Hundreds of passengers were stranded across Australia after low-cost airline Bonza abruptly cancelled all flights, BBC reported. Passengers wanting to fly from the Sunshine Coast, Melbourne, Gold Coast and Avalon arrived at the airports on Tuesday morning to find their flights had been cancelled.
Bonza chief executive Tim Jordan confirmed the airline had temporarily suspended services amid discussions regarding the ongoing viability of the business.
''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,'' he said after flights were cancelled across the country.
Administrator Hall Chadwick said the entire fleet would be grounded up to and including Thursday this week, as key parties consider whether the company can continue operating during administration. The airline also advised travellers with flights booked up until Friday morning to not travel to the airport.
''The voluntary administrators with the engagement of Norton Rose Fulbright are currently considering the continued trading of the company's operations during the administration period including the continuation of employment of all employees of the company. The discussions regarding ongoing trading are occurring over the forthcoming days and the administrators will be in a position to update all stakeholders as the matter progresses,” a joint release issued by Hall Chadwick and Bonza said.
Bonza launched in 2023 and operated a range of domestic flights across eastern Australia. However, the company has struggled with aircraft shortages and low patronage since its launch.
Catherine King, Australia's transportation minister, told reporters that she had spoken with representatives from Bonza and urged them to keep passengers fully informed.
''We have made it very clear to Bonza that we expect that they inform passengers about what their options are, what changes are being made, and that they respect their consumer rights, of which they do have some. Our focus right at the moment is to assist Australian passengers who are stranded at the end of school holidays,'' Ms King said.
Australia's main transport union is now seeking an urgent meeting with the airline's leadership to discuss how the sudden closure will impact workers.
"Bonza must ensure staff are prioritised and informed as this process plays out," the national secretary of the transport workers union, Michael Kaine said, according to the Guardian.
Meanwhile, the Australian federal government has established a hotline for passengers whose flights were cancelled. Both Qantas Group and Virgin Australia have offered to assist anyone stranded by the cancellations.
