Bonza flights cancelled amid airline’s uncertain future

All flights operated by budget carrier Bonza have been wiped from the country’s departure boards on Tuesday and some of its fleet have been repossessed, stranding hundreds of travellers around the country.

Passengers attempting to fly from the Sunshine Coast, Melbourne, Gold Coast and Avalon arrived at the respective airports on Tuesday morning to find their flights had been cancelled.

The company’s board directors have convened an emergency meeting set for this afternoon to discuss a way forward for the struggling carrier. One source speaking on the condition of anonymity said they expected the airline to extend the temporary suspension until it can find a way to continue operating.

Bonza chief executive Tim Jordan apologised to customers in a statement and said he was considering the viability of the business, but did not confirm or deny whether any of its aircraft had been repossessed.

Some aircraft have been seized by AIP Capital, an investment house owned by the parent of 777 Partners, ACAP, to recoup money owed to investors, sources close to the matter told The Age and The Sydney Morning Herald. 777 Partners originally bought the aircraft and issued long-term leases to Bonza during COVID-19.

AIP confirmed the aircraft had been transferred to a new vehicle, Phoenix Aviation Capital, which is owned by insurance giant ACAP on April 9.

AIP has since moved to take possession of three Bonza aircraft to send them back to Canada, having already seized one of its 737-Max 8s, named Bruce, earlier this week.

777 Partners is being advised by restructuring firm KordaMentha, which declined to comment. The appointment of Korda Mentha was first reported by The Australian Financial Review last week and stridently denied by Bonza.

“Bonza has temporarily suspended services due to be operated today (Tuesday, April 30) as discussions are under way regarding the ongoing viability of the business,” Jordan said in his statement.