Fasten your seatbelts: estimated arrival time for Bonza bill revealed (2024)

Albury ratepayers should learn before the end of the year how much the collapse of budget airline Bonza cost the city.

Albury mayor Kylie King told The Border Mail the final figure could become clear by October once liquidators have finalised their report into the failed airline.

"I am advised by the executive team that the process is to await the release of the liquidator's report, after which the financial impacts of Bonza's liquidation will be reflected and made publicly available in an upcoming quarterly budget review," Cr King said on Wednesday, July 31.

Cr King's revelation comes after Albury Council was accused of "ignoring their ratepayers and not being transparent" in failing to disclose how much the collapse of Bonza would cost.

Earlier this month, creditors voted to liquidate the embattled airline with more than $110 million believed to be owed to creditors, workers, landlords and the tax office.

The Border Mail contacted the council's media team on Tuesday, July 30, in the wake of Rex Airlines' trading halt, to ask whether Bonza's permanent grounding had resulted in a financial hit for Albury.

A council spokesperson said it remained "commercial in confidence".

Former Albury mayor Kevin Mack, who will stand at the September election, said ratepayers were "entitled to know" how costly the airline's demise had been.

It comes after Mr Mack told The Border Mail earlier this month his decision to re-enter politics was driven by a perceived lack of transparency, accountability, and engagement between the current councillors and the Albury community.

"Given the issues associated with expenditure of public monies, I am concerned about the lack of transparency regarding the Bonza debt to council," Mr Mack said on July 30.

"Albury ratepayers are the shareholders of the company and are entitled to know.

"The 'commercial in confidence' mantra is just that.

"(This is another example of) council repeatedly ignoring their ratepayers and not being transparent."

Creditors voted to wind Bonza up at a meeting on July 2 with administrators Hall Chadwick, after failing to secure a buyer.

It was estimated Bonza owed more than $110 million to creditors, landlords, staff and the tax office.

Hall Chadwick's Richard Albarran, Kathleen Vouris, Brent Kijurina and Cameron Shaw were appointed as Bonza's liquidators.

They will continue their investigation into the carrier's business and report findings to the Australian Securities and Investment Commission, before considering future action and potential claims for the benefit of creditors.

The council recouped only a small amount of money of that debt.

"I would be absolutely seething if this is the third time this is going to happen," Mr King said at the time.

On the same day, Cr King touched on the council's financial ties to Bonza.

"We will actively engage with the administrators and are seeking legal advice in relation to the recovery of any outstanding funds owed to Albury City. Until such time as we have worked through this process, details of any funds owed will remain confidential," Cr King said on April 30.