Bonza: Australia's low cost airline suspends operations
Thousands of passengers are stranded at the airport while the future of airline workers hangs in the air
Australia's newest budget airline, Bonza, was forced to suspend all its flights on Tuesday, leaving thousands of passengers stranded around the country. The move came as the airline's management discussed the ongoing viability of its business model just two years after launching in 2023.
This sudden closure has raised concerns about the airline's future and the impact on its workers.
Bonza was the first carrier to launch in Australia in 16 years, promising low-cost fares and improved regional connectivity via a suite of new destinations. However, the airline struggled to compete with two major players, Qantas and Virgin Australia, which account for 95% of the nation's domestic aviation market.
According to local media, Bonza's eight planes, a fleet of Boeing 737-Max, were repossessed by creditors on Tuesday. The airline has not publicly addressed the claim.
The sudden closure has left many passengers distraught, including Mel Watkins, who was due to fly to Launceston for a family holiday. She told the Australian Broadcasting Corporation (ABC) that she was "absolutely shattered" by the news that her flight had been cancelled.
Australia's Transport Department set up an emergency help hotline for stranded passengers on Tuesday. Qantas and Virgin Australia also offered to step in and assist anyone stranded mid-journey. The cancellations impacted departures across Queensland and Victoria, highlighting the precariousness of the aviation industry in Australia.
Bonza's struggles also reflect the challenges new entrants face trying to break into an industry dominated by established players. Australia's leading transport union is seeking an urgent meeting with the airline's leadership to discuss how the sudden closure will impact workers.
The national secretary of the transport workers union, Michael Kaine, criticised the "unchecked corporate greed" in the aviation industry that's led to higher fares and warned that any carrier attempting to break into the market "has little chance of survival."
The sudden closure of Bonza has left many questions unanswered about the airline's future, the impact on its workers, and the aviation industry in Australia as a whole. As the nation's consumer watchdog has noted, aviation remains one of the country's most concentrated industries, raising concerns about competition and the impact on consumers.
The fallout from Bonza's closure underscores the challenges new entrants face trying to break into a highly competitive industry dominated by established players.