Australian ultra low cost carrier Bonza has ”temporarily” suspended flights, a little over a year after launching operations.
Continue reading: Australia’s Bonza Cancels Flights As Planes Repossessed
Share your questions, experiences, and thoughts below.
2 thoughts:
1. Did someone force a gun to their heads to accept the 18% interest rates?
2. How are planes repossessed? Do they just sneak in the airport at night and fly it away?
Typical ULCC that thinks all there is to running an airline is offering dirt cheap fares then reality takes over.
Ok I did some more research into the first one: I found some people saying online that Bonza is majority owned by 777. That's pretty gross
I’d be curious if the planes that were reposesssd were those that were subleased from Flair or ones they’d leased directly.
Flair and Bonza had a strategy of shifting aircraft based on different demand profiles in the northern vs southern hemisphere
An airlline that lasted 15 months in operation. They must not have had much money backing them up. Seems a poor business plan for a startup
How are planes repossessed?
Depends on the type. In smaller aircraft, it's not much different than with cars/boats/etc. Companies like Sage Popovich specialize in such.
In larger/commercial aircraft, it's usually a matter of injunctive action. Lessors and lenders write the terms into the contract, and they're generally straightforward:
"If you owe us $XX beyond YY amount of time, then we the lender will seek immediate injunctive relief, and the last place the aircraft lands is where it will remain until we decide otherwise."
Do they just sneak in the airport at night and fly it away?
No. Again, it differs by the type of aircraft:
Smaller ones, may have locks/devices put on them, until an independently designated MRO provider can certify that it's in sufficient condition to be flown elsewhere.
In commercial aircraft, the maintenance log is seized and reviewed, prior to a decision on operation; though most lenders will demand an MRO review as well, just to CYA.