The travel plans of hundreds of passengers have been thrown into disarray with the financial collapse of Air Australia, with the company’s director calling in John Park and Mark Korda of KordaMentha as Voluntary Administrators in the early hours of this morning.
“It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately,” the administrators say in a statement.
“For clarity, it also appears highly unlikely there will be any flights in the short to medium term.”
Mark Korda subsequently told ABC Radio that the airline was unable to pay for fuel for flights. Industry rumours had long suggested the airline had to pay for fuel with cash in advance.
Approximately 300 employees will likely lose their jobs.
