Budget Airline Enters Administration, Leaving Employees and Passengers in Limbo

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Budget Airline Enters Administration, Leaving Employees and Passengers in Limbo

Bonza Employees Left in Limbo as Airline Remains Grounded

Bonza, the budget airline that launched in January 2023, has been grounded since entering voluntary administration earlier this week. The airline's fleet will remain grounded until at least next Tuesday, leaving around 302 employees without pay.

The airline's troubles began when leasing company AIP Capital issued event of default notices on April 17th, nearly two weeks before terminating the aircraft leases. Bonza's directors were reportedly caught off guard by this action.

With insufficient cash flow to resume operations, administrators Hall Chadwick were forced to stand down the majority of staff. Employees were informed during a virtual meeting on Thursday night that they would not be paid for the month of April, leaving many in tears and scrambling for emergency government assistance.

The Transport Workers' Union and the Flight Attendants' Association of Australia are providing support and guidance to affected employees. They are urging the administrators to prioritize the workers' entitlements and find a solution that ensures their well-being.

Meanwhile, Bonza employees remain in the dark about their future employment prospects. Meetings with stakeholders are ongoing, but it is unclear whether the airline will be able to resume operations or if the employees will have jobs to return to.