Yahoo Finance Bonza Airlines: Hundreds of sacked workers fight for pay after sudden collapse
Hundreds of Bonza staff have been officially terminated following the airline entering voluntary administration in April.
Hundreds of Bonza staff have been officially sacked, after hopes of finding a buyer for the embattled airline were dashed. They are also yet to be paid for months of work as administrators say they had no choice but to terminate staff and cancel all future flights.
The budget airline entered voluntary administration on April 30, less than 18 months after launching its first passenger flights. More than 300 workers were stood down and were told they would not be paid for work done in April.
Administrators Hall Chadwick confirmed to all staff today their employment would be officially terminated after it was unable to secure any "binding offers" to buy Bonza by last week's June 7 deadline.
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“While this is not the news stakeholders wish to hear, the administrators must make a decision with respect to the stand down of the employees,” Hall Chadwick said in a statement.
“Furthermore, customers need certainty regarding the operation of future flights. As a result, the administrators have no option but to terminate all employees and cancel all future flights.”
Hall Chadwick said Bonza's future was still to be determined, with hopes a third party could come forward.
Workers 'in limbo'
Transport Workers Union national secretary Michael Kaine said it was "incredibly difficult news for Bonza employees who have received no pay for more than two months after the airline’s sudden collapse".
As Bonza is still in voluntary administration, workers have not been able to claim under the government's entitlement recovery program, which is a "last resort" for employees to claim back unpaid wages and entitlements.
“Workers remain in limbo, with the Fair Entitlement Guarantee scheme not yet available to claim their owed entitlements,” Kaine said.
“Today, they gained the freedom to pursue alternative full-time work, with Virgin Australia having previously committed to prioritising Bonza staff.”
Hall Chadwick reportedly told creditors last week that the sale of the airline was considered unlikely and staff would likely be permanently terminated.
It told the confidential meeting that 777 Partners, the private equity firm that backed Bonza, had “other pressing issues” internationally and were unable to discuss payment of staff wages.
It comes after Bonza’s last aircraft left the country after they were repossessed by the lessor. The 737 Max 8 aircraft “Sheila” departed from the Gold Coast on Wednesday and was bound for a layover at Port Hedland before flying to Kuala Lumpur, Australian Aviation reports.
The budget airline owes more than $100 million to backers, customers and staff. This includes $5 million to 323 staff, as well as airfares to customers on cancelled flights.
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