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Bonza’s administrator has revealed the airline had accumulated a loss of more than $133 million despite only operating for a little over a year.
In its report to creditors, Hall Chadwick blamed a number of factors for the business’s failure, including “insufficient” and “sporadic” funding from parent company 777 Partners, and recommended the company be wound up.
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Local directors Tim Jordan and Lidia Valenzuela, meanwhile, argued Bonza was making positive progress towards being cash-positive by the end of 2024 but were let down by undercapitalisation on the part of 777 Partners.
Bonza entered voluntary administration in April after all its planes were seized by lessor AIP Capital, and now looks set to be liquidated. Earlier this month, all of its staff were subsequently sacked.
In its report, released on Tuesday night, Hall Chadwick said it would continue to investigate Bonza’s affairs during the winding-up.
“Legal claims have been briefly discussed earlier in this report and we will be conducting further investigations into the possibility of recovering voidable transactions and/or compensation for insolvent trading if appointed liquidators,” the administrators wrote.
The second creditors’ meeting has been set for next Tuesday, 2 July, but may be adjourned if last-minute offers arise, Hall Chadwick noted.
“Should any party provide a proposal for a DOCA prior to the forthcoming meeting of creditors, the Administrators may consider proposing a resolution adjourning the meeting in order to consider the proposal and further report to creditors of the Company.”
Hall Chadwick had previously said it was speaking to around 20 interested parties, with six “very interested” in buying Bonza, though none ultimately came to fruition.
The news comes after the Sunshine Coast’s mayor warned that Bonza’s collapse could cost the region more than $100 million.
Mayor Rosanna Natoli wrote to Queensland Premier Steven Miles asking for help from the state government, saying the Sunshine Coast had benefited considerably from Bonza’s presence since its launch in January 2023. Sunshine Coast Airport was the carrier’s first of three hubs.
According to Natoli, Bonza had accounted for more than 20 per cent of the airport’s activity since its first flight, bringing in more than 490,000 additional passengers.
“Its presence, along with the other major airlines, helped achieve a record number of interstate visitors last year. I have written to the Premier of Queensland to explain what this loss means to our region,” she said.
“I’ve requested an opportunity to discuss options and talk through how we can work in partnership with the Queensland Government to recover from Bonza’s sudden and disappointing collapse.”
According to the mayor, an estimated 150 Bonza jobs – around half the total employees – were based in the region, while local businesses, including suppliers, cleaning, catering and support services, as well as the Sunshine Coast’s tourism industry, will be impacted by the collapse.
“Many of these businesses will now be joining the reported 60,000 creditors in a lengthy process with the hope of recouping some of their losses,” she said.
“The number of indirect jobs affected by the sudden closure is also likely to be significant with dozens of businesses impacted. The majority of products sold on board Bonza were supplied by 11 SEQ-based suppliers.
“Whilst we are hopeful a solution might be found to allow Bonza to resume operations, the likelihood of this outcome now appears remote – which is why we need Queensland Government support now to mitigate the impacts on our community.”
