Air Australia collapse strands thousands

Domestic and international flights of the Brisbane-based airline were all grounded on Friday, leaving administrators wishing a “white knight” to save the airline.

The cancelations started with flight VC241 from Phuket to Melbourne in the early hours of Friday, after the airline was unable to refuel its aircraft.

“The supplier of fuel wouldn’t extend them any more credit,” Administrator Mark Korda of KordaMentha said.

Korda described the company’s immediate priority as dealing with the suspended operations and the passengers, as well as the airline’s 300 staff, who he said were immediately stood down.

“Our second priority is to see if we can get the business sold or find a white knight and the third thing we do is (conduct) our investigation,” he added.

The announcement came a day after Australia’s largest airline Qantas announced an 83 percent fall in profits and the loss of 500 jobs.

“We’re certainly looking at what (Air Australia) jobs might be affected in Queensland and how we can help these people as quickly as possible,” Queensland Premier Anna Bligh told reporters.

She, however, assured that the airline’s failure would have little impact on Queensland’s tourist industry.

Qantas chief executive Alan Joyce said Qantas and Jetstar would provide extra services over the weekend to help stranded passengers overseas, many of whom are not likely to make it back home until early next week.

MRS/JR

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