BONZA BREAKS PROMISE TO CUSTOMERS AFTER BUDGET AIRLINE CANCELLED ALL ITS FLIGHTS AND HAD ITS PLANES REPOSSESSED
- Bonza can't pay refunds to passengers
- Administrators trying to get airline back in the air
- READ MORE: Everything you need to know about Bonza
Bonza ticket-holders have been dealt a further blow, with administrators saying the financially-stricken airline was not currently able to provide refunds for cancelled flights.
The airline was placed into voluntary administration on Tuesday hours after all of their flights were grounded and their fleet of leased Boeing 737 Max 8s repossessed.
Thousands of affected customers were initially told they would receive a refund within 21 days, however that now appears highly unlikely.
Bonza's appointed administrator Hall Chadwick said in a statement on Wednesday afternoon the company is 'not in a position' to process refunds until its financial position improved.
The administrator did say there was hope for the airline to resume operations and was talking with other 'key industry participants' to get back in the air.
The statement revealed Hall Chadwick has had an 'open dialogue' with the fleet's lessor AIP Capital.
'We have also today met with the company's chief financial officer to go through the financial position of Bonza with a view to updating creditors of that position in due course,' it reads.
While meetings with those within the Australian and international aviation industry remain ongoing, passengers were told they would have to wait longer for their refunds, The Australian reported.
'Unfortunately, the administrators and/or the company are not in a position to process or issue refunds at this time,' said the statement.
'We understand how frustrating this is and we appreciate customers' patience at this time.'
Almost 2,600 Bonza passengers have reached out to a government hotline for help after being left stranded by the sudden collapse.
Qantas, Virgin and Jetstar offered free flights for stranded passengers where available, however AAP spoke to multiple customers who spent hundreds of dollars to secure alternative flights home.
The Transport Workers Union is in talks about the future of 150 Bonza staff with other players in the industry.
Bonza chief executive Tim Jordan on Tuesday 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,' he said.
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.
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.
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