabilities is not yet known, with Hall Chadwick continuing to examine the business.

When Virgin Australia went into administration in April 2020, the airline owed $7bn.

Despite the Covid-19 pandemic, there was no shortage of interest in buying Virgin, with US private equity firm Bain Capital ultimately rescuing the carrier in a $3.5bn deal.

Bonza insiders remained hopeful they too might be saved, with their air operators certificate considered a valuable asset.

Yet, employees were already lodging applications with other airlines after Tuesday’s fleet repossession.

To date, US owners 777 Partners have not commented on the situation involving Bonza.

Until recently, the Miami-based firm held a 51 per cent stake in leasing company AIP Capital.

Following the change in ownership, AIP set up a new platform called Phoenix Aviation to acquire the “rights, interests and obligations of a portfolio of 30 Boeing 737-8s from 777 Partners”.

Originally published as Bonza’s aircraft to remain grounded until at least Wednesday