Chief executive Tim Jordan said flights were being suspended amid discussions about the “continued viability of the business”.
Australian budget airline Bonza has suspended all flights over concerns about the viability of its business, potentially leaving thousands of passengers stranded.
The budget airline, launched in January last year, said on Tuesday it had suspended all services for the day amid discussions about the “continued viability of the business”.
“We apologize to our customers who are affected by this and are working as quickly as possible to determine a path forward that ensures continued competition in the Australian domestic aviation market,” chief executive Tim Jordan said in a statement.
Part of Bonza’s Boeing 737-MAX-8 fleet has been repossessed to recoup money owed to investors, the Sydney Morning Herald reported, citing sources familiar with the matter.
Transport Minister Catherine King said her department would set up a passenger helpline and had spoken to rival airlines to help those who were stranded.
Bonza, which connects smaller regional airports to larger destinations such as Melbourne, the Sunshine Coast and the Gold Coast, became the first new carrier to enter the Australian market in 15 years when it launched in January 2023.
The airline, whose slogan is “Here for Allstralia”, has promised to shake up Australia’s uncompetitive airline industry with discounted tickets and pragmatic, down-to-earth service.
But Bonza has been plagued by criticism since its launch, due to flight cancellations and the suspension of some routes.
The Australian domestic market is dominated by the Qantas and Virgin duopoly, which together control 95% of services.
Australia, the sixth largest country in the world, is heavily dependent on air travel due to its vast territory and widely dispersed population.
