Hundreds of Bonza staff stood down immediately without back pay
A town hall meeting of 280 Bonza employees brought the news that most staffers would be stood down, without being paid for the work they did throughout April.
The grim meeting was hosted by administrator Hall Chadwick and CEO Tim Jordan on Thursday night, who – according to news.com.au – warned staff that any chance of back pay and other entitlements may be put into jeopardy in they find other non-casual work in the interim.
Bonza was forced into voluntary administration on Tuesday, after the repossession of its planes by lessors AIP Capital.
In a statement given to Mumbrella on Friday evening, administrators confirmed that they “stood down 302 of the 323 total workforce” via a virtual meeting.
An “employee enquiry line” has also been opened by the administrators to assist the ex-staff.
Hall Chadwick said discussions are ongoing regarding the future of Bonza, but “insufficient cashflow and funding” means they will lay off the majority of workers.
“Meetings between the administrators, the interested parties and the lessors are continuing daily,” a statement reads.
“The administrators have also been in meetings and discussions with key industry participants within Australia and overseas with regard to the current status, and a way forward for the company and its operations.
“The largest consideration for these parties is the current status of the aircraft, which currently remains grounded. The administrators have had a number of discussions with the Lessors.
“As a result the grounding of the fleet will continue at least from Friday, May 3, 2024 to Tuesday, May 7, 2024.”
Hall Chadwick also said Bonza directors had received “event of default notices” on April 17, despite continuing to sell tickets until Tuesday April 30.
A spokeswoman for Transport Minister Catherine King said “it is the duty of company directors to determine when a company is insolvent and must stop trading.
“In instances where a company is found to have been trading while insolvent, serious penalties apply.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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