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Bankrupt Air Australia Strands Thousands

Ticket holders may not get refunds
By Matt Cantor,  Newser Staff
Posted Feb 17, 2012 8:20 AM CST

(Newser) – An Australian airline has gone bankrupt—leaving some 4,000 passengers stranded in spots like Indonesia and Hawaii. "It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately," Air Australia and its new administrators said today, according to CNN. "It also appears highly unlikely there will be any flights in the short to medium term," so passengers should seek other transportation, the company noted.

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"Apparently, the straw that broke camel's back was inability to pay for airline fuel," said a passenger stranded in Thailand—whose baggage was already in the hold when the grounding order was issued. Air Australia has already sold some 100,000 tickets for the future; their fate is unclear, as is the likelihood that customers will get their money back, said a rep. (Read more Air Australia stories.)

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