Bonza Airline Discussion

[justinbrett]

Depending on the situation, the Cape Town Convention (and associated protocol for aircraft) may apply: Cape Town Convention

The aircraft are leased not mortgaged so they are not assets, they are liabilities.

 

[Quickstatus]

greedy major airports

.

It is clear that airport charges are not the reason they folded. But if airport charges were the reason, then their business is not viable.

Airports operate monopolistically and it's an ongoing public discussion regarding their power.

Many like me were skeptical when they first started and it appears they didn't have much of a balance sheet.

 

[Harrison_133]

Staff haven't been paid for hours worked in April yet (usually paid on the 5th of each month), and have been told by administrators that at this stage they won't be paid for April.

Article also talks of how staff who resign and move to another company have their chances of receiving their April wages reduced. Those who remain employed while stood down might have a chance of getting their entitlements, if Bonza is in a financial position to do so.

Also mentions how staff noticed Bonza "tightening the strings" recently by getting rid of crew meals, or limiting them to one bottle of water.

https://www.news.com.au/travel/travel-advice/flights/crushing-blow-to-staff-during-late-night-meeting/news-story/a2a07e10db17e91346ce5dc4955246cf

 

[MEL_Traveller]

The aircraft are leased not mortgaged so they are not assets, they are liabilities.

Good point, but it appears the convention and protocol deal with interests in an object (in this case the plane). Article 2(c) - covers lessors in a leasing agreement, and 7(b) - an object a lessor has the power to dispose of.

Dunno the specifics of how this is arranged in the case of Bonza, but if there was a default under the lease, the lessor might be able to take direct control of the asset.

 

[Daver6]

Not exactly surprising, but sucks for those impacted

Bonza staff 'screaming and crying' after being told they won't be paid for April

Employees say they have been told to seek emergency payments from Centrelink as the troubled airline can't afford to pay them.

www.abc.net.au

 

[jakeseven7]

This was on my Facebook feed, they are literally blocking the whole aircraft now.

But who is doing this? If the lessor has repossessed them? Why do they need to block them off? What’s the airline going to do? Fly them off somewhere? They are not Bonza’s. What the heck is Bonza doing to do with them? Worried the administrator will take them perhaps?

Or is this MCY airport doing this due unpaid bills?

View attachment 383208

Maybe learning from the rocket scientists who run Perth Airport - they blocked multiple VA aircraft when they weren’t paying their bills on time…

 

[3018]

Not exactly surprising, but sucks for those impacted

Bonza staff 'screaming and crying' after being told they won't be paid for April

Employees say they have been told to seek emergency payments from Centrelink as the troubled airline can't afford to pay them.

www.abc.net.au

Wait, so it's hourly staff who get paid once a month... in arrears? Is that normal in Australian corporate world for shiftworkers? That sounds... awful.

 

[codash1099]

In lighter vein:

Grounded Bonza Airlines Still Somehow Delivering Better Service Than Qantas — The Shovel

“Sure, my flight didn’t go ahead, but on the plus side my luggage isn’t damaged"

theshovel.com.au

 

[FruitySnack]

Staff haven't been paid for hours worked in April yet (usually paid on the 5th of each month), and have been told by administrators that at this stage they won't be paid for April.

Article also talks of how staff who resign and move to another company have their chances of receiving their April wages reduced. Those who remain employed while stood down might have a chance of getting their entitlements, if Bonza is in a financial position to do so.

Also mentions how staff noticed Bonza "tightening the strings" recently by getting rid of crew meals, or limiting them to one bottle of water.

https://www.news.com.au/travel/travel-advice/flights/crushing-blow-to-staff-during-late-night-meeting/news-story/a2a07e10db17e91346ce5dc4955246cf

Really shocking stuff. Luckily staff other than operating crew have at least been paid for April as their pay cycles are different. Terrible for those who miss out though.

 

[Mr H]

The aircraft are leased not mortgaged so they are not assets, they are liabilities.

Surely they are both assets and liabilities - that balance each other perfectly.

 

[Mattg]

In lighter vein:

Grounded Bonza Airlines Still Somehow Delivering Better Service Than Qantas — The Shovel

“Sure, my flight didn’t go ahead, but on the plus side my luggage isn’t damaged"

theshovel.com.au

And from Betoota:

Government Leaves Bonza To Rot After Airline Fails To Offer Single Politician Free Lounge Access

WENDELL HUSSEY | Cadet | CONTACT The nation is this week mulling over yet another failed attempt at breaking into the aviation market. Like many before them, an overseas backed airline by the name of Bonza yesterday revealed that they’ve done their cough. The newest kid on the air traffic...

www.betootaadvocate.com

 

[justinbrett]

Surely they are both assets and liabilities - that balance each other perfectly.

Well, in so much as a rental car is an asset when you rent it. Which is not at all.

My point is there’s no claim for ownership by Bonza or the administrators, and as the convention says the lessor can take it back once they have defaulted on the lease.

 

[tcasfail]

I guess if you think about it, engineering is probably the one part that they would pay on time, if that area starts to slip, they are at risk of CASA start walking in asking questions and issue notices, as seen with Tiger.

Engineering bloke might have been paid on time, but airports, fuel, leases, ground ops, and so on, unlikely.

There was a rumour earlier this year that AVCRO (the engineers) were owed quite a bit of money… interesting

 

[Saab34]

One for the Pilots, is monthly salary payments the norm across the industry?

 

[tcasfail]

One for the Pilots, is monthly salary payments the norm across the industry?

Yep

 

[Mr H]

One for the Pilots, is monthly salary payments the norm across the industry?

I'm guessing the pilots are not the ones likely to be in financial trouble and unable to find new work.

 

[jb747]

One for the Pilots, is monthly salary payments the norm across the industry?

QF is fortnightly. It was monthly, but changed about 30 years ago.

I'm guessing the pilots are not the ones likely to be in financial trouble and unable to find new work.

One for AV, but my understanding is that quite a few are VA1, and may actually have some rights to return.

 

[Quickstatus]

The pile on (if any) is justified if the staff don't get paid. Always pay the staff FIRST

 

[Saab34]

One for AV, but my understanding is that quite a few are VA1, and may actually have some rights to return.

According to LinkedIn, it appears quite a large chunk it seems.

Seems to be many 737 Pilot ads on seek looking for Pilots.

 

[N860CR]

I'm guessing the pilots are not the ones likely to be in financial trouble and unable to find new work.

I’d probably say the opposite. Plenty already lost their jobs when virgin tanked, now they’re unemployed (and haven’t been paid for their last month) with zero chance of getting a base in their home city and searching for jobs that have an extremely long and arduous recruitment process.

The cabin crew, ground staff etc can easily transition into unrelated roles immediately.