Australian low-cost carrier Bonza entered voluntary administration on Tuesday, after cancelling all of its flights. Reports in Australia say the move came after repossession of its entire fleet that caught its CEO by surprise.
Passengers were left stranded at a handful of airports when Bonza “temporarily suspended” all services due to be operated on Tuesday with no notice, as the airline’s owners considered the viability of the business’ future.
On Tuesday, Bonza appointed firm Hall Chadwick for the administration process of its operating and holding company, documents filed with the Australian Securities and Investments Commission showed.
“Discussions are currently under way regarding the ongoing viability of the business,” Bonza’s chief executive, Tim Jordan, said in a statement. “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.”
Bonza’s board held an emergency meeting on Tuesday afternoon to discuss the airline’s next options, according to media reports in Australia. Shortly after the cancellations were reported, the transport minister, Catherine King, said her department had contacted Bonza and that “our expectation is that they keep passengers informed of their options and their consumer rights”. King said Qantas and Virgin stand ready to assist stranded passengers needing to get home.
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???? Bonza, the Australian low-cost carrier, has cancelled flights and suspended services as it evaluates its future. CEO Tim Jordan assures customers they’re working on solutions, but uncertainties remain. Stay tuned for updates! #Bonza #FlightCancellation ????????✈️????