TO THE RESCUE: Airlines, banks pitch in as Air Australia goes bust

HUNDREDS of passengers have vented their fury at Air Australia after the airline went bust this morning and grounded flights, leaving them stranded.
There are reports the airline sold approximately 100,000 tickets for future flights that are unlikely to ever take off.
Virgin Australia, Hawaiian Airlines, AirAsia X, Qantas and Jetstar have stepped in to help passengers get home.
Stuck overseas? Call DFAT on 1300 555 135 within Australia or +61 2 6261 3305 overseas.
That's it for our rolling coverage but keep checking in with us for major updates.


4pm Jetstar said passengers who have already commenced their journey with Air Australia will be able to buy a ticket with Jetstar for the same price, until February 29, 2012, regardless of the return date. Meanwhile passengers who haven't yet started their trip can access special fares for travel until March 31, 2012.
3.25pm AirAsia X has announced it will waive the base seat fare on the Kuala Lumpur to Australia route to rescue the stranded. Passengers flying to the Gold Coast, Melbourne and Perth will only pay taxes and charges starting from $56, the airline said. Baggage will also be free for each passenger up to 20kg per person.
3.07pm Qantas has announced a range of measures to assist stranded Air Australia passengers.
For international flights it will match the applicable sector fare of the customer's ticket, regardless of return date. For domestic fares, passengers who have already commenced their journey Qantas will match the applicable sector fare of the customer's ticket, for travel between now and February 29, 2012.
Qantas international economy fares
Brisbane – Jakarta via Sydney, one-way: $450 return: $900
Melbourne – Jakarta via Sydney, one-way: $450 return: $900
Brisbane – Bangkok via Sydney, one-way: $550 return: $1100
Melbourne – Bangkok via Sydney, one-way: $550 return: $1100
Brisbane – Honolulu via Sydney, one-way: $650 return: $1300
Melbourne – Honolulu via Sydney, one-way: $650 return: $1300

Qantas domestic one-way fares
Melbourne – Brisbane $159
Brisbane – Port Headland $492
Broome – Perth $245
3pm Enraged passenger Karen Burns, who had to fork out an extra $4000 to fly to Thailand, has created a Facebook page for those impacted by the Air Australia grounding. She hopes that by joining together passengers will be able to push for action.
Air Australia
2.45pm Passengers seeking refunds and who paid for their tickets via the Commonwealth Bank need to come in to a branch and lodge a notice of dispute, a spokeswoman said. The Commonwealth Bank will then lodge it with Air Australia's bank on behalf of the passengers and await refunds from them.
Passenger Pete from Brisbane said he is happy the bank is assisting customers:
"Commonwealth Bank is making it easy for customers, they are submitting a notice of dispute to Air Australia's bank and are hoping for return of funds within two days, but it may take up to 45 days as it depends on Air Australia's bank returning the funds to CWB first. At least we should get our money back."
2.31pm Prime Minister Julia Gillard said the airline needs to do all it can to help stranded passengers and its workers:
"I want to say to the administrators they need to do everything they can to ensure that these people who have been passengers with this airline get back home.
"I do understand that Qantas and Jetstar are stepping up with some additional seats to help people get back home. But I do want to see maximum support for those Australians who have been stranded ... and of course we want to see them deal with their workforce properly.''
Air Australia passenger
2.18pm Qantas is pleading for patience as it works on a plan to help stranded Air Australia passengers.
2pm Passenger Nicole told she is outraged the $2000 she paid for flights will likely not be refunded due to technicalities.
"The bank has informed me I am outside the 90 day disputation of a transaction period - they will put it through but it is more than probable the money is lost - shame on you.

