Administrators placed in charge of embattled Australian airline Bonza have sacked 323 staff during an online meeting.
Accounting firm Hall Chadwick had hoped interested parties would submit offers for the airline, which fell into financial trouble this year.
In a statement, Hall Chadwick said the deadline for offers had passed at close of business on June 7.
“The administrators assisted a number of interested parties through the sale campaign, allowing each party to conduct their due diligence and formulate any offer,” the statement said.
“Unfortunately, the administrators did not receive any binding offers.”
Hall Chadwick said there was no other option than to wipe Bonza of its workforce.
“While this is not the news stakeholders wish to hear, the administrators must make a decision with respect to the stand down of the employees,” the statement said.
“Furthermore, customers need certainty regarding the operation of future flights.
“As a result, the administrators have no option but to terminate all employees and cancel all future flights.”
The news was delivered to employees in an online town hall.
Hall Chadwick says the future of the company was still to be determined as a third party may still put forward a deed of company arrangement proposal for creditors consideration.
The deed would be a formal agreement to satisfy debts between company and creditor.
“The administrators will provide an update to all creditors shortly and will look to convene the major meeting of the company in which creditors will decide the future of the company,” the statement said.
How a Regional Trailblazer Became Grounded
Bonza cancelled all its flights from May 29 this year.Originally forming in 2021, Bonza operated numerous routes connecting regional cities and towns with big cities.
Many of these routes had never existed previously.
Flights were also cheap—an example of this being a return flight from Bundaberg in Queensland to Melbourne that was half the travel time and often a lower price than taking a train to Brisbane.
Many regional planes were packed with passengers.
In a statement of analysis, University of New South Wales experts Ian Douglas and Seena Sarram explained Australian budget airlines often struggled to maintain a presence in the skies.
According to the joint statement, it was a string of strategic missteps that likely took Bonza from servicing 24 regional routes to being grounded completely.
Running a small fleet of Boeing B737 aircraft with little cost advantage, the approach of requiring bookings via a mobile phone app and only offering periodic routes—in some cases only one flight a week—were all likely factors in investors pulling out and Bonza ultimately landing in voluntary administration.
