Bonza Airlines collapse: Employees left ‘screaming and crying’ as the budget airline implodes

Employees of budget airline Bonza were ‘screaming and crying’ when they learnt they would not be paid a month’s wages after its fleet of aircraft were grounded.

The airline suspended all flights at 11.51pm on Monday and went into voluntary administration hours later.

In a statement, Bonza revealed the leases to its planes had been unexpectedly terminated because it had defaulted on its loans the previous month.

Flights will remain grounded until May 7 at the earliest as Bonza administrators Hall Chadwick conduct daily meetings with interested parties and lessors.

‘During this time, whilst the aircraft remain grounded, and there is insufficient cashflow and funding, the administrators are unable to recommence full operations,’ a statement read.

‘The administrators also have no alternative but to stand down the majority of the employees of the company, pending the outcome of these above ongoing discussions.’

The ABC has revealed about 150 staff have been stood down without pay, with many left ‘screaming and crying’ at the news they wouldn’t be compensated for their work in April.

‘(The administrators) said they can’t do anything – they are not in a position to pay anyone,’ the staffer told the ABC.

‘I would have thought staff would get paid, even half. They get nothing. Zero.

‘They’ve put petrol in their car and driven to work five days a week. Rent is due and they’ve got no money.’

The news was revealed during a virtual staff meeting with Bonza chief executive Tim Jordan on Thursday night.

Another employee told the national broadcaster that Bonza staff were ‘in tears’ as they queued outside Centrelink on Friday.

In a statement, Hall Chadwick acknowledged that it ‘is a difficult time for all involved’.

It said it was continuing to conduct meetings about the budget airline, including establishing an ‘open dialogue’ with the lessors of Bonza’s fleet.

The suspension is expected to affect 183 flights and more than 33,000 passengers over the next week.

Bonza said there was ‘no alternative course of action’ and customers booked for Bonza flights from May 3 to 7 should not rely on their travel plans unless new arrangements have been made.