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Administrators uncertain of Bonza’s liability for cancelled flights
Ahead of a meeting that will bring thousands of disgruntled Bonza customers together, administrators told a court they are uncertain how much the aviation company is liable for the cancelled flights.
Naomi Neilson
Given how fast things have moved since Hall Chadwick was appointed voluntary administrator of Bonza, counsel James Hutton SC said there is “still a degree of uncertainty” about whether the discount regional airline can meet existing contractual obligations.
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If it cannot, Bonza could be held liable to affected customers.
Hutton said the administrators also “have not had time to fully investigate” the termination of the leases around the time 777 Partners suddenly repossessed the six aircraft leased by the airline.
The submissions were made during Tuesday (7 May) morning’s Federal Court hearing to approve a creditor meeting with thousands of customers to discuss debt they are owed and possible next steps.
Hutton said it is predicted that 20,000 people will join this meeting, including the thousands who were left stranded by the abandoned flights and those who purchased tickets to future cancelled flights.
More than 64,000 people were invited to attend via an email, but only around 40,000 had opened it by Tuesday morning.
They were told Hall Chadwick had recorded them as contingent creditors “given the uncertainty associated with the ongoing trading status of the company and the ability to seek refunds”.
The court heard there will likely be an audio-visual meeting to accommodate such a large crowd, and there may be a moderated question-and-answer panel depending on the amount of interest.
There will also be an investigation into potential general proxies.
In the meantime, there are a number of legal issues up in the air.
One concerns the fate of the aircraft, five of which are grounded at Australian airports. The sixth has already left Australia.
Hutton said if 777 Partners moves forward with its plan to fly the aircraft out of Australia, the administrators are “not in a position” to bring an application to court to prevent that from happening.
Based on the administrator’s latest information, the aircraft could be moved out of Australia any time starting Tuesday.
