About 20 entities, comprising investors, airlines, and travel organizations, are currently engaged in negotiations to rescue Bonza Airlines, as disclosed by administrators during the initial creditors' gathering for the financially troubled airline. Representatives from Hall Chadwick expressed optimism that a deal might materialize in the near future, raising hopes amidst the uncertainty surrounding the airline's future. The airline's financial woes have been unveiled, with debts amounting to over $116 million, including substantial amounts owed to various parties such as loans, trade creditors, airports, plane lessors, employees, and customers who had their flights canceled.
Affected customers have been informed that no immediate refunds are being processed, advising them to approach their banks or insurance providers to reclaim their lost money instead. While flights scheduled after May 14 have not been formally canceled, customers have been cautioned that the airline is unlikely to resume operations next week as initially anticipated due to the unavailability of its existing fleet. The distressing situation escalated when one of the airline's leased planes, "Bruce," was repossessed, leading to further uncertainties regarding the company's ability to continue providing services.
During the creditors' meeting, it was disclosed that potential options for Bonza Airline include sourcing alternative aircraft and recommencing operations, but such a process could take up to four months to materialize. The airline's chief executive, Tim Jordan, conveyed an apologetic tone, expressing hope for a positive outcome in resolving the airline's crisis. Employee concerns were also addressed, with over 300 staff members facing financial strains due to weeks without pay, emphasizing that employee entitlements would be prioritized in the event of liquidation. Looking ahead, a second creditors' meeting is scheduled where decisions about the future trajectory of the company will be put to a vote, underscoring the critical juncture at which Bonza Airline currently finds itself.