Thousands stranded as Australian airline goes bust
Australia: Budget carrier Air Australia collapsed yesterday,
stranding thousands of passengers as its domestic flights and
international services to Honolulu, Bali and Phuket were all grounded.
The news came a day after embattled Australian flagcarrier Qantas
said it was slashing at least 500 jobs, cutting costs and closing two
international routes after posting an 83 percent slump in first-half net
profits. In a statement, the Brisbane-based Air Australia, whose 300
staff have been stood down, said it had appointed KordaMentha as
voluntary administrators.
“In the short-term, the fleet will be grounded. It currently appears
that there are no funds available to meet operational expenses so
flights will be suspended immediately,” the administrator said. “For
clarity, it also appears highly unlikely there will be any flights in
the short to medium term.”
Air Australia flew international routes to the Indonesian island of
Bali, Thai holiday paradise Phuket, and Hawaii, and domestically to
Brisbane, Melbourne, and Perth, Derby and Port Hedland in Western
Australia. Administrator Mark Korda said up to 4,000 passengers were
currently overseas with Air Australia return tickets and advised them to
find alternative arrangements.
He told ABC radio the airline was unable to buy fuel at Phuket
International Airport on Thursday night, prompting fears about the
airline's solvency. AFP |