Australian budget domestic carrier Bonza has grounded all flights leaving passengers stranded.
The carrier confirmed that services had been “temporarily suspended” today (Tuesday).
Bonza added that “discussions are currently underway regarding the ongoing viability of the business”.
A statement added: “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 domestic aviation market.”
The airline, touted as Australian’s only independent low-cost carrier, has been flying for little more than a year after being established in Queensland in 2021 and operates 36 routes to more than 20 destinations.
Local media reported that its eight 186-seat Boeing 737 aircraft had been repossessed by creditors but the airline, which serves Queensland‚ New South Wales and Victoria‚ has declined to comment on the claim.
Qantas Group and Virgin Australia stepped in to offer alternative flights.
However, only six Bonza routes overlap with either Qantas-owned Jetstar or QantasLink.
Qantas said: “We understand today’s news about Bonza will have a significant impact on many people’s travel plans.
“For Bonza customers who are due to travel today or who are stuck away from home, Jetstar and Qantas will assist by providing flights at no cost where there are seats available.
“We’re continuing to monitor the situation and will provide updates of any additional support for Bonza customers.”
Bonza is backed by US private investment firm 777 Partners, which is seeking to take over Premier League side Everton.