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Grounded for good: Bonza's fate sealed as creditors approve liquidation

Bonza’s closure has been confirmed, with creditors for the airline voting to liquidate the company. 

Bonza’s closure has been confirmed, with creditors for the airline voting to liquidate the company. 

The low-cost carrier entered voluntary administration in late April, just 15 months after it launched. 

With its liquidation confirmed, ex-Bonza staff, who lost their jobs on 11 June, will now have access to the government’s Fair Entitlements Guarantee scheme, the Transport Workers Union says.

According to the TWU, Bonza workers are collectively owed $10.8 million in entitlements, with staff unpaid since March, including for work completed in April, as administrators unsuccessfully attempted to sell off the airline. 

TWU National Secretary Michael Kaine said the news would be bittersweet for Bonza workers.

Bonza Matilda
Bonza’s ‘Matilda’ jet.

“The finality of Bonza’s collapse is a sad event for Australia’s aviation industry, but brings the certainty workers needed to access the Fair Entitlements Guarantee scheme for their owed entitlements, including wages for work completed in April,” he remarked. 

“With cost-of-living still bearing down, more than 300 families suffered sudden loss of income and months of turmoil about their futures.” 

Last month, the TWU, Australian Services Union (ASU) and the union movement called for a Safe and Secure Skies Commission to ensure regulatory oversight and stability in aviation. The TWU warned that regional Australia needs a Safe and Secure Skies Commission or risk isolation from the rest of the country.

“Rebuilding a sustainable aviation industry has never been more critical for workers, passengers and the community,” Kaine stated.

“The worst of this news is the hopelessness of reconnecting regional Australia without intervention from a regulatory body. 

“Prior to administration, Bonza provided a lower-cost option for travellers and 35 routes connecting regional locations, 30 of which were unserved by any other airline. 

Bonza at Sunshine Coast Airport
Bonza at Sunshine Coast Airport

“While aggressive market competition dominates the most lucrative routes, regional communities are left high and dry. 

“Aviation is lacking a voice for workers, passengers and the Australian community including those in the regions. 

“We need a Safe and Secure Skies Commission to set binding standards and ensure aviation meets the needs and values of the nation.”

Bonza_Team
The LCC launched in 2022 amid a lot of fanfare.

Following its collapse, the travel plans of thousands of passengers were thrown into disarray, prompting rival airlines to offer help for frustrated flyers. 

In June, Jetstar and Qantas extended their offer of free flights to affected Bonza customers after the airline’s administrator confirmed the cancellation of all future flights and the termination of all staff.

Last week, Jetstar announced the launch of new non-stop flights between the Sunshine Coast and Cairns, the first ex-Bonza route to be picked up by another airline.