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20 February 2012 10:02
Passengers were left stranded after the announcement
Budget airline Air Australia has gone into voluntary administration, cancelling all flights and leaving thousands of holidaymakers stranded.
The international and domestic airline, formerly known as Strategic Airlines, grounded its five-jet fleet and put a halt to new bookings after revealing it cannot pay its bills.
Approximately 4,000 passengers are currently overseas with Air Australia on round-trip tickets, with destination as far-flung as Honolulu, Hawaii and Phuket, said voluntary administrator Mark Korda.
One unfortunate passenger is Priya Sinh, who was unable to make it home from Honolulu for her 18th birthday party on Australia's Gold Coast. She used her tablet computer to tell her 70 guests via Facebook not to come.
"We tried to laugh about it, but it wasn't funny," said Sinh. Luckily her mother was able to reserve the last four seats to Sydney with the airline Jetstar.
Voluntary administration allows companies some breathing space to trade out of their financial problems. The airline will give refunds to passengers who bought tickets with credit cards or who had
travel insurance .
A spokesperson for the airline said: "It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately."
18 February 2017
At least 10 Britons have been injured in a speedboat accident off the icy coast of Norway.
17 February 2017
Comedian David Baddiel is trying to highlight the "epidemic" of dementia as a killer of older people in a new documentary.
16 February 2017
The public has spoken and the world's favourite cruises are being honoured by a top cruise review site.
15 February 2017
The collaborative #SkiSafe campaign has been relaunched in a bid to raise safety awareness among winter sports enthusiasts.
14 February 2017
A new "age defying" hormone could offer a breakthrough in preventing kidney and heart disease in people who suffer from diabetes.
11 February 2017
Patients needing new life-saving medication could have to wait two years after the UK leaves the EU, experts are warning.
10 February 2017
Families looking to take a cheap break in the upcoming half term are often sorely disappointed, however new research suggests Cyprus is the best destination for a well-priced trip.
09 February 2017
Europe remains the world's number one region as a travel destination - but tourism growth is slowing down, a travel industry report has said.
08 February 2017
A terminal cancer patient is determined to fulfil his dream of climbing Mount Everest, despite having just months to live.
07 February 2017
One third of holidaying families will opt for a British break this year, new research suggests.
04 February 2017
The benefits of treating back pain with medication could be outweighed by the longer-term side effects, a study suggests.
03 February 2017
Better connectivity in the north of England would see millions more air passengers pass through the region, an independent commission has found.