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Bonza enters voluntary administration

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Bonza enters voluntary administration
Australia’s young low-cost airline entered voluntary administration today after suspending its services this morning.

Bonza entered the Australian marketplace in early 2023, offering primarily regional to regional routes, with many not flown by Australia’s other domestic carriers. It also launched a group bookings arm in October 2023.

This morning Bonza put out a short statement indicating there were significant issues at the airline.

“Bonza has temporarily suspended services due to be operated today…as discussions are currently underway regarding the ongoing viability of the business,” the statement said.

“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 domestic aviation market.”

As recently as last month, Bonza had been putting new routes into operation. On March 29, it launched a Sunshine Coast to Launceston service, connecting the two destinations for the first time.

A report from the Australian Competition and Consumer Commission (ACCC) last June highlighted the significant duopoly of Australia’s domestic aviation market and said that while other substantial competitors would make pricing more competitive, there were challenges for newer and smaller players in the market like Bonza.

“Rex’s expansion onto major intercity routes and Bonza’s launch have been positive developments for competition, but their share of the market is small and there are barriers to growth,” said the ACCC chair, Gina Cass-Gottlieb, at the time the report was released.

With Bonza’s flights currently suspended, Qantas, Jetstar and Virgin Australia are offering stranded passengers complimentary flights where they can.

Should Bonza fail, it will be a blow to conference delegates from regional Australian destinations who enjoyed the increased connectivity the airline’s entry into the market offered. For some major regional conferencing destinations – and Darwin – Bonza’s services also offered more options to bring delegates in for meetings.

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