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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."
17 January 2017
Stansted Airport has made a bid to become Britain's next hub for long-haul travel, as passengers are promised seamless connection facilities and baggage transfer.
13 January 2017
Long-term goals such as travelling more and visiting new places have come above healthy eating and changing jobs in a list of the top New Year's resolutions.
14 January 2017
Some of the biggest airports in the UK have been forced to cancel flights as snow and blizzard conditions sweep parts of the country.
Stress could be as significant a risk factor for heart attacks and strokes as smoking, drinking and overeating, new research shows.
24 December 2016
Planned strikes by British Airways cabin crew on Christmas Day and Boxing Day have been suspended amid continuing industrial unrest ahead of the weekend break.
11 January 2017
A connection between diabetes and inflection in children could be a major breakthrough in developing a cure for type 1 diabetes, according to new research.
10 January 2017
A new trial aimed at tackling widespread loneliness among older people is successfully reducing isolation using community-based tactics, a report shows.
07 January 2017
People may be able to enjoy better brain health in later life by following a Mediterranean diet, research has suggested.
06 January 2017
Many Britons plan to cut down on the costs of their holidays in 2017, as part of their financial resolutions for the New Year.
05 January 2017
Holidaymakers have been encouraged to make the most of the fact 2017 boasts a pair of bank holiday weekends just two weeks apart.
04 January 2017
Holidaymakers are increasingly turning their attentions to trips which are all-inclusive, new research has suggested.
31 December 2016
Budget airline Norwegian has said it will launch ultra-low cost flights for as little at £56 to New York as it ramps up the pressure on its rivals.