The future of budget airline Bonza is in limbo as the company entered voluntary administration yesterday, cancelling flights and seeing its aircraft seized by creditors. It marks yet another airline that has succumbed to Australia's aviation duopoly.

Melbourne

Bonza, Australia's latest budget airline, has entered voluntary administration, leading to the cancellation of flights across its 21 destinations nationwide and the seizure of its aircraft by creditors. This development places Bonza among the numerous airlines in Australia that have failed, highlighting the challenges within the country's aviation industry.

The announcement left thousands of passengers stranded, sparking immediate disruptions and frustrations among travelers. Customers recounted their attempts to contact Bonza for assistance, only to find themselves facing a lack of communication from the airline. In Melbourne, one passenger, Karen Isbell, was forced to rebook her flight at a significant cost, illustrative of the immediate financial impact on travelers.

The airline, which commenced operations in January of the previous year, faced numerous challenges during its brief existence, including delays and route cancellations. This tumultuous period underscores the difficulties new entrants face in Australia's aviation market, which is dominated by a few major players.

In response to the crisis, both Qantas and Virgin Australia stepped in to offer assistance to affected Bonza customers, providing free flights to mitigate the situation. Though Bonza's closure reduces competition within the Australian market, experts believe the long-term impact on the industry will be minimal, drawing comparisons to the more significant impact of Ansett's collapse in 2001.



Bonza set to join long list of failed Australian airlines

Bonza grounded. One gets the sense that this is going to be permanent. Australia's newest budget airline plunged into voluntary administration and its fleet repossessed. My mother-in-law had messaged me and said, oh, I just heard about Bonza, hope everything's OK. And I was like, what do you mean? The news came early this morning. All Bonza flights at its 21 destinations Australia-wide were cancelled, leaving thousands of travellers stranded. Oh, it's ridiculous, like, to not give us any notice. And we've been trying all morning to be in touch with Bonza. In Melbourne, Karen Isbell had no choice but to rebook her flight to Rockhampton. And we're just sort of on the freeway coming here, so I just sort of went into panic mode, booked through Qantas and, yeah, $1,200 later. While on the Sunshine Coast, where Bonza is based, holidays and high school reunions were ruined. We've got work tomorrow, we've got schooling in tomorrow, so, anyway, we just have to grin it and bear it. The airline has had a short but chequered history. Launching in January last year, Bonza has been plagued with delays and route cancellations. And have no idea how I'm going to get my money back. Qantas and Virgin both offered free flights to Bonza customers left in the lurch. This is a very large island. Aviation is critical infrastructure and we've got an aviation industry that's broken. Bonza's departure from the skies meaning less competition on the market, but it's not the worst hit the industry has seen. Ansett's collapse in 2001 took out 50% of the capacity overnight. That was devastating. This is quite different and, you know, while it's not good to see, it's very disappointing to see, the long-term impact will be minimal. Brendan Crewe for 10 News First.

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