Bonza staff receive CEO memo at 3am amid concerns for future of airline

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Cabin crew members for ‘ultra-Aussie’ airline Bonza say a 3am memo was shared by the airline’s CEO just hours before mass flight cancellations swept the country on Tuesday.

The airline was forced to cancel multiple flights across both Queensland and Melbourne, leaving potentially thousands of passengers stranded.

Following the flight suspensions, it was announced on Tuesday the airline has entered voluntary administration. Accounting firm Hall Chadwick has been appointed as external administrators.

In a public statement issued on Tuesday morning from Bonza’s CEO Tim Jordan, services were “temporarily suspended” while discussions surrounding the “viability of the business” took place.

Prior to Tuesday’s public downfall, there has been mounting speculation surrounding the airline’s financial position and possible repossession of leased aircraft.

Bonza's future in doubt

According to reports, it is understood that Bonza’s financial backer, Miami-based firm 777 Partners, have called restructuring specialists KordaMentha for financial advice about its ongoing operations in Australia.

However cabin crew members claim the writing has been on the wall for some time now, with staff cost-cutting measures and “bandaid” solutions present for months.

Speaking to news.com.au, a Queensland-based cabin crew member — who asked to remain anonymous — shared an internal staff message received from Mr Jordan at 3am on Tuesday regarding the airline’s circumstances.

Viewed by news.com.au, the memo advised that “all aircraft have had repossession proceedings commenced by AIP the aircraft lessor”.

“This was a surprise to both ourselves and 777 partners,” the memo from Mr Jordan read.

“We are currently assessing all options and will provide an update just as soon as we have more information available to share.

“As a consequence of this all first wave flights from all bases have been cancelled.”

The cabin crew member told news.com.au that “something has been going on” for a while and that the airline had been “tightening the strings” more and more.

“What’s become evident is that they are not feeding staff with crew meals or paid breaks anymore,” the staff member said.

“There is this ongoing feeling of tightening the strings … we are now limited to one bottle of water each, and no green tea.

“These kind of things are happening all the time.”

The cabin crew member — who is still rostered on to work on Wednesday — said despite the airline going into voluntary administration, nothing has been communicated to staff.

“Nobody knew anything,” she said.

“Somebody shared in our group chat that we had gone into voluntary administration. The airline have not told us anything.”

Prior to the announcement of the airline going bust, the airline’s Chief Operations Officer Michael Young called for calm despite ongoing uncertainty and angst for staff members.

“Things are happening to resolve the situation we are in,” the email, cited by news.com.au, read.

“I cannot say much at this stage but suffice to say we are fighting this. I realise the uncertainty is gnawing away at everyone. This is natural. But we have an AOC which is valuable, we are safe and we have product.

“Hang in there.”

In addition to the lack of water and paid breaks, staff said access to ample uniforms was another indication the airline was under pressure.

“When you start with Bonza, you are given the bare minimum,” she explained.

“In the first few weeks … you’re lucky to get a whole outfit.

“Most get a top, no jacket and often buy their own pants.”

In an interview with the ABC, a man from the Sunshine Coast, whose wife works for the airline, claimed 20 cabin crew were called into a meeting early on Tuesday and told the airline had “finished”.

“She went to work this morning, as per usual, they just went in — there were two crews there — they were just basically told that Bonza has finished,” he told the ABC.

“They’ve been told that they’re not flying until further notice.

“They’ve all been told that the bottom line is that Bonza will no longer be flying.

“They’re pretty devastated. It’s their job. She’s been in it from day one. It’s a bit of a blow for Maroochydore and the Sunshine Coast.”

Federal transport minister Catherine King has been made aware of the mass cancellations.

“I have spoken to Qantas and Virgin CEOs this morning and both airlines stand ready to assist stranded passengers needing to get home,” she said.

“My department has reached out to Bonza and our expectation is that they keep passengers informed of their options and their consumer rights.”

Both Qantas, Jetstar and Virgin Australia has said it will offer free seats to stranded passengers where available, and will welcome Bonza employees discussing job opportunities.

Know more about this story? Email vanessa.brown@news.com.au

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