Tuesday, June 18, 2024

Bonza future bleak as staff sacked, no one submits bid to buy collapsed airline

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Bonza appears all but certain to be shut down for good after no one submitted a bid to buy the collapsed airline, leading its administrators to sack all staff.

More than 300 workers were told this morning by administrators Hall Chadwick that their employment had been terminated.

All of the airline’s future flights have also been officially cancelled, and a creditors’ meeting will soon be called where the future of the company will be decided.

Bonza looks all but certain to be shut down for good after all its staff were sacked. (Louis Trerise/AFR)

Anything other than Bonza being wound up looks highly unlikely, given none of the multiple parties interested in buying the airline submitted an offer by the deadline of last Friday after doing their due diligence.

The administrators assisted a number of interested parties through the sale campaign, allowing each party to conduct their due diligence and formulate any offer,” a statement from Hall Chadwick said today.

“Unfortunately, the administrators did not receive any binding offers.

“While this is not the news stakeholders wish to hear, the administrators must make a decision with respect to the stand down of the employees.

“Furthermore, customers need certainty regarding the operation of future flights.

“As a result, the administrators have no option but to terminate all employees and cancel all future flights.”

It is not known when the creditors’ meeting will take place, but the administrators said there was a chance someone could still submit a proposal.

Speaking after news of the staff sackings emerged this morning, the Transport Workers’ Union (TWU) said it was a bleak day for Australia’s aviation industry.

“This is incredibly difficult news for Bonza employees who have received no pay for more than two months after the airline’s sudden collapse,” TWU National Secretary Michael Kaine said.

“It’s a dark day for regional communities across Australia which remain isolated through unaffordable or unavailable air travel to remain connected with the nation.”

bonza first flight
Bonza had onlly been operating for little more than a year before it went into administration. (Supplied)

The airline had only begun operating in early 2023.

Kaine said the hundreds of lost jobs showed the need for extra regulation in the aviation industry.

“Workers remain in limbo, with the Fair Entitlement Guarantee scheme not yet available to claim their owed entitlements,” he said.

“Today, they gained the freedom to pursue alternative full-time work, with Virgin Australia having previously committed to prioritising Bonza staff.

“It’s highly likely aviation will lose hundreds more skilled, experienced staff after being burnt so many times in this industry.

“Aviation has been decimated over recent years… we urgently need a Safe and Secure Skies Commission to repair and rebuild a strong, sustainable aviation industry.”

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