Transport Workers Union (TWU) national assistant secretary Emily McMillan described the move not to pay workers as “disgraceful”.
“The shock of Bonza going into administration is barely wearing off and workers are being forced to queue at Centrelink,” she said.
“It is appalling that Bonza has failed workers so spectacularly and that aviation workers are once again paying the price for a broken industry.
“These are hardworking people with bills to pay and families to feed. They are highly trained. This is a devastating blow and cause for great concern in the cost of living crisis.
“The Bonza administrators must strain every nerve to find the means to urgently pay these workers. There is no higher priority than this.”
Late last night Hall Chadwick, which was appointed administrators on Tuesday, said the budget airline had received notices on April 17 from the company that owns its planes, AIP Capital.
Bonza continued to sell tickets during the 12 days between receiving the notice and canceling all of its flights.
He didn’t expect his plane to be impounded despite the notice, Hall Chadwick said.
“On 29 April 2024, at 23:51 AEST, the lessors of the aircraft leased to the Company (Bonza) issued notices to the Company terminating their ground lease agreements for the aircraft,” said a statement from the administrators.
“Among various other requirements, these notices require the company to immediately cease operating the aircraft and keep the aircraft grounded and safely secured.
“Although these notices were preceded by notices of default issued on 17 April 2024, the directors of the company advised that the actions taken by the lessors were not forewarned or anticipated.”
More than 3000 Bonza passengers had to find alternative flights with other Australian airlines after Tuesday’s sudden cancellation, federal Transport Minister Catherine King said.
Discussions between Bonza and AIP are continuing, with the planes grounded until at least next Tuesday.
Hall Chadwick said Bonza doesn’t have enough cash to continue operations while its planes are stuck on the runway and that most of its roughly 150 employees have been laid off.
Meetings between administrators, stakeholders and landlords continue on a daily basis,” the administrators said.
“During this time, while the aircraft remains grounded and there is insufficient cash flow and funding, administrators cannot resume full operations.”
“The administrators also have no alternative but to suspend the majority of the company’s employees, pending the outcome of these above ongoing discussions.”
Hall Chadwick said he was unable to provide details on Bonza’s current financial situation.
“The company is unable to process or issue refunds at this time,” it said.
“Customers whose flights have been canceled should contact their financial institution to discuss the options available.
“Customers may also wish to contact insurance providers in case they have travel insurance for the bookings.”
