In a recent turn of events that underscores the volatile nature of the airline industry, Bonza, an airline that plunged into voluntary administration on April 30, officially dismissed its workforce. This action came months after the company’s operational collapse, during which the airline’s aircraft were abruptly repossessed and all flights halted.
On Tuesday, at 10 am, the beleaguered employees were convened in an online meeting where the company administrators announced the immediate termination of jobs for all 323 staff members. This decision marks the end of the road for the airline’s operational staff, following a prolonged period of uncertainty that left employees without pay for two months.
The meeting, which started 15 minutes late, was attended by approximately 200 staff members along with a visibly exhausted former CEO, Tim Jordan, who refrained from speaking, reportedly due to a gag order. The delay in commencement was criticized by an employee who branded it as “very disrespectful,” highlighting the frustration over the handling of the situation.
The conversation during the meeting was charged, with employees expressing their dissatisfaction with what they described as “horrendous communication.” Many were dismayed that their most reliable updates on the situation were being relayed through media outlets rather than direct communication from the administrators.
During this tumultuous period, the administrators, Hall Chadwick, faced criticism for their high consulting fees, reportedly charging up to $1,000 per hour, and for setting multiple “final” deadlines for potential buyers that yielded no tangible outcomes. Despite the absence of offers by the latest deadline last Friday, Hall Chadwick has suggested that the acquisition of Bonza remains a faint possibility.
In a statement addressing the layoffs, Hall Chadwick noted, “While this is not the news stakeholders wish to hear, the administrators must make a decision with respect to the standdown of the employees.”
As the dust settles on this corporate collapse, the future remains uncertain for the former employees and stakeholders involved, leaving many to ponder the real cost of business failures in such a high-stakes industry.
More at ABC News Australia