Bonza is "unlikely" to get back off the ground, the transport minister has conceded, as voluntary administrators have been appointed in an attempt to rescue the airline.
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Travellers were left stranded in airports across Australia on Tuesday, with Albury-Wodonga passengers among those caught in the chaos, following urgent talks about the future of the airline.
Federal Transport Minister Catherine King said a hotline had been set up for affected passengers but admitted the chances of Bonza resuming operations was small.
"We have been speaking to the (administrators) overnight, they're trying to get the airline back up and running, I think they have got to look at the books a fair bit. It's unlikely that will happen," she told ABC TV.
"Planes are certainly cancelled until May 2 at the very least, and then customers will need to get on to the Bonza website or on to the administrators to find out what the next steps are."
'We were pretty lucky in a way'
Border sporting identities Bob Craig and Mick Spiteri were among those to have plans derailed by Bonza's misfortune.
The avid golfers are due to play in the Handiskins National Championships at Palm Meadows starting on Thursday, having qualified at Wodonga late last year.
Craig, an Ovens and Murray coaching legend, and Spiteri, a former Belvoir cricketer, embarked on a 16-hour drive to the Gold Coast once it became clear on Tuesday that their flight booked for Wednesday, May 1, wouldn't be going ahead.
"When the news broke we were like Steve Martin and John Candy in Planes, Trains and Automobiles," Spiteri said.
"We were looking at all the different timetables but in the end we said, stuff it, we'll drive.
"We made a call at 4pm on Tuesday, Bob said I'm up for it if you are, we left Albury at 5.35pm and rolled into the Mercure Resort on the Gold Coast at 9.27am on Wednesday.
"We shared the driving and both got some sleep in the passenger seat and in the end we've arrived here two hours before we were due to fly out of Albury.
"The drive home on Sunday won't be as quick, I can assure you."
Both Spiteri and Craig had flown with Bonza on multiple occasions and were disappointed by news of its demise.
"We were pretty lucky in a way that it happened yesterday, because if they'd gone bust today, we would've been battling to get up here," Spiteri said.
"Neither of us had been able to fault them on previous occasions.
"But it sounds like Bonza is similar to Fitzroy in 1996, they're not coming back from this."
'It needs close and careful examination'
The company has appointed external administrators Hall Chadwick, who say the move will allow "an independent insolvency practitioner to take control of the company", during which creditors' claims will be put on hold.
Farrer MP Sussan Ley said the potential collapse of Bonza was "devastating for rural and regional Australians".
"I hope that city-based politicians who actually don't understand how important it is to have flights to and from the regions, don't step back on this one and say 'there's nothing we can do to help'," she told the ABC.
"It needs close and careful examination. I don't know the circumstances of exactly where the financials and the issues were with Bonza. That again is something that the administrator will examine.
"But I do want to see this government doing everything it can to get Bonza back in the air and to recognise that competition in the aviation sector and access to regional routes in regional Australia must be top of the list when they consider airline policy."
Albury mayor Kylie King said she was "extremely disappointed" at news of Bonza entering voluntary administration and expressed empathy to affected passengers.
"The service that Bonza has provided since its launch in January 2023 has supported significant numbers of visitors to our region and provided the opportunity for locals to travel more frequently to Queensland's Sunshine and Gold coasts," Cr King said.
"Feedback from our community has been overwhelmingly positive and they have appreciated our collaboration with Bonza to enable services to be provided from our region.
"The airline business is not without its challenges.
"Like many airport operators across the country, we have had to ride the ups and downs experienced by airline operators to ensure that connectivity to and from our region meets the needs of our community and economy."
Bonza chief executive Tim Jordan apologised to customers and said the company's ongoing viability was being discussed.
"We're working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market," he said.
The Australian government has established a hotline to support passengers affected by cancelled Bonza flights: 1800 069 244.