Australian budget airline Bonza goes into voluntary administration, aircraft seized by AIP

Australian budget airline Bonza, part of American investment company 777 Partners, has gone into voluntary administration on April 30, reported by various media outlets. Its fleet of 737 MAX 8 aircraft will be grounded until at least May 2, 2024, with Bonza customers advised not to travel to the airport during this period. ""Bonza has temporarily suspended services due to be operated today (Tuesday 30th April), as discussions are currently underway regarding the ongoing viability of the business,"" Bonza said in a statement. Hall Chadwick, an association of chartered accounting and business advisory firms, announced it was appointed as the voluntary administrators for Bonza, which means it will ""allow an independent insolvency practitioner to take control of the company during which creditors' claims are put on hold."" The statement added that, with the engagement of Norton Rose Fulbright, it is ""currently considering the continuing trading of the company's operations during the course of the administration period including the continuation of employment of all employees of the company."" Hall Chadwick added in a statement it has commenced engagement with all key stakeholders, including secured creditors, government bodies, key suppliers, and contractors. It was reported by 7NEWS Australia that Bonza CEO Tim Jordan had been notified in the early morning by AIP Capital that it was seizing its 737-8 aircraft on lease to the airline. An internal note sent to staff from Jordan, seen by the Guardian, revealed that the repossession had come as a shock to the CEO and the airline that had begun operations in January 2023. According to Cirium data, Bonza had four 737 MAX 8 aircraft on lease from AIP Capital. On April 9, 2024, AIP Capital had announced the formation of Phoenix Aviation Capital, a ""full-service aircraft lessor focused on financing modern, in-demand aircraft across the globe."" It added that Phoenix had a ""definitive agreement to acquire the rights, interests and obligations of a portfolio of 30 737-8 aircraft from 777 Partners."" It was reported in January earlier this year by Reuters that 777 Partners was being sued by Corvus Lights Aviation, MAM Aircraft Leasing 4 and Columba Lights Aviation after Canadian ultra low-cost carrier Flair had missed leasing payments. 777 Partners, a minority investor in Flair, provided guarantees for the four leased 737-800 aircraft. Bonza said: ""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."" Several customers travelling with Bonza had reported on X, formerly Twitter, that they were stranded or stuck at airport after being notified by Bonza on the app that services had been suspended. One customer said that the suspension had left him ""stuck in the Gold Coast and had to buy another flight and another nights accommodation"". The main player in the Australian aviation market, Qantas, and its subsidiary Jetstar offered affected Bonza customers with complimentary flights ""where we have seats available"". In addition, both airlines said in a statement: ""If Bonza employees would like to discuss recruitment opportunities within Jetstar and Qantas, particularly in specialised fields, which are unique to aviation, we've set up a dedicated page on the Jetstar careers website."" Virgin Australia also offered complimentary seats to impacted Bonza passengers. Hall Chadwick had set up a dedicated number for customers to contact for any queries, while the Australian government had established a hotline for stranded passengers.