Bonza sack all staff after administrators left with “no choice” as no buyer found

Insolvent airline Bonza has terminated the contracts of all 323 members of its staff following a failure by the administrators to secure a buyer for the company. The airline has cancelled all future flights. Bonza, which had been previously owned by 777 Partners, entered voluntary administration at the end of April 2024. Administrators Hall Chadwick had set a deadline of Friday June 7, 2024, for a buyer to submit offers – however none were received, leading to the decision to end the contract of all employees at the airline. Staff were present on the videocall where Bonza confirmed the decision taken, with ABC Australia reporting that many found it “disrespectful” that the call started 15 minutes late. ABC Australia also reported that the staff on the call asked questions to the administrators, with one asking why Hall Chadwick were “still entertaining hopes of receiving an offer”, alongside complaints from others regarding the “horrendous communication” from the administrators. A statement from Hall Chadwick discussed the state of Bonza: “The deadline for interested parties to submit a binding offer in relation to the future of Bonza Aviation expired at the close of business Friday 7 June 2024. The Administrators assisted a number of interested parties through the sale campaign, allowing each party to conduct their due diligence and formulate any offer. “Unfortunately, the Administrators did not receive any binding offers. While this is not the news stakeholders wish to hear, the Administrators must make a decision with respect to the stand down of the employees. “Furthermore, customers need certainty regarding the operation of future flights. As a result, the Administrators have no option but to terminate all employees and cancel all future flights. A meeting with the employees has been held advising them of their termination. “The future of the Company is still to be determined as a third party may still put forward a Deed of Company Arrangement proposal for creditors consideration. The Administrators will provide an update to all creditors shortly and will look to convene the major meeting of the Company in which creditors will decide the future of the Company. “The Administrators investigations into the Company’s business and affairs are ongoing and the results of these investigations will be provided to creditors in the major report convening the major meeting.”