Australian Airline Runs Out of Money, Stranding Thousands
Thousands of travelers have been left in the lurch around the world after the carrier Air Australia went into administration and grounded its fleet Friday.
“It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately,” the company said in joint statement Friday with its newly appointed administrators, KordaMentha.
About 4,000 passengers in total have been left stranded in Hawaii, Thailand, Indonesia and Australia as a result of the suspension, said Michael Smith, a spokesman for KordaMentha.
“It also appears highly unlikely there will be any flights in the short to medium term,” the airline’s statement said, advising passengers to make alternative arrangements.
The airline had sold about 100,000 tickets for future flights, Smith said. With no indication from Air Australia when it might resume operations, those tickets could end up worthless.