May 7th 2024.
The embattled airline, Bonza, is currently facing some financial struggles, which have led to nearly 60,000 of its customers becoming potential creditors. This matter has now reached the court, as the lawyers for the newly appointed administrators of the airline appeared before the Federal Court on Tuesday. They requested to hold the first meeting with the creditors in just three days.
However, there were a few points of contention, as Justice Elizabeth Cheeseman questioned the venue, timing, and method of conducting the meeting. She pointed out that it was odd for the meeting to be held in Sydney, considering that Bonza does not operate flights from that city. The airline had recently cancelled all its flights due to its financial woes, and the termination of lease agreements on their Boeing 737-8 planes only added to their troubles.
The barrister representing the administrators, James Hutton SC, informed the court that almost 60,000 passengers could potentially become creditors as their bookings were cancelled. He also mentioned that about two-thirds of them had received an email outlining the administration process by Monday morning.
Hutton also proposed a hybrid model for the meeting, where 200 people could attend in person, and the rest could participate online. He explained that accommodating 20,000 attendees would require a stadium. However, Justice Cheeseman raised concerns about the choice of Sydney as the venue and suggested allowing more time for the potential creditors to vote as a bloc.
In a separate development, it was revealed that Bonza's financial woes were unexpected, and it was primarily due to lessors reclaiming planes. This sudden cancellation of flights has affected not only the customers but also the employees of the airline. Prime Minister Anthony Albanese expressed his concerns and stated that more needed to be done to protect consumer rights in the aviation industry.
Opposition Senator Bridget McKenzie also voiced her concerns and called for the government to provide assistance to the affected workers and customers. She also demanded an investigation into Bonza's financial backers, 777 Partners, who also own the majority share of A-Leagues club Melbourne Victory. It is clear that the collapse of this budget airline has not only affected its customers but also raised questions about the stability of the aviation industry.
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