About 300 people have lost their jobs after budget carrier
Air Australia was placed in administration.
The Brisbane-based budget carrier was placed into voluntary
administration today, immediately grounding all flights and
stranding up to 4000 passengers overseas.
A spokesman for voluntary administrator Korda Mentha told AAP
the airline employed 300 staff.
"Most have these have been stood down immediately," the
spokesman said.
A few staff members have been kept on temporarily to assist
the airline throughout the administration process.
The announcement comes a day after national carrier Qantas
announced an 83 per cent fall in profits and the loss of 500
jobs because of tough business conditions.
Qantas CEO Alan Joyce said Qantas and Jetstar would try and
fly Air Australia passengers home, with about 4000 passengers
abroad with return Air Australia tickets.
The Korda Mentha spokesman said about 100,000 Air Australia
tickets that had been sold would now be invalid.
Passengers who bought tickets on a credit card or were
covered for insolvency by their insurance were likely to be
entitled to a refund, he said.
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