Air Australia shuts down, cancels all flights

By John Walton, February 17 2012

Air Australia, formerly known as Strategic Airlines, has shut down after running out of cash.

All planes have been grounded and flights cancelled, leaving thousands of passengers stranded as administrators step in to take control of the airline.

The Brisbane-based airline, which launched little more than three months ago, few domestically to Brisbane, Melbourne, Perth, Derby and Port Hedland, with international flights to Denpasar, Phuket and Honolulu.

The airline warns it's unlikely to resume "any flights in the short to medium term."

"In the short term, the fleet will be grounded" according to a statement issued by Air Australia. "It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately. For clarity, it also appears highly unlikely there will be any flights in the short to medium term."

Qantas CEO Alan Joyce, quoted on Channel 7 news, promised assistance from the Red Roo and Jetstar: "If the (Air Australia) passengers come to a Qantas desk, a Jetstar desk, show their ticket, we'll give them a ticket for the same value they've paid with Air Australia."

John Walton
John Walton

John Walton

Aviation journalist and travel columnist John took his first long-haul flight when he was eight weeks old and hasn't looked back since. Well, except when facing rearwards in business class.

AlG

AlG

04 Nov 2010

Total posts 674

Hands up if you saw this coming from miles away!

AirportAddict

AirportAddict

Virgin Australia - Velocity Rewards

05 Jan 2012

Total posts 335

Hear! Hear! Just been waiting for this day!

All i can say is hahahahahahaaaaaaa

They tried to get too big too soon.

Daniell

Daniell

26 May 2011

Total posts 58

People lose their job, travellers stranded, and you're laughing, Airport? Bad form alright. 

AirportAddict

AirportAddict

Virgin Australia - Velocity Rewards

05 Jan 2012

Total posts 335

Feeling very sorry for all people who are affected by the chaos it has caused. When they first came along, we just thought, 'How long will these guys last?'... and sure enough... not long... just got the impression that they were a bit too ambitious - that is the only reason that i think it is funny they go into liquidation.  That ok?

Orpheus

Orpheus

02 Nov 2011

Total posts 6

Airport Addict: with all due respect you should consider your comments before posting. The fact that many of us saw the writing on the wall, it doesn't mean we're laughing. There are about 300 people who lost their jobs and hundreds of passengers who are left with disrupted plans and out of pocket. I assume you are not currently working for the industry, as if you were you would have shown more respect and empathy for the people affected. In summary, your comment does not make you look like a visionary or even mildly amusing. It makes you look like the insensitive moron that you probably are.

Regards,

akhosla

akhosla

30 May 2011

Total posts 6

My colleague and his family were due to fly out with them tomorrow for a long awaited holiday. Until yesterday afternoon he was getting calls from their call centre asking if he wanted to pay addtional $$ per ticket to guarantee they were all seated together!

It is never nice to see a company go into adminstration but this type of behaviour is fradulent. Surly their management knew yesterday about their dire financial situation, how come they did not instruct their staff to stop trying to squeeze additional revenue from booked passengers!

And have no hope from this adminstrator Korda Mentha, they will ensure this airline never flies again - after all their interest is to drag this process as long as possible to ensure maximum hours they can bill for their fees. We were one of the creditors for Ansett, Korda Mentha made sure that we never saw 1 cent of our dues.

 

 

Libertyscott

Libertyscott

Qantas - Qantas Frequent Flyer

19 Aug 2011

Total posts 148

I'm not laughing, I'm astonished there are still businesspeople who can get work or banks to lend to them for such follies.  What is wrong with people who think they can set up such a capital intensive business with enormous operating costs and long lead times without the capital behind it to last at least 3-4 years without turning a profit?

This was a no-brainer.  The creditors were just plain stupid, but sadly a lot of employees were taken along with it and customers are affected too.  It appears that the glamour and allure of having an airline still dazzles the eyes and befuddles the minds of some that it takes away all business sense.

Noob

Noob

Virgin Australia - Velocity Frequent Flyer

28 May 2011

Total posts 81

All the best for the staff and their families.

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