Employees at low-cost airline Bonza were “screaming and crying” when they learned they would not be paid a month’s wages after their fleet of planes was grounded.
The airline suspended all flights at 11.51pm on Monday and entered voluntary administration hours later.
In a statement, Bonza revealed that its aircraft leases had been unexpectedly terminated because it had defaulted on its loans the previous month.
Flights will remain grounded until May 7 at the earliest as Bonza administrators Hall Chadwick hold daily meetings with stakeholders and landlords.
“During this time, while the aircraft remains grounded and there is insufficient cash flow and financing, administrators will not be able to fully restart operations,” a statement said.
“Managers also have no alternative but to lay off the majority of the company’s employees, pending the outcome of the ongoing discussions mentioned above.”
Happier times for the Bonza team as Pink fans flew to Townsville from across Queensland for the singer’s shows in March.
Bonza flights will remain grounded until May 7 at the earliest, administrators Hall Chadwick said in a statement.
The ABC has revealed that around 150 staff have been made redundant without pay, with many left “screaming and crying” at the news they would not be compensated for their work in April.
“(Managers) said they can’t do anything, they’re not in a position to pay anyone,” the employee told ABC.
‘I would have thought the staff would be paid even half. They get nothing. Zero.
‘They put gas in the car and headed to work five days a week. The rent is due and they have no money.
The news was revealed during a virtual staff meeting with Bonza CEO Tim Jordan on Thursday night.
Another employee told the national broadcaster that Bonza staff were “crying” as they queued outside Centrelink on Friday.
In a statement, Hall Chadwick acknowledged that “this is a difficult time for everyone involved.”
It said it would continue to hold meetings about the low-cost airline, including establishing an “open dialogue” with lessors of the Bonza fleet.
The suspension is expected to affect 183 flights and more than 33,000 passengers over the next week.
Bonza said there was “no alternative course of action” and that customers booking Bonza flights from May 3 to 7 should not rely on their travel plans unless new arrangements have been made.
