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Posted: 2024-06-11 03:39:47

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“This is incredibly difficult news for Bonza employees who have received no pay for more than two months after the airline’s sudden collapse,” Kaine said.

“It’s a dark day for regional communities across Australia, which remain isolated through unaffordable or unavailable air travel.”

Hall Chadwick confirmed it was still assessing whether Bonza was trading while insolvent.

The last of the airline’s five purple Boeing 737-Max 8s left Australia last week, two months after Bonza chief executive Tim Jordan said he was blindsided by aircraft owner AIP Capital’s decision to repossess the fleet.

Disclosures to the corporate regulator from Hall Chadwick revealed the administrator held meetings with an executive at Bonza’s former private equity backer 777 Partners at least nine times between November 2023 and April.

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The Australian Financial Review also obtained an email sent in March that revealed 777 Partners, its financier A-Cap, and Bonza chief financial officer Lidia Valenzuela knew there was a plan emerging to shut Bonza’s operations.

Bonza also received four notices of default for its leases but continued to sell tickets to flights until the morning its fleet was seized.

The airline owes more than $100 million to 60,000 creditors including staff, ground handlers, airports, and passengers. It owes 777 Partners $80 million, according to Hall Chadwick.

Jetstar and Virgin have offered to prioritise hiring Bonza staff for all vacancies. Jetstar said on Tuesday it had also extended its offer of free flights to affected Bonza customers until the end of this month.

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