Shock collapse results in 300 job losses as Australians are informed they will not be paid

Bonza Airlines Faces Permanent Job Losses as Sale Hopes Fade

Low-cost airline Bonza has entered voluntary administration, leaving hundreds of staff facing permanent termination as hopes of finding a buyer for the embattled airline fade. Administrators Hall Chadwick informed creditors that a sale is now considered unlikely, with interested parties given until the end of the day to lodge offers.

Since entering administration in April, more than 300 workers have been stood down and told they would not be paid for work done in April. Only a handful of staff were kept on or paid for their work. The airline owes over $100 million to backers, customers, and staff, including $5 million to 323 employees.

The private equity firm that backed Bonza, 777 Partners, reportedly has “other pressing issues” internationally and is unable to discuss payment of staff wages. Administrators suggest that staff may have to rely on the government’s entitlement recovery program to recover owed wages and salaries.

Customers of Bonza also face uncertainty, as the company is not in a position to process or issue refunds. The last aircraft of the airline, a 737 Max 8 named “Sheila,” has left the country after being repossessed by the lessor.

With job losses looming and refunds in limbo, the future of Bonza Airlines remains uncertain. Staff and customers alike are left in a state of uncertainty as the airline navigates through financial turmoil.