Town hall termination: Hundreds of Bonza staff lose their jobs

Hundreds of employees of beleaguered budget airline Bonza have been given the news that their employment has been terminated.

Workers had been stood down since April, when the airline went into administration after its fleet of Boeing 737-8 planes were repossessed by lessors.

The company is yet to enter into liquidation after the Federal Court in May extended the deadline for Bonza to find a buyer until July 29.

Several parties had reportedly been interested in bailing out the cash-strapped airline, which went into administration with debts of about $110 million.

The news of the immediate termination came during a town hall meeting with all staff as the company continues to grapple with voluntary administration and its uncertain future.

The terminated employees are currently ineligible for federal government entitlements for unpaid wages, as the airline is still in voluntary administration.

Administrators had hoped to find a potential buyer for the troubled airlines, setting a deadline of last Friday for offers.

As yet, no offers have been received

Hall Chadwick maintains that there remains a possibility for an offer to emerge, leaving a sliver of hope for the company’s revival.

Creditors were told at their first meeting that the airline owed nearly $77 million across two loans, almost $16 million to trade creditors and another $10 million to landlords.

Other debts include more than $5 million owed in staff wages and annual leave entitlements and $3 million to government authorities such as the Australian Taxation Office.

With AAP