Australia’s newest budget airline suspended all its flights on Tuesday, the move has left thousands of passengers stranded around the country, forcing competitors to step in.

Bonza is the first carrier to launch in Australia in 16 years.

Dominated by two companies, aviation remains one of the nation’s “most concentrated industries” according to Australia’s consumer watchdog.

“We apologise to our customers who are impacted by this and we’re working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian aviation market,” the airline said in a statement.

Responding to the cancellations – which impacted departures across Queensland and Victoria – Australia’s Transport Department set up an emergency help hotline for passengers on Tuesday.

Qantas Group and Virgin Australia – which account for 95% of the nation’s domestic aviation market according to its airport authority – both also offered to step in and assist anyone stranded mid-journey.

Based in Queensland’s Sunshine Coast, Bonza launched in 2021, promising low-cost fares and improved regional connectivity via a suite of new destinations.

After a long-delay while it awaited regulatory approval – it finally took to the skies in 2023 but aircraft shortages and low patronage saw it slash several routes in quick succession.

Those setbacks, combined with its inability to secure access to take-off and landing spots in the lucrative Sydney market quickly sparked speculation over its future.

Bonza’s eight planes – a fleet of Boeing 737-Max – were repossessed by creditors on Tuesday according to local media, but the airline has not publicly addressed the claim.

Source: BBC