Thousands stranded as Air Australia enters administration

Thousands stranded as Air Australia enters administration

Passengers told they’re on their own and must make “alternate arrangements”
Air Australia
A grounded Air Australia plane sits unattended on the tarmac of the Brisbane International Airport.

Around 4,000 Air Australia passengers are either stranded overseas or missing out on flights after the budget airline was suddenly placed into administration overnight.

The carrier, which was launched just three months ago, is based out of Brisbane and operated routes to Hawaii, Phuket and Bali, as well as several domestic Australian services.

A statement from administrators KordaMentha was posted on the Air Australia website and also handed to passengers awaiting flights.

“In the short term, the fleet will be grounded,” it read. “It currently appears that there are no funds available to meet operational expenses, so flights will be suspended immediately.”

The passenger advisory went on to make it clear that stranded travelers are on their own. “The flight will not take place. You should make alternate arrangements,” it warned.

Qantas to the rescue

So far, Qantas and Jetstar have offered to help passengers get home. Qantas CEO Alan Joyce told media the Australian national carrier and its subsidiary would make seats available.

“If the passengers come to a Qantas desk [or] a Jetstar desk, show their ticket, we'll give them a ticket for the same value they've paid with Air Australia," he said.

“So they don't have to pay any more and they can try and recover that fare from their travel agencies or their credit card suppliers.”

More on CNNGo: Michael James, the man behind Air Australia