Bonza has mass-cancelled flights from multiple Australian airports as fears grow for the future of the troubled airline, with the company conceding its “ongoing viability” is up in the air.
While some flights are listed to depart as scheduled, most of its services have been cancelled on Tuesday morning.
“Bonza has temporarily suspended services due to be operated today, as discussions are currently underway regarding the ongoing viability of the business,” chief executive Tim Jordan said in a statement.
“We apologise to our customers who are impacted by this and we’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market.”
A report has emerged saying Bonza’s fleet of planes is being seized by creditors. Jordan did not address the claims.
Federal transport minister Catherine King has been made aware of the mass cancellations.
“I have spoken to Qantas and Virgin CEOs this morning and both airlines stand ready to assist stranded passengers needing to get home,” she said.
“My department has reached out to Bonza and our expectation is that they keep passengers informed of their options and their consumer rights.”
The low-cost airline, launched in January 2023, has been plagued by complaints of delays and cancellations, as well as reports of injuries to cabin crew from turbulence.
Last week, two crew members were hospitalised following reports of “fumes” on board a plane.
The Sunshine Coast-based airline recently denied claims it had engaged accounting firm KordaMentha to advise on its finances.
Those reports sparked the Transport Workers Union to criticise the airline industry’s hostility “for any new entrant, marked by aggressive competition and a lack of regulated standards”.
“This volatile industry has seen the collapse of Ansett, Virgin fall into administration, and Qantas go cap-in-hand to the government, force wage freezes on workers, price-gouge customers, and take over $2 billion of taxpayer funding while illegally sacking 1700 workers,” the union’s Emily McMillan said on April 19.
In a lengthy statement to 7NEWS.com.au about repeated concerns about flight cancellations and delays in December last year, Jordan blamed the issue on the deployment of a spare aircraft “to temporarily serve the Gold Coast base”.
“(That) has led to an increase in cancellations for November at 4.3 per cent as we lose the resilience in our network when things go wrong as they sometimes will in any operational environment,” Jordan said in an email.
“We are acutely aware of the impact this has on our customers and we are very sorry for this.
“We acknowledge things won’t always go to plan but it’s how we show up for customers that matters and will define us.
“We notify customers as soon as possible, and if a flight is cancelled Bonza customers are entitled to a full refund or replacement flight and, where required, Bonza will provide accommodation, meals and transportation. Wherever we can, we notify customers as early as possible and ideally in advance of arriving at an airport.”