Air Freight News

Bonza extends flight suspension as lessors seek to seize planes

Australian budget airline Bonza has canceled all flights through May 14 as lessors seek to seize its planes. 

The embattled carrier grounded its fleet on April 29 after the lessors issued termination notices. Hall Chadwick, which has been appointed as administrators to the airline, said Tuesday it has been in discussions with the lessors to see whether the grounded planes could become operational in the short term, but to no avail. 

“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,” Hall Chadwick said in a statement. In Australia, administrators are appointed to restructure financially stressed companies before the last resort of declaring bankruptcy. 

Hall Chadwick said it will continue efforts to resume Bonza’s operations through talks with interested parties, potential investors, and other airlines. 

After launching last year, Bonza had focused on dozens of new or little-used holiday routes aimed at the local market. But doubts grew about the airline’s ability to fill large jets serving small populations, as well as the accessibility of its app-only booking process.

The fate of Bonza also raises questions about its parent 777 Partners, which has laid out ambitious plans to build a global airline portfolio and last year agreed to buy UK football club Everton. Lenders to the firm last week accused it of fraud, claiming it borrowed against $350 million of assets that it didn’t own, didn’t exist or were already promised to someone else, according to a complaint filed in New York federal court. 

Bloomberg
Bloomberg

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© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

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