Originally Posted by
43Inches
To play devils advocate, all the issues surrounding 777 partners and their woes have all just surfaced, we have no idea what the management team at Bonza were being told, cold be that everything was rosy and just hold course and we'll bankroll it. Although it was pretty ominous when the Flair aircraft were taken back.
Sure. But Bonza didn’t manage its own cash well. How long was the initial injection meant to last?
The Flair wet lease agreement has likely sent this to the wall a year early, purely because they just burnt whatever cash they had on it. Bizarre decision and clearly nobody ran any numbers on it. Even at full blown loads, I still can’t get it in the green.
Running some average numbers, and what we know in regards to numbers reported to industry, total cost appears to be circa $20m for those two aircraft for the 4 months, which ended up only earning revenue for 2.5 months. It looks like that little project has put a considerable hole in whatever cash they had, considering revenue doesn’t even cover half of that.
I think everyone is underestimating how much this has burnt. I don’t think much forward revenue is even left. 777 Partners has moved on Bonza Management it seems, likely trying to secure whatever revenue remains as it becomes a secured creditor.