Australian Budget Airline Bonza Lands In Administration

Sydney, (APP - UrduPoint / Pakistan Point News - 30th Apr, 2024) Australian budget airline Bonza cancelled all flights and entered voluntary administration on Tuesday, just 15 months after launching.

Television images showed empty Bonza counters at Melbourne Airport as the crisis stranded passengers with tickets on the domestic carrier, which boasts in its slogan: "Here for Allstralia".

Bonza Aviation said in a filing with corporate regulators that it had appointed external administrators, starting a process that will decide if the company can be rescued or should be wound up.

"Bonza has temporarily suspended services due to be operated today, as discussions are currently underway regarding the ongoing viability of the business," chief executive Tim Jordan said in a statement earlier in the day.

"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 had met to decide on its options but the government had only "limited information" about developments, said Transport Minister Catherine King.

"The government's first priority, obviously, right at this point in time, is making sure that stranded Australians can get home," she told reporters in Melbourne.

"Our thoughts are also with staff who are obviously concerned at the moment."

Bonza made a splash when it launched in January 2023, promising a down-to-earth Aussie experience with onboard craft beer, snags (sausages) and a relaxed approach to crew uniforms.

Most of all, it promised tickets as cheap as Aus$49 (US$32) -- often servicing smaller regional airports.

Bonza was backed by US investment firm 777 Partners, which has been approached for comment.

Aviation analyst Neil Hansford of Strategic Aviation Solutions said the airline had been doomed from the start.

"The model was totally wrong. They were trying to fly on routes with no proven density, a leisure-only product," he said.

"It was the wrong aircraft at the wrong prices on the wrong routes."

Virgin Australia leapt on the announcement to offer a hand to stranded passengers.

"We will immediately support any passengers stranded mid-journey by offering complimentary seats on Virgin Australia-operated flights to the airport nearest to their final planned Bonza destination," it said in a statement.