Bonza, an Australian airline based on the Sunshine Coast, has suspended all flights after its aircraft were repossessed by aircraft asset manager AIP Capital, leading to the cancellation of flights on April 30.
The situation escalated quickly as Bonza CEO Tim Jordan announced the flights were on hold due to ongoing discussions about the business’s viability, but did not disclose that AIP Capital had seized the fleet overnight, including a Boeing 737-8MAX VH-UJT leased from Dublin based SMBC.
Bonza, launched in early 2023 with backing from 777 Partners, faced challenges with its business model of deploying B737-8s on thin Australian secondary routes, compounded by holiday periods provided by airports for landing fees expiring, rendering routes financially unsustainable.
The airline, which needed ten aircraft to break even but never had more than half that number, faced further setbacks when aircraft were diverted to sister airline Flair Airlines and deals to convert wet-leased aircraft into longer-term leases fell through. Bonza is expected to file for voluntary administration and has appointed Hall Chadwick as administrator.
Bonza CEO Tim Jordan has apologised to their customers with the Company working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market.
