Bonza Suspends Operations as AIP Capital Repossesses Fleet Amid Financial Struggles
Bonza, an Australian airline based on the Sunshine Coast, has abruptly halted all operations after its fleet was repossessed by aircraft asset manager AIP Capital. The airline’s CEO, Tim Jordan, announced the suspension of flights scheduled for April 30, citing ongoing discussions about the viability of the business. This development follows a period of speculation and denial of financial difficulties by the airline.
Despite previous assurances that Bonza was not experiencing financial strain, recent developments suggest otherwise. The airline’s financiers had engaged KordaMentha to assess whether to continue supporting the carrier. Bonza, which launched in early 2023 with backing from 777 Partners, attempted to carve a niche by operating B737-8 aircraft on less-traveled routes in Australia. These routes often targeted airports in regions with small local populations, which posed economic challenges, especially as introductory incentives such as landing fee holidays expired.
CEO Tim Jordan had indicated that the airline needed a fleet of ten aircraft to break even but managed to secure only half that number. Complications arose as 777 Partners redirected some of the intended aircraft to another airline, Flair Airlines, due to its fleet issues. A recent attempt to secure two Flair aircraft on dry leases fell through, further straining Bonza’s operational capacity.
On the night of April 29, AIP Capital seized four Bonza aircraft at their bases at Sunshine Coast Airport, Gold Coast Coolangatta, and Melbourne Tullamarine. The decision, which reportedly caught Bonza’s management off guard, was communicated to air traffic control, effectively grounding the aircraft.
In response to the grounding and seizure of its aircraft, Bonza has taken steps to file for voluntary administration and is expected to announce an extended suspension of flights. Hall Chadwick has been appointed as the administrator. Amidst these developments, CEO Tim Jordan expressed his intent to resolve the situation rapidly to maintain competition within Australia’s domestic aviation sector.
Major Australian carriers Qantas, Jetstar Airways, and Virgin Australia have offered assistance to stranded Bonza passengers by providing complimentary flights, although the overlap in routes operated by Bonza and these larger carriers is minimal.
This incident marks a significant setback for the fledgling airline, which had aimed to disrupt the Australian aviation market by connecting less prominent destinations with major cities. The future of Bonza now hangs in the balance as stakeholders assess the next steps.