The documentation states that Richard Albarran, Kathleen Vouris, Brent Kijurina and Cameron Shaw from accounting firm Hall Chadwick have been appointed as external administrators.

This means there is an opportunity for the director or a third party to rescue Bonza, or for the company to be restructured.

The airline is yet to provide an update beyond a statement this morning apologising to customers.

The company said " we're working as quickly as possible to determine a way forward that ensures there is ongoing competition in the Australian domestic aviation market."

Queensland's tourism minister waiting on details from airline:

Queensland's Tourism Minister Michael Healy says the reports about the airline's commercial viability are a concern.

"Our immediate concerns are with stranded passengers and ticket holders who are impacted by the current situation with Bonza," he says.

"We recognise how important healthy competition in the aviation sector is to not just tourism, but the broader economy.

"We await further details from the business."

Earlier embattled regional airline Bonza had cancelled all flights across the countr, stranding potentially thousands of passengers as it considers its future.

Early Bonza flights in and out of its base on Queensland's Sunshine Coast, along with Melbourne legs to Rockhampton, Gladstone and Tamworth, were all cancelled this morning.

Bonza CEO Tim Jordan (Above) released a statement just after 8am saying all services would be "Temporarily suspended".

He said discussions were being had about the ongoing viability of the business.

Mr Jordan apologised to customers, saying Bonza was trying to find a way to keep flying.

Bonza's financial position has been the subject of intense speculation since its first flight early last year.

Passengers stranded:

Rona Wall caught a shuttle bus to the Sunshine Coast airport early this morning hoping to catch a flight to Rockhampton, after her scheduled Bonza flight from the Gold Coast was cancelled yesterday.

She said she received multiple correspondences from Bonza about a rescheduled flight, which created a lot of confusion.

"I've got a text message that was in my younger daughter's name, and an email, and also [a message] on the app," Ms Wall said.

"All three notifications were for three different flights."

Nicole Morris was due to fly from Melbourne to Rockhampton today with Bonza but was told her flight had been cancelled when she arrived at the airport.

"It's crap, I don't know what I'm meant to do," Ms Morris said.

"I've come in and I can't find anyone to talk to — there's nobody here."

Bonza said affected passengers had been told they would receive a full refund.

The federal Transport Department has set up a hotline for stranded passengers on the number 1800 069 244, which will operate until 10pm.

Virgin Australia, Qantas and Jetstar have offered complimentary seats, where available, on their flights to affected passengers.

'They were told Bonza has finished'

A Sunshine Coast man whose wife works for the airline told the ABC about 20 cabin crew were called into a meeting early this morning.

"There were two crews there — they were just basically told that Bonza has finished," he said.

"They've been told that they're not flying until further notice.

"They've all been told that the bottom line is that Bonza will no longer be flying."

He said the news was a blow for staff and the region.

"They're pretty devastated. It's their job. She's been in it from day one. It's a bit of a blow for Maroochydore and the Sunshine Coast," he said.

History of cancellations:

After months of delay, Bonza was given the go-ahead to start flying regional routes from the Sunshine Coast in January last year.

It was the first new local airline since Tiger Airways launched 15 years earlier, and its business model aimed to link regional centres often ignored by the larger carriers.

The company launched a base in Melbourne two months later.

Since launching, Bonza has faced criticism for cancelling flights, including mass cancellations over Christmas, and suspending routes.

A spokeswoman for Bonza last week, when the company cut services from the Gold Coast, said it was working on improving customer service due to passenger complaints.

Bonza declined to answer questions about today's cancellations, or provide advice to customers affected.

'Devastating' for regional tourism:

Bundaberg Tourism chief executive Katherine Reid said the news was devastating.

"We believe that the Melbourne to Bundaberg route has been one of the strongest performing in the state for Bonza, sitting at an average of 90% capacity," she said.

Ms Reid said that equated to as many as 400 people a week coming from Victoria into the Wide Bay region.

"We know a lot of people have had holidays booked," she said.

"We need to continue working with all levels of government to really attract airline partners into regional areas."

Call for bailout:

Nationals MP Barnaby Joyce said he hoped the airline could "see their way out of" the situation but said the federal government could be doing more to help.

He wanted the government to consider a bailout package.

"Certainly consider it ... on the premise of a better market outcome for all passengers not just helping out one company," he said.

North West Queensland MP Robbie Katter said Bonza's struggles were a symptom of a bigger issue in the industry.

"It's disappointing because we need this competition," the Traegar MP said. 

"The bigger guys will always make it as difficult as possible for airlines to enter the market and destroy the dominance they've got.

"I'll plan to push the government to underwrite these funds so that bush residents aren't left worse off."

'Burning money:

Aviation analyst Geoffrey Thomas, the editor-in-chief of the website Airline Ratings, said he understood the airline's backers, 777 partners, had made changes to the leasing and financing of its aircraft.

He said the budget carrier may have been caught off guard.

777 Partners has been contacted for comment.

"It's shattering news, particularly for those affected who hold tickets and were going to fly today or tomorrow," Mr Thomas said.

"I think that the problem of Bonza is overseas, with leasing companies, and not the local management, not the business model."

But he said the low profit margin model could be tough in regional Australia, given long distances and relatively low passenger numbers.

"If you need 85% capacity and you only get 70% … then you're burning money," he said.

Original Story By | Owen Jacques and Amy Sheehan