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Air Australia collapse leaves 4,000 stranded and scrambling for refunds

19 February 2012

Thousands of passngers travelling from Hawaii to Thailand were stranded on Friday after the budget airline Air Australia ran out of money and went into voluntary administration, immediately grounding its five jets.

The Brisbane-based international and domestic airline – formerly known as Strategic Airlines – said all flights had been cancelled and it would not be accepting new bookings because it could no longer pay its bills.

Voluntary administration in Australia is similar to bankruptcy protection in the US, and can buy a company time to trade out of its financial problems.


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