Collapsed Australian airline Bonza has officially let go of hundreds of employees in a mass video call after failing to find a buyer before the deadline set by its administrators.
The company fell into administration on 30 April, after its fleet was suddenly repossessed by creditors, but had been hoping to find a new owner, with administrators Hall Chadwick setting 7 June as a deadline for bids.
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However, with no prospective buyers stepping forward, the company called a company-wide online meeting on Tuesday (11 June) to inform 323 of its employees that they would be losing their jobs, reportedly leaving staff furious about being left waiting for so long.
A statement from Hall Chadwick said: “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.”
Despite this drastic action, and the lack of interest before the deadline, the administrator has said that it still believes a new owner could come forward to take on the low-cost airline.
However, with the company’s fleet of six 737 MAX 8 aircraft still in the possession of its private equity owners 777 Partners and AIP Capital, and nearly all of its staff let go, any interest in Bonza would only be in its air operator license and brand name.
Additionally, at least one of the aircraft has been flown out of the country, with its ‘Bruce’ plane being brought to an undisclosed location in the US in May.
