The AFR View
Bonza’s grounding strands airline competition too
Had the government dealt with some of the highly public problems of aviation with more alacrity than it has, the failure of one small player would not have seemed such a blow.
Bonza’s flight into administration this week was dramatic. Seventeen months after the budget airline started operations, the repo people working for creditors of its Miami-based private equity co-owner 777 Partners started seizing four of its six aircraft apparently even while passengers were still on board.
Problems in 777’s Bermuda-based insurance business led to creditors pursuing 30 aircraft owned by its one-time aircraft leasing partner, Bonza’s planes among them. It has left 33,000 passengers with little chance of a refund, many stranded on the day, weeks after The Australian Financial Review revealed that Bonza’s owners had called in restructuring firm KordaMentha for advice.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Transport
Fetching latest articles