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Thousands Stranded in Southeast Asia as Air Australia Goes Under
February 17, 2012

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Sydney. Thousands of travelers are stranded after budget airline Air Australia went into voluntary administration, immediately grounding its entire fleet.

The Brisbane-based airline said all flights on Friday had been canceled and the airline would not be accepting new bookings because it could no longer pay its bills.

Voluntary administrator Mark Korda told Australia’s Fairfax Radio around 4,000 passengers are overseas with Air Australia round-trip tickets. Some of those affected are stranded in Honolulu and Phuket, Thailand.

Passengers who bought tickets with credit cards or had travel insurance may be given a refund.

The airline regularly flies to Bali, Phuket, Honolulu and cities within Australia.

Associated Press