Australia’s Latest Budget Airline Enters Voluntary Administration, Leaving Passengers Stranded
Bonza, Australia’s newest budget airline, has filed for voluntary administration, resulting in the sudden cancellation of all flights on Tuesday. Thousands of passengers across the country have been left stranded due to Bonza’s financial difficulties.
The airline, which commenced operations just last year, was the first to enter the Australian market since 2007. However, the aviation sector in Australia remains heavily concentrated, with Qantas and Virgin Australia dominating the industry.
In a statement, Bonza expressed apologies to affected customers and pledged to swiftly find a solution to ensure ongoing competition in the Australian aviation landscape.
Administrators from Hall Chadwick have been appointed to oversee the affairs of Bonza’s operating and holding company, as per documents filed with Australia’s corporate regulator.
Reports suggest that Bonza’s fleet of eight Boeing 737 Max planes was repossessed by creditors on Tuesday, although the airline has yet to confirm this development.
Passenger Mel Watkins shared her dismay, stating she was “absolutely shattered” upon learning that her flight to Launceston had been canceled. Despite initial hopes of supporting a local carrier, she expressed disappointment over the situation.
Following the flight cancellations, the federal transport department established an emergency hotline to assist affected passengers, particularly those stranded in Queensland and Victoria.
Qantas Group and Virgin Australia, which dominate 95% of the domestic aviation market, have extended offers to aid stranded travelers mid-journey.
Bonza, headquartered in Queensland’s Sunshine Coast, promised low-cost fares and new domestic destinations upon its launch in 2021. However, delays in regulatory approvals and operational challenges led to route cuts and speculation regarding its viability.
Australia’s primary transport union is seeking an urgent meeting with Bonza’s leadership to address concerns about the impact of the sudden closure on workers. The union’s national secretary, Michael Kaine, criticized the aviation industry’s “unchecked corporate greed” and warned of the challenges faced by new carriers attempting to enter the market.