Bonza Airline Goes into Administration, Stranding Passengers
Embattled regional airline Bonza has entered administration, grounding its fleet and leaving thousands of passengers stranded across the country. The airline cited ongoing viability concerns as the reason for the suspension of all services.
Bonza's financial position has been under scrutiny since its launch last year. The airline faced criticism for flight cancellations, including mass cancellations over Christmas, and route suspensions.
Passengers affected by the cancellations have been offered full refunds and alternative flights on other airlines. The federal Transport Department has set up a hotline for stranded passengers.
Bonza's entry into administration is a blow to regional communities that relied on the airline for affordable travel options. The airline's business model aimed to link regional centers often ignored by larger carriers.
The airline's struggles have sparked calls for government intervention to support regional aviation. Some industry experts believe the low profit margin model may be unsustainable in regional Australia, given long distances and relatively low passenger numbers.
The future of Bonza remains uncertain as administrators work to determine the airline's viability. The airline's backers, 777 Partners, have been contacted for comment.