Budget airline Bonza has gone into voluntary administration cancelling flights, leaving thousands of passengers stranded. The low-cost carrier only began flying last year.

Sunshine Coast

Title: Bonza Bedlam 

Australia's newest budget airline, Bonza, has entered administration, leading to the grounding of flights at its 21 destinations across the country. The unexpected shutdown has left thousands of travelers stranded and uncertain about their future plans. Among the affected, Karen Isbell from Melbourne found herself in a predicament as she had to make alternative arrangements for her flight to Rockhampton, resulting in a sudden $1200 expense through Qantas. 

Bonza, which launched in January of the previous year, faced multiple challenges including delays, route cancellations, and poor ticket sales on some routes. However, aviation analysts suggest the financial struggles of its Florida-based backer, 777, played a significant role in the airline’s downfall. The company's financial difficulties impeded Bonza’s ability to acquire new planes and pursue expansion, culminating in the repossessing of aircraft by a former investment partner of 777. 

The incident has elicited a response from the government, emphasizing the priority to assist stranded Australians in returning home safely and promptly. Major airlines, Qantas and Virgin, have stepped in, offering free flights to those impacted by Bonza's sudden halt in operations, alongside a dedicated hotline for affected customers. This development reflects ongoing challenges within the budget airline industry in Australia, reminiscent of the closure of Tiger Air in March 2020 following Virgin Australia’s entry into administration. 



Budget airline Bonza goes into administration causing chaos

Bonsa grounded. One gets the sense that this is going to be permanent. Australia's newest budget airline tonight in administration. The cancellations came early this morning. All Bonsa flights at its 21 destinations Australia-wide were grounded, leaving thousands of travellers stranded. We got alerted to this by my sister who watched the news. You just found out about Bonsa? That's correct. In Melbourne, Karen Isbell had no choice but to re-book her flight to Rockhampton. We were just on the freeway coming here so I just sort of went into panic mode and booked through Qantas and yeah, $1200 later. While on the Sunshine Coast where Bonsa is based, holidays and high school reunions were ruined. We've got work tomorrow, we've got school again tomorrow so anyway we just have to grin it and bear it. I have no idea how I'm going to get my money back or if we will ever get our money back for the return flights. The airline has had a short but chequered history. Launching in January last year, Bonsa has been plagued with delays and route cancellations. We have no idea at the moment. We've got no communication, no nothing. Poor ticket sales on some routes hasn't helped, but aviation analysts say today's surprise shutdown was largely out of the airline's hands. Business model point of view, it ticks the boxes. It's the financing behind it that has come unstuck. 777, the Florida-based backer of Bonsa, has itself hit financial strife, which has stricken the airline's ability to acquire new planes and expand. It all came to a head last night when the budget carrier's aircraft were repossessed by the former investment partner of 777. This is a very large island. Aviation is critical infrastructure and we've got an aviation industry that's broken. Bonsa isn't the only budget airline to run into troubles in recent years. The last high-profile case was Tiger Air, which was retired in March 2020 at the start of the pandemic after Virgin Australia went into administration. The government's first priority obviously right at this point in time is making sure that stranded Australians can get home and to do so safely and as quickly as they possibly can. Qantas and Virgin have both offered free flights to Bonsa customers left in the lurch, with a hotline also set up. Matthew Karstunen for 10 News First.

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