"My travel insurance company... has informed me that they had a waiver against AirAustralia become insolvent, at no time was I advised when I spoke with them and told them who I was flying with - shame on you."
She also said the cost of flying to Phuket has increased from $1800 to more than $2500 today.
1.50pm Australia's aviation industry should be properly investigated after the demise of Air Australia, Tony Sheldon from the Transport Workers Union said.
Mr Sheldon said Air Australia has previously held contracts with successive federal governments and was supposed to be open about its performance:
"There is an obligation to ensure if a company is flying into our air space that they're profitable and able to operate.''
1.37pm A Department of Foreign Affairs and Trade (DFAT) spokesman told ABC News the Australian embassy in Bangkok is in touch with local authorities to help any Australians stranded in Thailand.DFAT's 24-hour Consular Emergency Centre number is 1300 555 135 within Australia or +61 2 6261 3305 overseas.
1.33pm Virgin Australia Airlines has announced it will assist Air Australia passengers stranded in Denpasar.
Virgin Australia Group Executive of Corporate Communications Danielle Keighery said the airline would provide passengers with special fares to allow them to travel home from Denpasar to Brisbane, Sydney or Melbourne for US$199 ($185), excluding baggage one way for sale until midnight Monday 20 February for departures until Friday 2 March 2012.
1.18pm A passenger claims he lost over $5000 worth of flights despite having insurance via an online travel website as it failed to inform him it was withdrawing insurance cover for Air Australia.
"At no point was it disclosed that this airline was not covered by them for Travel Services Provider Insolvency. This is the only airline not covered by this policy. Shame on you... for continuing to push these flights knowing that your insurer had major concerns and withdrew coverage of the airline, and not disclosing this area of concern."
12.50pm The Government says it is ready to assist employees of Air Australia. Minister for Employment and Workplace Relations Bill Shorten said even if the company enters liquidation and is unable to pay employees the entitlements they are owed, they may be able to receive financial support:
“The information we have is that at this stage it appears that workers have only been stood down and not been made redundant. However I have been in close contact with the administrators early today and they have agreed to work closely with my Department to be ready and able to assist workers with any appropriate entitlements as swiftly as possible."
12.27pm The airline sold about 100,000 tickets for future flights that are unlikely to ever take off, Fairfax reported.
air australia
12.22pm Brisbane Airport is urging any Air Australia passengers to stay at home, with a spokeswoman saying:
"Passengers holding tickets are advised not to come to the airport at this time. BAC (Brisbane Airport Corporation) regrets this situation and is disappointed for the management and staff of Strategic Airlines (now trading as Air Australia) and for the travelling public.''
12.13pm The pilots' union said the airline had failed to consult with it or the pilots before going into administration. Australian Federation of Air Pilots President Captain Bryan Murray said he was "saddened and disappointed" at the announcement.
"Obviously, this is bad news for our members at Air Australia... It is regrettable that the company did not consult with the union or the pilot body prior to this drastic step being taken."
11.52am Passenger Krystel Hayes from Brisbane said she has been unable to obtain a refund from her bank, despite being advised to do so by the airline.
"I just contacted my bank about a chargeback and they advised they will not process a chargeback as the fare is not disputed it is a valid transaction therefore no refund! Why are they directing people to the banks if they will be doing nothing to assist?"
11.35am Ironically Strategic Airlines (which was rebranded as Air Australia last November) put on extra flights to assist passengers stranded by the Qantas grounding last October. Now Qantas is planning to come to the rescue of Air Australia's passengers.
Air Australia
11.22am Nyomie Horton is devastated that her young daughter won't be able to be with her loved ones on her birthday.
"Thanks Air Australia - my daughter now gets to celebrate her first birthday with no extended family around her - thanks for nothing!"
11.15am Passengers have taken to Twitter and Facebook to vent their anger.
11.09am There are claims Air Australia was paying foreign flight attendants as little as $90 a day.
11am Pensioner Allan Marshall told he saved for a year to fly to his dream destination of Hawaii on March 3 and is furious about the news.
"We are pensioners and in out twilight years we saved and went without to go to Hawaii... But now we have gone without for the last year for zero. Not happy."
10.55am Hawaiian Airlines is offering a special one-way "rescue fare" of $300 between Honolulu and Sydney for travellers stranded by today's shutdown of of Air Australia.
Mark Dunkerley, Hawaiian’s president and CEO, said the airline will offer flights through to March 1.
“We’re offering this special fare to help our friends from Australia return home and not let this unfortunate circumstance tarnish their vacation in Hawaii."
10.50am Stranded in Phuket, Air Australia passenger Michael Ilyine told ABC News he and his wife were told to make their own way home.
10.40am Qantas says its developing a plan to assist stranded customers and will announce the details soon. In the meantime it has advised Air Australia passengers to go to the Qantas Sales Desk at the airport for assistance.
10.17am The head of Queensland’s Tourism Industry Council Daniel Gschwind says the collapse of Air Australia won’t hurt tourism in his state.
Mr Gschwind says highly competitive industries sometimes produce victims, and Air Australia is one of those.
"We'll survive - we have very viable, very strong airlines which have created a very consumer-friendly aviation market for Australia so that's unfortunately the price of that very competition that we pay sometimes."
10am Most of the airline's 300 staff have been stood down, Fairfax reported.
9.40am Air Australia's Twitter and Facebook pages are no longer working.
Air Australia

9.28am Air Australia denied as late as yesterday that it was going bust and continued to sell tickets on Wednesday,The Australian reports.
This is what the airline allegedly told Crikey.com on Wednesday:
"Air Australia yesterday specifically and comprehensively denied that it had entered into administration."
9.08am Voluntary administrator Mark Korda of Korda Mentha told Fairfax Radio they had been contacted early this morning and appointed after Air Australia was unable to pay for fuel.
"Overnight the company was unable to refuel its planes in Phuket, the directors appointed us at 1.30 this morning and the boys have been working throughout the night to deal with what's a very difficult situation
He said administrators would work through the weekend to try to find a "white knight'' to save the airline.
8.50am Passengers have taken to Twitter and Facebook to voice their anger.
Aaron O'Brien: "Dear Air Australia. