RIP Bonza
Fundraiser page for Bonza Cabin Crew.
https://www.gofundme.com/f/support-b...crew-in-crisis
AFAIK they haven't been able to access Centrelink payments because they haven't lost their jobs, just 'stood down'.
https://www.gofundme.com/f/support-b...crew-in-crisis
AFAIK they haven't been able to access Centrelink payments because they haven't lost their jobs, just 'stood down'.
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Not quite, the Aircraft have been with AIP from day dot, with AIP being almost 50:50 owned by management and 777partners. On April 9 a new entity called phoenix aviation capital (interesting name) took over the 777 partners share. Phoenix is owned 100% by a U.S-based insurance and financial services holding company with approximately $11 billion of assets under management.
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777 partners, a company co founded by a convicted drug trafficker, you just couldn't make this 5hit up
Link to yesterday's update from the Administrator.
https://www.flybonza.com/media/volun...pdate-7may2024
I wonder if Hall Chadwick has any experience with international aircraft leasing and repossessions. I found the wording quaint.
https://www.flybonza.com/media/volun...pdate-7may2024
I wonder if Hall Chadwick has any experience with international aircraft leasing and repossessions. I found the wording quaint.
The lease termination documents got signed prior to entering administration, nothing the administrators can do on that front. Some have tried, it can be a very costly and lengthy legal process, unlikely the administrator has the funds to stomach that.
Bonza Management was second fiddle here. It was never going to enter administration with the leases still active. The strings are being pulled from the other side of pacific now. It’s all over for local decision making.
Airports have form in dropping concrete blocks and farm equipment in front of aircraft due to unpaid bills. The tractor parked in front of one of these aircraft reeks of that occurring here. No idea what the legal is on that, I am sure someone can fill us in. I assume another court date to get the local councils to move the tractor away from my aircraft as it’s starting ops with a polish client of ours next week…comes to mind.
Bonza Management was second fiddle here. It was never going to enter administration with the leases still active. The strings are being pulled from the other side of pacific now. It’s all over for local decision making.
Airports have form in dropping concrete blocks and farm equipment in front of aircraft due to unpaid bills. The tractor parked in front of one of these aircraft reeks of that occurring here. No idea what the legal is on that, I am sure someone can fill us in. I assume another court date to get the local councils to move the tractor away from my aircraft as it’s starting ops with a polish client of ours next week…comes to mind.
Last edited by nomess; 8th May 2024 at 09:18.
Airports have form in dropping concrete blocks and farm equipment in front of aircraft due to unpaid bills. The tractor parked in front of one of these aircraft reeks of that occurring here. No idea what the legal is on that, I am sure someone can fill us in. I assume another court date to get the local councils to move the tractor away from my aircraft as it’s starting ops with a polish client of ours next week…comes to mind.
Last edited by 43Inches; 8th May 2024 at 11:13.
You certainly cannot do that in Queensland. If your property is appropriated sign-posted, you can arrange for the vehicle to be towed but you cannot detain or immobilise the vehicle pending towing.
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Citi’s Bonza links emerge in emails showing overdue invoices
Ayesha de KretserSenior reporter
May 8, 2024 – 12.25pm
Citi is among lenders with exposure to Bonza’s aircraft lessors and its struggling Miami private equity owner 777 Partners, with leaked emails showing the Wall Street investment banking giant nervous about payments.
The Australian Financial Review reported on Monday that 777, its main financier, A-Cap, and the aircraft lessors AIP Capital appeared to be co-ordinating decision-making about Bonza, the low-cost carrier which only began flying early last year.
AIP was 49 per cent owned by 777 – the private equity firm that controls Genoa and Melbourne Victory football clubs and was trying to buy the English Premier League club Everton – with the balance held by its executives, including former Goldman Sachs banker Jared Ailstock.
In a March restructure, 777’s ownership moved to A-Cap, a major New York-based insurer, which has been accused by other investors of controlling the private equity group despite a purported arms-length relationship.
Emails from Mr Ailstock to A-Cap executive chairman Kenneth King, obtained by the Financial Review, show discussions about paying back Citi and another lender, Ashland Place Finance, which specialises in the aviation sector.
“This will calm Ashland down and gets Citi one of their rents. We’ll need to revisit next week to keep them calm, but this should help,” Mr Ailstock wrote in March of payments due on three aircraft operated by Bonza.
Until February, Bonza’s lease payments to AIP had been supported by Bonza, which was itself sourcing the funds from A-Cap. That month, A-Cap was ordered to cut its exposure to 777 to protect its customers. The Financial Times reported then that $US2.9 billion ($4.4 billion) of A-Cap’s $US11.5 billion in assets was invested in 777-related entities.
One source said A-Cap had soured on aviation investments as far back as July last year, when it put pressure on 777 to find buyers for Bonza.
Mr Ailstock has a colourful history in the United States. He was barred by the Financial Industry Regulatory Authority in 2019 after failing to co-operate with an investigation into the misuse of his expense reimbursements.
He did not admit to or deny the findings of the investigation.
Despite Mr Ailstock’s history, a Citi spokesman said the bank had “completed its due diligence and [know-your-customer check] as it does for every client”.
Sources close to the discussions between Bonza, 777 and AIP, speaking on condition of anonymity, said Citi had financed two aircraft – including Shazza, which Mr Ailstock mentioned in his email to Mr King – and was due about $US600,000 per month.
Shazza is no longer registered to Bonza, and is expected to be flown overseas.
A spokeswoman for Ashland declined to comment.
