Bonza flights cancelled as aircraft repossessed

“This was a surprise to both ourselves and 777 Partners. We are currently assessing all options and will an update here just as soon as we have more information available to share. As a consequence to this, all first wave flights from all bases have been cancelled.”

Virgin Australia and Jetstar were scrambling to repatriate stranded travellers for free under the urging of transport minister Catherine King.

One source said Mr Jordan had been telling staff that Bonza tried to have the aircraft transferred under its name, claiming an investor is waiting to purchase the airline.

Bonza’s backer, Miami-based firm 777 Partners, had already appointed Korda Mentha to evaluate its options after its fleet of Boeing 737 Max-8 aircraft were rolled into a new vehicle by its senior funder, as revealed by the Financial Review.

With Hall Chadwick’s formal appointment, it is understood that Korda Mentha will step back from its advisory role.

“Bonza has temporarily suspended services due to be operated today as discussions are currently underway regarding the ongoing viability of the business,” a spokesman for Bonza said on Tuesday.

The fleet of aircraft had been 49 per cent held by 777 Partners and 51 per cent owned by the management of AIP Capital. In a statement on April 9, AIP confirmed the planes had been transferred to a new vehicle, Phoenix Aviation Capital, which is 100 per cent owned by insurance giant ACap.

One of Bonza’s aircraft that had been designated to fly permanently from Australia, Bruce, had been grounded for weeks at Gold Coast Airport as speculation swirled over unpaid leases. Another aircraft, Matilda, was redesignated to fly in Canada for Flair.

Nicole Morris disembarked a flight from Adelaide at Melbourne’s Tullamarine on Tuesday morning to board a connecting trip to Rockhampton in Queensland when airport staff announced to Bonza passengers that all services had been cancelled.

“We’ve just come to Adelaide to put our son on a plane to fly to London because he’s going to live over there, but we were flying Bonza home. I don’t know what to do,” Ms Morris said. “I have just been told we have to buy new onward flights.”

Bonza contacted her via SMS to inform her she would be entitled to a refund. No other airlines fly direct from Melbourne to Rockhampton.

Bonza flights were cancelled on Tuesday morning without warning.  Elke Mietzel

Michael Tonks from Geelong was in an Uber on his way to board a Bonza flight to Avalon in Victoria from Queensland’s Sunshine Coast, where he had just purchased a holiday home to take advantage of $69 one-way flights out of Melbourne’s second airport.

“We had to pay $565 for two people to get home on Jetstar and it flies to Melbourne, not Avalon, so we’ll have to get another Uber to our car,” Mr Tonks said.

“We’ll worry about refunds for the rest of the flights we’ve booked for the next six months when we get home, but this is just terrible.

“And you can’t tell me this all just happened in the last 24 hours – they only repossess planes because you haven’t paid your bills, I would assume.”

Vanessa Williams said the price of return flights skyrocketed on Tuesday.

“When I started booking it cost $150, but when I got to the next stage it said that flight was no longer available and would cost $180, but then in the final stages the price jumped to $210,” Ms Williams said.

“And that’s just to the Sunshine Coast, I still have to get someone to drive three hours from Bundaberg to come and get me.”

A Jetstar spokeswoman later said the airline would contact both passengers to refund them, while Virgin Australia said it would get stranded Bonza passengers who are mid-flight back to their nearest port free of charge.

Jetstar has also offered free seats to Bonza customers trying to get home today on its six overlapping routes and to nearby airports.

Passengers forced to find alternative routes after planes were repossessed. Elke Mietzel

Bonza planes were initially bought by 777 Partners during the COVID-19 pandemic and designated to the leisure carrier on long-term leases. But earlier in April, 777 Partners’ creditors created a new vehicle to take control of 30 MAX-8 aircraft linked to 777 Partners.

The airline strenuously denied reports that first appeared in The Australian Financial Review that KordaMentha had been appointed to run the ruler over Bonza’s finances.

Bonza was designed to take leisure travellers to destinations not served by the major airlines. It flies to unconventional places such as Rockhampton, Mildura and Port Macquarie.