Eleventh hour Bonza shutdown leaves staff without work as late-night notice to ground fleet revealed

Employees were left in tears after they were stood down without pay when budget airline Bonza went into voluntary administration this week.

Employees of budget airline Bonza were “screaming and crying” when they learnt they would not be paid a month’s wages after its fleet of aircraft were grounded.

The airline suspended all flights at 11.51pm on Monday and went into voluntary administration hours later.

In a statement, Bonza revealed the leases to its planes had been unexpectedly terminated because it had defaulted on its loans the previous month.

Flights will remain grounded until May 7 at the earliest as Bonza administrators Hall Chadwick conduct daily meeting with interested parties and lessors.

“During this time, whilst the aircraft remain grounded, and there is insufficient cashflow and funding, the administrators are unable to recommence full operations,” a statement read.

“The administrators also have no alternative but to stand down the majority of the employees of the company, pending the outcome of these above ongoing discussions.”

There had been an uptick in Bonza customers as people flew into Townsville from all across Queensland ahead of Pink's back-to-back shows.

The ABC reported about 150 staff had been stood down without pay, with many left “screaming and crying” at the news they wouldn’t be compensated for their work in April.

“(The administrators) said they can’t do anything – they are not in a position to pay anyone,” the staffer said.

“I would have thought staff would get paid, even half. They get nothing. Zero.

“They’ve put petrol in their car and driven to work five days a week. Rent is due and they’ve got no money.”

The news was revealed during a virtual staff meeting with Bonza chief executive Tim Jordan on Thursday night.

Another employee said Bonza staff were “in tears” as they queued outside Centrelink on Friday.

In a statement, Hall Chadwick acknowledged that it “is a difficult time for all involved”.

In a further statement late on Friday, the administrators said they were still working to provide funding to resume flight operations and would continue to do so over the weekend.

They confirmed they stood down 302 of the 323 total workforce up to and including May 7 and held a virtual meeting to advise the employees of their stand down.

“The administrators have opened an employee enquiry line and are assisting employees with any queries they have,” they said.

“We have also been in discussions with government organisations and other key bodies in regards to assistance for employees. These discussions are ongoing.

“The administrators are continuing their efforts to find the best possible solution for all stakeholders.”

Bonza flights will remain grounded until May 7 at the earliest. Pictures: Darwin International Airport

Meanwhile, the Transport Workers Union has condemned Bonza for its failure to pay wages in the shutdown’s aftermath.

The TWU reported staff were told they would not be paid for work done in April.

TWU national assistant secretary Emily McMillan said Bonza’s executives must “strain every sinew” to bring their workers compensation.

“The shock of Bonza falling into administration has barely subsided and workers are being forced to enter Centrelink queues,” she said. “It’s appalling that Bonza has failed workers so spectacularly and that aviation workers are once again paying the price for a broken industry.

“These are hardworking people with bills to pay and families to feed. They are highly trained. This is a devastating blow and a cause for great worry in a cost-of-living crisis.

“Aviation has spiralled out of control. While Qantas rakes in $3.72bn profits in 18 months, and the four biggest airports made $1.7bn last year, the workers getting planes safely off the ground are ripped off wages for work they’ve done.

“We need a Safe and Secure Skies Commission to set standards in aviation, end the corporate greed that has torn apart this industry and get good, secure jobs back into our airports.”

The suspension is expected to affect 183 flights and more than 33,000 passengers over the next week.

Bonza said there was “no alternative course of action” and customers booked for Bonza flights from May 3 to 7 should not rely on their travel plans unless new arrangements have been made.

Originally published as Eleventh hour Bonza shutdown leaves staff without work as late-night notice to ground fleet revealed