Hall Chadwick were appointed administrators at Bonza after the carrier’s aircraft were seized on April 30. The company has more than 60,000 creditors, almost all customers who were not repaid after the airline cancelled their bookings.
Ayesha de KretserSenior reporter
May 8, 2024 – 12.25pm
Citi is among lenders with exposure to Bonza’s aircraft lessors and its struggling Miami private equity owner 777 Partners, with leaked emails showing the Wall Street investment banking giant nervous about payments.
The Australian Financial Review reported on Monday that 777, its main financier, A-Cap, and the aircraft lessors AIP Capital appeared to be co-ordinating decision-making about Bonza, the low-cost carrier which only began flying early last year.
AIP was 49 per cent owned by 777 – the private equity firm that controls Genoa and Melbourne Victory football clubs and was trying to buy the English Premier League club Everton – with the balance held by its executives, including former Goldman Sachs banker Jared Ailstock.
In a March restructure, 777’s ownership moved to A-Cap, a major New York-based insurer, which has been accused by other investors of controlling the private equity group despite a purported arms-length relationship.
Emails from Mr Ailstock to A-Cap executive chairman Kenneth King, obtained by the Financial Review, show discussions about paying back Citi and another lender, Ashland Place Finance, which specialises in the aviation sector.
“This will calm Ashland down and gets Citi one of their rents. We’ll need to revisit next week to keep them calm, but this should help,” Mr Ailstock wrote in March of payments due on three aircraft operated by Bonza.
Until February, Bonza’s lease payments to AIP had been supported by Bonza, which was itself sourcing the funds from A-Cap. That month, A-Cap was ordered to cut its exposure to 777 to protect its customers. The Financial Times reported then that $US2.9 billion ($4.4 billion) of A-Cap’s $US11.5 billion in assets was invested in 777-related entities.
One source said A-Cap had soured on aviation investments as far back as July last year, when it put pressure on 777 to find buyers for Bonza.
Mr Ailstock has a colourful history in the United States. He was barred by the Financial Industry Regulatory Authority in 2019 after failing to co-operate with an investigation into the misuse of his expense reimbursements.
He did not admit to or deny the findings of the investigation.
Despite Mr Ailstock’s history, a Citi spokesman said the bank had “completed its due diligence and [know-your-customer check] as it does for every client”.
Sources close to the discussions between Bonza, 777 and AIP, speaking on condition of anonymity, said Citi had financed two aircraft – including Shazza, which Mr Ailstock mentioned in his email to Mr King – and was due about $US600,000 per month.
Shazza is no longer registered to Bonza, and is expected to be flown overseas.
A spokeswoman for Ashland declined to comment.
Hall Chadwick were appointed administrators at Bonza after the carrier’s aircraft were seized on April 30. The company has more than 60,000 creditors, almost all customers who were not repaid after the airline cancelled their bookings.
I did originally mention clamping, but the rules changed in many states around 2020 regarding that, now it's illegal in all states. However there's nothing that can be done if someone parks on your land, and you suddenly need to do some gardening, and a pile of dirt/gravel appears behind said vehicle. Or you park your car behind theirs and then go on holiday, have a week long bender where you cant drive, lose your keys, and so on. You are not allowed to tamper with their private things, but the same in reverse.
Last edited by 43Inches; 8th May 2024 at 22:38.
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Flight Radar 24 just showed C-FLHI take off from Sunshine Coast (MCY) with destination as Honolulu (HNL). Flair Airlines flight number FLE903.
All aircraft will depart as the court has ruled against airports given the debts racked up were not by the aircraft owner but by Bonza. Just told by administrator that there are no real assets to sell to recover cash apart from some “pencils and other office stuff”. Everything else was leased or provided by the support contractors so it belongs to them…
Big debts however
Big debts however
It was never going to end any other way. Dreamers and conmen have always been attracted to the industry.
Off topic maybe but I see an earlier post on this thread that suggested Tiger was a subsidiary of Virgin Blue or Virgin something, any truth to that. I understood they were a subsidiary Singapore.
Off topic maybe but I see an earlier post on this thread that suggested Tiger was a subsidiary of Virgin Blue or Virgin something, any truth to that. I understood they were a subsidiary Singapore.
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It was never going to end any other way. Dreamers and conmen have always been attracted to the industry.
Off topic maybe but I see an earlier post on this thread that suggested Tiger was a subsidiary of Virgin Blue or Virgin something, any truth to that. I understood they were a subsidiary Singapore.
Off topic maybe but I see an earlier post on this thread that suggested Tiger was a subsidiary of Virgin Blue or Virgin something, any truth to that. I understood they were a subsidiary Singapore.
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How much?
I ran some numbers on this a few months ago and was quite alarmed by what was going on. When airport and government data started coming out after they cycled the first year, it became very clear that some severe cash burn was going on.
$150-$200m here wouldn’t surprise me, above what I forecasted, but I think the numbers here had been much worse vs what they made out. Anything above those numbers, well I have no words. It’s clear bookings fell off a cliff the minute that Korda Mentha rumour surfaced, very disturbingly low amount of forward bookings in the system would indicate people simply stopped booking.
I ran some numbers on this a few months ago and was quite alarmed by what was going on. When airport and government data started coming out after they cycled the first year, it became very clear that some severe cash burn was going on.
$150-$200m here wouldn’t surprise me, above what I forecasted, but I think the numbers here had been much worse vs what they made out. Anything above those numbers, well I have no words. It’s clear bookings fell off a cliff the minute that Korda Mentha rumour surfaced, very disturbingly low amount of forward bookings in the system would indicate people simply stopped booking.
Last edited by nomess; 9th May 2024 at 08:51.