Massive layoffs at Bonza as company prepares for major revelation.

A labor group expresses concern for Australia's aviation industry as it leaves regional communities isolated.

June 11th 2024.

Massive layoffs at Bonza as company prepares for major revelation.
The Transport Workers' Union has announced that more than 300 employees of Bonza, a collapsed airline, have been laid off today. It's a sad day for the aviation industry in Australia, and the union expects to hear more about the future of the company later today.

This morning, the affected employees, who have not received any pay since the airline went into administration in April, were informed about the situation. Michael Kaine, the TWU National Secretary, expressed his sympathy for the employees, stating that it's been a challenging time for them with no pay for over two months since the sudden collapse of the airline.

Unfortunately, the impact of Bonza's collapse extends beyond the employees. Kaine also highlighted the negative consequences for regional communities in Australia, as they now face the challenge of unaffordable or unavailable air travel to stay connected with the rest of the country.

The administrators of the company, Hall Chadwick, are expected to release a statement this afternoon regarding the future of Bonza. It was reported that the administrators were trying to sell the airline and had set a deadline last Friday for potential buyers to submit an offer. However, no offers were received.

The collapse of Bonza can be traced back to April 30 when its aircraft were seized, two weeks after receiving default notices from the owner of its planes, AIP Capital. The airline had only been in operation since early 2023, making its downfall even more devastating.

Kaine believes that this unfortunate event serves as a reminder of the need for stricter regulations in the aviation industry. He mentioned that the affected workers are still waiting for the Fair Entitlement Guarantee scheme to be available so that they can claim their owed entitlements. However, they can now search for alternative full-time work, with Virgin Australia committing to prioritize hiring former Bonza employees.

Kaine also expressed concern for the future of the aviation industry, stating that it's highly likely that more skilled and experienced workers will be lost due to the frequent failures in the industry. He stressed the urgency of implementing a Safe and Secure Skies Commission to rebuild a strong and sustainable aviation industry. The industry has suffered significant blows in recent years, and it's time for action to prevent further devastation.

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