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7 May, 2024

Nothing Bonza can do to prevent loss of planes, ACCC concerned by latest aviation developments

By Zach Havard

There is nothing Bonza can do hold onto its aircraft, a court has heard today, with the embattled low-cost carrier standing staff down for ‘at least another week’.

The hearing today was told the five Boeing 737 MAX 8 aircraft Bonza uses to fly are not in the possession of the airlines after AIP Capital terminated the leases less than two hours before the appointment of administrators from Hall Chadwick.

A media release to follow stated that Hall Chadwick has been in discussions with AIP Capital (the owners of the aircraft) in a bid to use the fleet in the short term.

“The Administrators have regretfully been advised that the Lessors will continue to enforce their rights under the termination notices and, subject to their own requirements and arrangements, seek to reposition the fleet elsewhere,” the statements said.

“Administrators are reviewing all available options to allow the resumption of the Company’s operations. They will continue in their efforts through various discussions with interested parties, potential investors, and other airlines.

“The Administrators expect that a additional time will be required in order facilitate and finalise, if
possible, these arrangements.”

With no planes to fly, Bonza has officially cancelled all flights up to and including 14 May and stood staff down for the next seven days at least.

It would appear there is no coming back from here for Tim Jordan’s low-cost carrier.

Refunds

Refunds continue to look unlikely at this stage.

“The Administrators confirm that they are not in a position to process or issue refunds on behalf of the
Company at this time,” today’s media statement read.

“Customers who have had their flights cancelled should contact their financial institution to discuss available options.”

Customers may also wish to liaise with any insurance providers, in the event they have travel insurance for the bookings.”

ACCC Chair ‘concerned’ about impact

ACCC chair Gina Cass-Gottlieb said she is concerned about the impact of Bonza’s closure on the Australian aviation industry.

“The ACCC is keen to see stronger competitive forces in the airline sector,” Cass-Gottlieb told Sky News Australia.

She highlighted the ACCC’s issues with the concentration of airlines in the Australian market, of which Qantas group holds the lion’s share at about 60 per cent.

The ACCC had welcomed the entry of Bonza and also had hopes for the expansion of REX. Cass-Gottlieb said she was concerned by the latest developments, as Bonza enters voluntary administration.

“We are very conscious that it is important for a development and expansion of a new entrant that there be meaningful access to the slots at Sydney Airport,” she continued.

“We have been submitting for some time that it is important to be slot management reform and we are looking forward to that reform occurring as possible as part of the review that the Government is undertaking.”

Bonza hole deepens as administrators investigate financial affairs

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