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Low-cost airline Bonza has gone into voluntary administration

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Bonza airline cancelled its scheduled flights yesterday as the company underwent discussions that resulted in its voluntary administration.
Low-cost airline Bonza has gone into voluntary administration.

Low-cost Australian airline Bonza has entered voluntary administration. It comes after the Australian carrier announced the cancellation of all flights on Tuesday morning.

A notice filed to the Australian Securities & Investments Commission (ASIC) on Tuesday shows Bonza has appointed an external accounting firm to wind up its business operations.

The budget airline launched in January 2023.

Bonza

Last year, Bonza became the country’s first low-cost independent airline to launch in more than 15 years.

Australia’s domestic aviation industry is dominated by two main companies: Qantas (which also owns Jetstar) and Virgin.

Bonza’s voluntary administration would be another hit to Australia’s airlines sector.

The Australian Competition and Consumer Commission had suggested Bonza’s entry into the aviation market would help bring down the cost of flights.

Cancellations

On Tuesday morning, Bonza announced it had “temporarily suspended” all planned flights. It apologised to customers impacted by the cancellations.

“We’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market,” it said.

Hours later, it appointed an independent accounting firm to wrap up its operations.

Response

Minister for Transport Catherine King confirmed she spoke with Qantas and Virgin, and said that “both airlines stand ready to assist stranded passengers needing to get home”.

King said she expected Bonza airline to “keep passengers informed of their options and their consumer rights.”

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