Bonza breaks promise to customers after budget airline cancelled all its flights and had its planes repossessed
Bonza customers have been dealt a devastating blow after administrators revealed the budget airline is currently unable to issue refunds for canceled flights.
The airline was placed into voluntary administration on Tuesday after all their flights were grounded and their fleet of Boeing 737 Max 8s seized.
Thousands of affected customers were initially told they would receive a refund within 21 days, but their hopes could be similarly dashed.
Bonza’s appointed administrator, Hall Chadwick, said in a statement Wednesday afternoon that the company is “not in a position” to process refunds.
The manager did say there was hope for the airline and was in discussions with other ‘key industry participants’ about getting back in the air.
Bonza customers have been dealt a devastating blow after administrators revealed the budget airline is currently unable to issue refunds for canceled flights
Thousands of affected customers were initially told they would receive a refund within 21 days, but their hopes could be similarly dashed
The statement revealed that Hall Chadwick has had an “open dialogue” with the lessor of the fleet that seized the planes, AIP Capital.
“We also met today with the company’s chief financial officer to review Bonza’s financial position, with a view to informing creditors of that position in due course,” it said.
While meetings with those within the Australian and international aviation industry are still ongoing, passengers were told they would have to wait longer for their refunds. The Australian reported.
“Unfortunately, the administrators and/or the company are unable to process or issue refunds at this time,” the statement said.
“We understand how frustrating this is and we appreciate customers’ patience at this time.”
Nearly 2,600 Bonza passengers have contacted a government hotline for help after being stranded by the sudden collapse.
Qantas, Virgin and Jetstar offered free flights for stranded passengers where available, but AAP spoke to several customers who had spent hundreds of dollars to secure flights home.
The Transport Workers Union says it is in discussions about the future of 150 Bonza employees with other players in the sector.
The airline’s CEO Tim Jordan (pictured) apologized to customers shortly after the company went into administration on Tuesday, after they were told they would be refunded within 21 days.
Bonza CEO Tim Jordan apologized to customers on Tuesday and said the company’s continued viability was being discussed.
“We are working as quickly as possible to determine a path forward that ensures there is continued competition in the Australian domestic aviation market,” he said.
The Sunshine Coast-based company was unveiled in October 2021, with the first flight taking off in January 2023.
It operates Boeing 737-Max-8 aircraft and is backed by 777 Partners, an investment group based in Miami, Florida.
It originally flew 27 routes to 17 destinations, but began cutting services during its first six months.
Earlier in April, Australian newspaper Financial Review reported that consultancy firm KordaMentha had been brought in to help the company, which Bonza denied.
Bonza’s LinkedIn profile says it has between 51 and 200 employees.
The airline operates flights from selected airports on the east coast of Australia, 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.