Bonza has entered voluntary administration, which could spell trouble for Tasmania just months after the carrier began flying to Launceston.
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Premier Jeremy Rockliff described the airline grounding flights on April 30 at short notice as "disappointing".
"It is disappointing, and quite rightly," Mr Rockliff said.
"There was huge excitement when the Bonza flights were launched. People have taken up the opportunity of that service.
"Ensuring that we support, through discussions with other airlines, those people that are immediately affected is important.
"But more broadly we need to ensure that we work with all airlines, and ensure that we support as many people as we can visiting Tasmania. Our visitor economy is so crucial to the Tasmanian economy."
Shadow Treasurer Josh Willie said the debacle added to Tasmania's economic woes.
"The mass cancellation of Bonza flights into Tasmania is another blow for the state's flatlining economy and will cost jobs," Mr Willie said.
"When the flights were first announced they were promoted by the government as delivering 29,000 additional seats into Launceston every year.
"With these flights and the economic contribution they bring drying up, the need for more plans to stimulate the economy has become even greater or Tasmania will head closer to economic disaster."
The airline had a rocky start after it started flying to Launceston in November 2023, with flights cancelled due to delays in getting aircraft certified by aviation authorities.
Bonza then trumpeted the start of its Sunshine Coast - Launceston route, which began flying twice per week in March 2024.
On April 24, a Bonza spokesperson said the airline planned to reduce its service frequency on the Launceston - Gold Coast route from May 1 in an attempt to "right size supply with demand".
Then, on Tuesday, April 30 Bonza chief executive officer Tim Jordan abruptly announced a "temporary suspension" of its services.
Later that day the airline announced it was appointing administrators.
Jacob Donnelly of Murwillumbah in NSW was one of several people caught up in the chaos after his flight from Launceston was cancelled.
With no other Bonza flight available until Saturday, the 20-year-old paid an additional $350 for a Virgin flight which also meant a stopover of nearly four hours in Melbourne.
"It's a major hassle because I've got appointments back home," he said.
"If I waited for the next Bonza flight, I would have missed my mum's 50th birthday.
"I won't be booking with them again because it looks like they might be going under."
Mr Donnelly said his flight was changed three times before being cancelled.
"Originally it was 10.25am, then yesterday it was moved to 9.25, then back to 10.25 and when I checked this morning it was back to 9.25. It's just ridiculous," he said.
Launceston Airport has advised Bonza passengers to check the airline's website for any updates about their flights.
The federal government has set up a hotline for stranded passengers on 1800 069 244.