Bonza brings in KordaMentha to review operations at the budget carrier

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Bonza brings in KordaMentha to review operations at the budget carrier
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Sources close to discussions said the corporate restructuring specialists had not been appointed as administrators, but to provide financial advice.

| Bonza has engaged corporate restructuring specialist KordaMentha as a financial adviser amid mounting pressure on the carrier’s Miami-based private equity backer., flying to regional destinations including Cairns, Rockhampton, Gladstone, Alice Springs and Albury. It is not flying to Sydney or Brisbane, although it has services to Melbourne.

Tim Jordan is the chief executive of Bonza. He said 777 invested in the airline because “they could see the opportunity”.It’s major financier, 777 Partners, has been under serious strain after its own creditors, including insurance group A-Cap, pushed to take control of various assets owned by the private equity group.

KordaMentha has not been appointed administrator but as financial adviser. Two sources not authorised to speak publicly about the matter said KordaMentha’s Sebastian Hams had been engaged only to review Bonza’s operations.There has been growing scepticism about Bonza’s operations after the airline grounded one of its planes at the Gold Coast.

Bonza had also wet-leased Boeing 737s from Nauru Airlines, which abruptly terminated the agreement on Monday, leaving travellers in Queensland stranded. Aircraft lessors based in Ireland have separately sued 777 over unpaid bills. Between them, Bonza and Regional Express, the domestic carrier better known as Rex, have 7 per cent of Australia’s domestic aviation market., placing a $100 million valuation on the airline. “Our differentiated strategy has captivated the imagination of individual customers, the community and also, potential investors,” Mr Jordan said at the time.is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors.

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