Air Australia appoints KordaMentha as voluntary administrators
Despite claims yesterday that it was “business as usual”, Air Australia has this morning confirmed the appointment of administrators, with the carrier’s fleet grounded effective immediately.
“It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately,” according to a statement on the airline’s website.
The administrators, KordaMentha, add that “it also appears highly unlikely there will be any flights in the short to medium term,” and advised passengers to make alternate travel arrangements.
Travellers who paid direct by cash are being told they will not be entitled to a refund unless they took out insurance which covers insolvency; those who paid by credit card may be able to claim chargebacks; while any who booked via the trade are being told to contact their travel agent.
It’s believed that there are passengers stranded in a number of overseas destinations such as Bali, Phuket and Honolulu, and they are being referred to alternative airlines to purchase flights back to Australia.
More information in today’s Travel Daily.