Australia’s newest budget airline Bonza has fallen into voluntary administration, leaving thousands of passengers stranded across the country after it cancelled all flights.
Journeys with Bonza were all cancelled on Tuesday as the group appointed Hall Chadwick as voluntary administrators for the company’s holding and operating businesses.
It comes only a year after Bonza began completing flights, having been the first new Australian airline in around 17 years.
"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 aviation market,” a company statement said.
Airlines are one of Australia’s most concentrated markets, with Qantas and Virgin Australia (ASX:VAH) taking up a 95% share of the domestic aviation industry.
Both companies have offered to help anyone left stranded mid-journey by Bonza’s cancellations.
A federal transport department emergency hotline has also been set up to help passengers, with journeys particularly affected in Queensland and Victoria.
Bonza, which was launched in 2021, suffered from aircraft shortages and low customer numbers since taking to the skies in 2023.
It led to several routes being slashed and combined with the group’s failure to secure take-off access and landing spots in Sydney, concerns arose about its future.
Local media reported Bonza’s eight planes, all of which are Boeing (NYSE:BA) 737 Maxs, were repossessed by creditors on Tuesday.