Bonza Airline Discussion

[yachty]

Bonza’s administrators concede sale hopes dead, staff to go

The low-cost airline collapsed in late April. A confidential creditors’ meeting was told on Thursday that administrators may consider legal action instead.

www.afr.com

All staff to be terminated next week with no buyer on the horizon. ASIC are looking into if it traded while insolvent.

Relevant to earlier discussions in this thread:

Hall Chadwick said that through discussions with the Civil Aviation Safety Authority, it had determined the AOC would only be transferrable if the acquirer purchased shares in Bonza and that it could not be sold as a single asset. The meeting was given documents disclosing $143 million in liabilities, of which $138 million is owed to unsecured creditors, including $80 million to financiers and lessors, and $5 million to staff.

The article also said the officeholders required to keep the AOC valid have continued to be paid since the airline went into administration.

 

[Saab34]

Certainly grim.

I think it’s fair to say, we won’t be seeing any new entrants for a long while now. I am slightly concerned with the Rex financials, and unknown what lies ahead with its 737 operation.

Perhaps the future is QF (Full), VA (Middle), JQ (Low), and Rex (Saab).

 

[p--and--t]

Going, going, goooooooonnnnneeee

All staff let go today

 

[Saab34]

They are not sending it to liquidation yet however, which will delay any government payments to staff.

I read something in that they are chasing up insurers to see if they can get cash that way.

777 Partners obviously delaying liquidation to give itself some form of payment, staff are the least of their concerns.

 

[SeaWolf]

They are not sending it to liquidation yet however, which will delay any government payments to staff.

I think the staff are now eligible for the Fair Entitlements Guarantee payment. The business doesn't have to have gone into liquidation, just insolvency, and then once the staff have lost their jobs, they're probably eligible.

Fair Entitlements Guarantee - Department of Employment and Workplace Relations, Australian Government

A legislative safety net scheme of last resort with assistance available for eligible employees.

www.dewr.gov.au

You may be eligible for FEG assistance if you:

• have lodged an effective claim within 12 months (of either the date of the end of your employment or the date of the liquidation or bankruptcy of your former employer)
• have lost your job due to the insolvency of your employer or were terminated after, or within six months before, the appointment of an insolvency practitioner for your employer

 

[kookaburra75]

I think the staff are now eligible for the Fair Entitlements Guarantee payment. The business doesn't have to have gone into liquidation, just insolvency, and then once the staff have lost their jobs, they're probably eligible.

Fair Entitlements Guarantee - Department of Employment and Workplace Relations, Australian Government

A legislative safety net scheme of last resort with assistance available for eligible employees.

www.dewr.gov.au

Correct - having been on the receiving end of insolvency in Jan. On the day the receiver was appointed, he turned up at the office and handed out packs, which contained the formal separation notice (for Centrelink etc), and the paperwork for the FEG. I lodged it that afternoon while at the airport to get home. I received my eligible payment four months later. There have been so many companies go through this calendar year, it's set new records, and delayed payments from 40 working days to 120 working days.

 

[TedE]

Administrators report at https://www.hallchadwick.com.au/wp-content/uploads/2024/06/BONZAV-Report-to-Creditors-25.06.24.pdf

Probably lots to go through, but there is no DOCA so liquidation will be the likely outcome of Tuesday's creditors' meeting.

 

[FruitySnack]

Section 11.1 confirms they were trading insolvent. Hope there will be some repercussions.

 

[antycbr]

Section 11.1 confirms they were trading insolvent. Hope there will be some repercussions.

Having read that report and done the AICD Company Directors Course they should have pulled the plug several months earlier. The US directors will get away with it.

 

[jakeseven7]

Section 11.1 confirms they were trading insolvent. Hope there will be some repercussions.

What a cluster

 

[Saab34]

Makes one wonder how on earth this was to ever make money. The debt at the end of June 2023 was eyewatering enough. The trends in those graphs paint a grim picture.

They didn’t seem to budget and forecast for anything. Cost blowouts everywhere in the report. Not accounting for this, not accounting for that, unexpected costs here..there…everywhere.

 

[Harrison_133]

Article behind paywall, but Jetstar are stepping in and adding CNS-MCY 3 times a week.

Source: https://www.couriermail.com.au/busi...k=7a079bfc6a1890a14812147792d1024c-1719360132

 

[HS-TQE]

Not surprised at the JQ pick up for.CNS-MCY. The remaining question is whether if it's seasonal or year round (and wishful thinking- whether if it's timed to/from the Japan 787 KIX/NRT block out of CNS)

 

[yachty]

Makes one wonder how on earth this was to ever make money. The debt at the end of June 2023 was eyewatering enough. The trends in those graphs paint a grim picture.

They didn’t seem to budget and forecast for anything. Cost blowouts everywhere in the report. Not accounting for this, not accounting for that, unexpected costs here..there…everywhere.

For sure. The directors told administrators they were planning to be cash positive by the end of 2024, which seems at odds with everything else in the report.

There was never a ticket sold for more than $189 and letters of demand for payment started arriving as early as July 2023...

 

[Saab34]

There was never a ticket sold for more than $189

What do you mean? Revenue divided by Pax numbers?

 

[Harrison_133]

What do you mean? Revenue divided by Pax numbers?

"The Australian Domestic Air Fares benchmarks for economy is approximately $141.

The Company’s average fare price per passenger for the period from 31 January 2023 to 24 April 2024 is calculated to be approximately $104.

Based on this information, the average cost of fares was cheaper than industry standard for discounted air fares. The Company’s fares for various routes were set between $49 to $89 and reaching a maximum price of between $149 and $189."

 

[HS-TQE]

Bonza's administrators and creditors had officially voted for liquidation at today's meeting. The voluntary administration process is finally over.

Bonza officially collapses after creditors approve airline liquidation

www.9news.com.au

 

[Chicken]

Bonza's administrators and creditors had officially voted for liquidation at today's meeting. The voluntary administration process is finally over.

The ABC Sydney's newsreader had been reading the news update on the radio for the last few hours by saying that Bonza is officially "finished".

 

[Saab34]

Well that’s it I guess. Great product, great service (when they didn’t start to cave in), but just a terrible business plan. I liked many things they did. They tried to be different. But different just didn’t work. Loved the smaller touches they did like the Aussie menu, the cartless cabin, order food from your phone and they bring it to your seat. I’m glad I got to fly a few legs on routes that I will likely never fly again. What was also uplifting was the staff seemed to love working there. One for the memory book. I will actually miss this mob.

I note the advertising banners are still on the Cairns Outer airport fence. Many airports still have the logos up. Reminds me of the Ansett collapse with signage still visible many months after.

Farewell Bonza.

 

[HS-TQE]

On a related note, Sheila (VH-UJK) is set to return to LOT Polish Airlines as SP-LVT (was SP-LVI before it went to Bonza)

So "going full circle" for the first of the x4 Bonza aircraft.