Workers at budget airline Bonza ‘screamed and cried’ when they learned they would not get a month’s wages after its fleet of planes was grounded.
The airline suspended all flights at 11:51 pm on Monday and went into voluntary administration hours later.
In a statement, Bonza revealed that the leases for its aircraft had been unexpectedly terminated because the company had defaulted on its loans the month before.
Flights will remain grounded until May 7 at the earliest as Bonza administrators Hall Chadwick hold daily meetings with interested parties and lessors.
“During this time, with aircraft grounded and insufficient cash flow and financing, administrators are unable to resume full operations,” a statement said.
“The administrators also have no alternative but to dismiss the majority of the company’s employees, pending the outcome of the above-mentioned ongoing discussions.”
Happier times for the Bonza crew as Pink fans flew from all over Queensland to Townsville for the singer’s shows in March
Bonza flights will remain grounded until May 7 at the earliest, administrators Hall Chadwick said in a statement
The ABC has revealed that around 150 staff have been made redundant without pay, with many left ‘screaming and crying’ at the news they would not be paid for their work in April.
“(The administrators) said there’s nothing they can do – they’re not in a position to pay anyone,” the employee told the ABC.
‘I thought the staff would get paid, even if only half. They get nothing. Zero.
“They put gas in their car and drove to work five days a week. The rent has to be paid and they have no money.’
The news was revealed on Thursday evening during a virtual staff meeting with Bonza CEO Tim Jordan.
Another worker told the national broadcaster that Bonza staff were “in tears” as they queued outside Centrelink on Friday.
In a statement, Hall Chadwick acknowledged that it is “a difficult time for everyone involved.”
It said it continued to hold meetings on the budget airline, including establishing an “open dialogue” with the lessors of Bonza’s fleet.
The suspension is expected to affect 183 flights and more than 33,000 passengers in the coming week.
Bonza said there was ‘no alternative course of action’ and that customers booked on Bonza flights from May 3 to 7 should not rely on their travel plans unless new arrangements have been made.