BONZA CANCELLING FLIGHTS ACROSS AUSTRALIA AS PLANES ARE REPOSSESSED
- All Bonza flights 'temporarily suspended'
- CEO said airline's viability being discussed
- Virgin Australia offers seats to stranded passengers
- READ MORE: Two injured after Bonza plane cockpit fills with 'abnormal odour'
Australia's new budget airline Bonza has suddenly cancelled all of its flights with doubts raised about its future as its planes are repossessed.
The sudden cancellation of flights has left thousands of passengers stranded at airports across the country on Tuesday.
Chief executive Tim Jordan said all flights have been 'temporarily suspended' and the airline may not be able to continue just 15 months after it launched.
'Discussions are currently underway regarding the ongoing viability of the business,' he said.
'We apologise to our customers who are impacted by this and we're working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market.'
Aviation sources revealed that Bonza's fleet of Boeing 737 Max 8 aircraft had been repossessed, The Guardian reported.
Staff were reportedly called into a meeting early this morning.
A Sunshine Coast man, whose wife works for the airline, told the ABC: 'She went to work this morning, as per usual, they just went in — there were two crews there — they were just basically told that Bonza has finished.'
'They've been told that they're not flying until further notice.'
Virgin Australia has offered to assist passengers on cancelled Bonza flights with a complimentary seat on one of their a planes.
'We are aware of the temporary suspension of Bonza flights,' the airline wrote on X.
'We will immediately support any passengers stranded mid-journey by offering complimentary seats on Virgin Australia-operated flights to the airport nearest to their final planned Bonza destination.'
Stranded Aussies are urged to visit the Virgin Australia customer service representative at the airport or call the airline's Guest Contact Centre on 13 67 89.
Bonza management was reportedly 'surprised' after receiving an aircraft repossession notice in an internal Bonza memo, seen by the Courier Mail.
'We have been informed this morning that effective 0300 today that all our aircraft have had repossession proceedings commenced by AlP the aircraft lessor,' it read.
AIP has a 51 per cent hold on the budget airline's fleet while Miami-based firm 777 Partners has a 49 per cent stake.
'This was a surprise to both ourselves and 777 Partners.
'We are currently assessing all options. As a consequence of this all first wave flights from all bases have been cancelled.'
The airline is backed by US venture capital firm 777 Partners, which is understood to have called restructuring specialists KordaMentha for financial advice about its ongoing operations in Australia.
The Sunshine-based company launched in January 2023 and originally flew 27 routes to 17 destinations.
Bonza pitched itself as a 'low-cost, ultra-Aussie airline' when it launched in Australia on January 31 last year.
The airline began flights out of its hub on the Sunshine Coast after receiving the green light from the Air Operator Certificate from the Civil Aviation Safety Authority.
The airline serviced regional airports - largely where major airlines do not fly - across NSW, Queensland and Victoria.
Shadow Minister for Transport Bridget McKenzie has reportedly called on Prime Minister Anthony Albanese to save the budget airline.
This is a breaking story. More to come.
READ MORE: Everything you need to know about Bonza