Budget airline Bonza has stood down the majority of its staff, revealing its aircraft fleet was grounded amid negotiations with aviation lenders.
In a statement, Bonza claimed that its fleet was grounded on Monday at 11.51pm after the leases to its planes were terminated unexpectedly. The sudden grounding came after Bonza faulted on loans on April 17, but Bonza alleges it was not forewarned of the termination.
Bonza flights will remain grounded until May 7 at the earliest, with the majority of staff stood down in the meantime.
“Meetings between (Bonza) administrators, the interested parties and the lessors are continuing daily,” the statement reads.
“During this time, whilst the aircraft remain grounded, and there is insufficient cashflow and funding, the administrators are unable to recommence full operations.
“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.”
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.