Bonza customers have been dealt a devastating blow after administrators revealed the low-cost airline would currently be unable to provide refunds for canceled flights.
The airline was placed into voluntary administration on Tuesday hours after all its flights were suspended and its Boeing 737 Max 8 fleet recovered.
Thousands of affected customers were initially told they would receive a refund within 21 days, but their hopes could also be dashed.
Bonza’s designated administrator, Hall Chadwick, said in a statement Wednesday afternoon that the company is “not in a position” to process refunds.
The administrator said there was hope for the airline and he was talking to other “key industry players” about getting back to flying.
Bonza customers have been dealt a devastating blow after administrators revealed the budget airline would currently be unable to provide refunds for canceled flights.
Thousands of affected customers were initially told they would receive a refund within 21 days, but their hopes could also be dashed.
The statement revealed that Hall Chadwick has had an “open dialogue” with the fleet lessor that recovered the planes, AIP Capital.
“Today we also met with the company’s financial director to analyze Bonza’s financial situation with a view to updating creditors of that situation in due course,” it reads.
While meetings with members of the Australian and international aviation industry continue, passengers were told they would have to wait longer for their refunds. The Australian reported.
“Unfortunately, the administrators and/or the company are not in a position to process or issue refunds at this time,” the statement said.
“We understand how frustrating this is and appreciate customers’ patience at this time.”
Nearly 2,600 Bonza passengers called a government hotline for help after being stranded by the sudden collapse.
Qantas, Virgin and Jetstar offered free flights for stranded passengers where available; However, the AAP spoke to several customers who spent hundreds of dollars to secure flights home.
The Transport Workers Union says it is in talks about the future of 150 Bonza employees with other players in the sector.
The airline’s chief executive Tim Jordan (pictured) apologized to customers shortly after the company collapsed on Tuesday after being told they would receive a refund within 21 days.
Bonza CEO Tim Jordan apologized to customers on Tuesday and said the company’s current viability was being discussed.
“We are working as quickly as possible to determine a way forward that ensures there is continued competition in the Australian domestic aviation market,” he said.
The Sunshine Coast-based company was launched in October 2021 and its first flight took off in January 2023.
It operates Boeing 737-Max-8 aircraft and is backed by 777 Partners, an investment group based in Miami, Florida.
It originally flew 27 routes to 17 destinations, but began cutting services during its first six months.
In early April, the Australian Financial Review newspaper reported that advisory firm KordaMentha had been called in to help the company, which Bonza denied.
Bonza’s LinkedIn profile says it has between 51 and 200 employees.
The airline operates flights from selected airports on Australia’s east coast, but does not have flights to or from Sydney and Brisbane.
Fly to many regional destinations including Albury, Mildura, Mount Isa, Tamworth and Port Macquarie.