Bonza has appointed a voluntary administrator to run the discount regional airline after passengers were left scrambling to find seats on planes following sudden cancellations.
Travellers were left stranded in airports across Australia on Tuesday morning amid urgent talks about the future of the airline.
The company appointed external administrators Hall Chadwick.
In a brief statement late on Tuesday, Hall Chadwick said its appointment would allow “an independent insolvency practitioner to take control of the company” during which creditors’ claims will be put on hold.
Hall Chadwick said discussions regarding Bonza’s trading will take place “over the forthcoming days”.
“The administrators are conscious of the impact of the grounding of the company’s fleet and are working alongside the existing senior management of the company and the aircraft operational team in respect to ongoing trading,” it said.
“The administrators have also commenced engagement with all key stakeholders including secured creditors, government bodies, key suppliers, and contractors.”
Bonza chief executive Tim Jordan apologised to customers and said the company’s ongoing viability was being discussed.
“We’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market,” Mr Jordan said.
Flights suspended on Tuesday included those to or from Melbourne, the Sunshine Coast, the Gold Coast, Launceston, Alice Springs and others.
Federal Transport Minister Catherine King said a hotline for stranded passengers was created.
“My department has reached out to Bonza and our expectation is that they keep passengers informed of their options and their consumer rights,” Ms King said.
Virgin Australia, Qantas and Jetstar have offered to fly Bonza passengers free of charge to airports closest to their destination.
The Sunshine Coast-based company was unveiled in October 2021 and its first flight took off in January 2023.
It operates Boeing 737-Max-8 planes and is backed by 777 Partners, an investment group based in Miami, Florida.
It originally flew 27 routes to 17 destinations but started cutting services during its first six months.
Earlier in April, the Australian Financial Review newspaper reported advisory firm KordaMentha had been called in to help the company, which Bonza denied.
Bonza’s LinkedIn profile states it has between 51 to 200 employees.
The airline operates flights from select airports on Australia’s east coast but does not have flights to or from Sydney and Brisbane.
It flies to many regional destinations including Albury, Mildura, Mount Isa, Tamworth and Port Macquarie.