Troubled Bonza’s funding ‘sporadic, delayed’, administrator report finds

Now-shuttered Australian carrier Bonza received funding from parent company 777 Partners “sporadically” even as it racked up significant losses in its first year of operations. In a creditor report released 25 June, administrators Hall & Chadwick found that the funding from 777 Partners was ultimately “not sufficient” to meet Bonza’s accrued debts, forcing the airline to go under. Bonza began operations in January 2023 but suspended operations abruptly just over a year later in April. The low-cost airline operated Boeing 737 Max 8’s and its business model focused on unserved Australian domestic routes. The Hall & Chadwick report found that the airline never made a profit in its brief operating period. For the 10-month period leading up to its collapse, the airline posted a loss of over A$80m ($53m). This was higher than the loss it reported in the year ended 30 June 2023, where it was A$50.3m in the red. The report also suggests that airline directors had engaged in trading while the airline was insolvent - an offence under Australian law - by accepting bookings despite not knowing if the airline was able to continue its operations. In the over 120-page report, administrators pointed out that the airline had already encountered difficulties in the lead-up to launch. In 2022, the airline’s launch was hit by a series of delays, including in getting new aircraft and securing its air operator’s certificate. Bonza also encountered simulator access restrictions which delayed its launch. The report found that Bonza suffered from “staffing shortages”, as a result of salaries being lower than at competitors. These issues were compounded by the lack of funding from Miami-based 777 Partners.<br/>