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Bonza staff have been stood down and told they won't be paid for work done in April, on the same day it emerged the airline received default notices two weeks before it cancelled all flights without notice and went into voluntary administration.
Transport Workers' Union (TWU) national assistant secretary Emily McMillan labelled the move to not pay workers "disgraceful."
"The shock of Bonza falling into administration has barely subsided and workers are being forced to enter Centrelink queues," she said.
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"It's appalling that Bonza has failed workers so spectacularly and that aviation workers are once again paying the price for a broken industry.
"These are hardworking people with bills to pay and families to feed. They are highly trained. This is a devastating blow and a cause for great worry in a cost-of-living crisis.
"Bonza's administrators must strain every sinew to find the means to pay these workers urgently. There is no greater priority than this."
Late last night, Hall Chadwick, which was appointed as administrators on Tuesday, said the budget airline was handed notices on April 17 by the company that owns its planes, AIP Capital.
Bonza continued selling tickets in the 12 days between receiving the notice and cancelling all of its flights.
It didn't expect to have its aircraft seized despite the notice, Hall Chadwick said.
"On 29 April 2024, at 11.51 pm AEST, the lessors of the aircraft leased to the Company (Bonza) issued notices to the company terminating their leases in place for the aircraft," a statement from the administrators said.
"Amongst various other requirements, these notices required the company to immediately cease to operate the aircraft and keep the aircraft grounded and safely secured.
"Whilst these notices were preceded by event of default notices issued on 17 April 2024, the directors of the company have advised the action taken by the lessors was not foreshadowed or expected."
More than 3000 Bonza passengers had to find alternate flights with Australia's other airlines following the sudden cancellations on Tuesday, federal Transport Minster Catherine King said.
Discussions between Bonza and AIP are continuing, with planes to remain grounded until at least next Tuesday.
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Hall Chadwick said Bonza doesn't have enough money to continue operations while its planes are stuck on the tarmac, and that most of its roughly 150 staff have been stood down.
"Meetings between the administrators, the interested parties and the lessors are continuing daily," the administrators said.
"During this time, whilst the aircraft remain grounded, and there is insufficient cash flow and funding, the administrators are unable to recommence full operations.
"The administrators also have no alternative but to stand down the majority of the employees of the company, pending the outcome of these above ongoing discussions."
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Hall Chadwick said it was unable to detail Bonza's current financial position.
It repeated yesterday's message that customers won't be given refunds anytime soon.
"The processing or issuing of refunds from the company cannot occur at this time,' it said.
"Customers who have had their flights cancelled should contact their financial institution to discuss available options.
"Customers may also wish to liaise with any insurance providers, in the event they have travel insurance for the bookings."
