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Bonza's aircraft fleet is grounded until at least Friday as administrators discuss the future of the embattled airline and about 150 employees.
The announcement comes one day after the regional carrier, based out of Queensland's Sunshine Coast, went into voluntary administration and appointed an external administrator.
The snap move on Tuesday morning threw the travel plans of thousands of passengers into disarray as many turned up to airports only to be told Bonza flights had been cancelled.
Bonza employees, mostly at the Sunshine Coast and Melbourne, are today left desperate to find out if they have jobs and customer flight plans are in limbo as the airline scrambles to reach a solution.
And the federal government has cast doubt on any suggestion it will help bail out the ailing airline.
Aircraft grounded
Bonza planes at the Sunshine Coast Airport were blocked in by physical barriers, including a large tractor and concrete slab, in front of their wheels this morning.
The airport said the barriers were there to "secure the aircraft" as the administration process unfolds.
Chartered accountants and business advisors, Hall Chadwick, who have been appointed as the voluntary administrators, said on Tuesday night the fleet was grounded up to and including Thursday, May 2.
Customers with bookings for today and tomorrow have been advised not to travel to the airport for flights.
"The voluntary administrators with the engagement of Norton Rose Fulbright are currently considering the continued trading of the company's operations during the course of the administration period including the continuation of employment of all employees of the company," the administrators said.
"The company's fleet is currently grounded pending discussions with relevant parties and key stakeholders."
The administrators said discussions about ongoing trading would take place over the "forthcoming days" and they would update stakeholders as the matter progressed.
"The administrators are conscious of the impact of the grounding of the company's fleet and are working alongside the existing senior management of the company and the aircraft operational team in respect to ongoing trading," they said.
Hall Chadwick said engagement with all key stakeholders, including secured creditors, government bodies, key suppliers and contracts were taking place and they had vowed to provide regular updates across multiple platforms so that everyone had up to date information.
Bonza CEO Tim Jordan released a statement on Tuesday saying all services would be "temporarily suspended" and that discussions were underway about the airline's ongoing viability.
No bailout
Customers are today still not clear on whether the airline will fly again or whether they will get their money back.
While the airline has confirmed all flights have been suspended until at least Friday, there has so far been no advice for passengers due to fly in coming weeks or months.
Customers are being advised to contact their bank or Bonza about a possible refund if their flights were among those cancelled this week.
Federal Minister for Transport, Catherine King, said despite knowing since last week of issues with Bonza's finances and communicating with them, the government only became aware of the situation on Tuesday morning when flights were cancelled.
Ms King said Qantas, Jetstar, and Virgin immediately stepped forward to say they would bring stranded passengers home.
She said the focus was on the passengers, of which there were many, due to being at the tail-end of school holidays.
Ms King said a government bailout was "not something that the government has before us", describing Australia's aviation sector as a challenging market.
She said the matter was with the administrators to decide if the company could continue.
Travel writer Geoffrey Thomas told ABC News Channel while the reasons for Bonza's struggles were not clear, the problem appeared to be with Bonza's US-based backers, 777 Partners.
"We know that the ownership of the four aircraft that Bonza has in Australia was changed and the new owner of those leases took possession of the aircraft this morning," Mr Thomas said.
He said once the administrators conducted their investigation it would become clear what had gone wrong, but the "finances seem to be awry".
Sunshine Coast Airport has 33 Bonza departing flights and 33 incoming flights scheduled for the next seven days.
Flights scheduled for today include departures to Townsville, Cairns, Albury, Melbourne, and Darwin; and arrivals from Cairns, Townsville, Albury and Melbourne.
Some customers were reporting late on Tuesday that they were still able to check in for Wednesday's Sunshine Coast to Townsville flight.
The airport's website listed the flights as "on time" or "scheduled".
Gold Coast Airport's website was advising people to contact Bonza directly for information on upcoming flights.
Shattered passenger
Mel Watkins said she arrived at Gold Coast Airport at 5am on Tuesday to fly to Launceston for a family holiday.
She said after being told to wait at the departure gate, passengers were told the flight was cancelled.
"We were told there's no rescheduling, there's no re-booking, we'll be refunded and they're sorry," she said.
It was the second Bonza flight cancellation in as many weeks for Ms Watkins and her family.
After their flight to Victoria was cancelled earlier this month, the family forked out more than $1,100 for replacement tickets on another airline.
Ms Watkins said her family was more than $3,500 out of pocket in the past fortnight because of Bonza's cancellations.
"I'm hoping our travel insurance covers it but if it doesn't I'm going to have some massive debts to pay," she said.
"I'm absolutely shattered, I really thought it's an Australian airline and we'd be better off supporting a small company, but it turns out no."
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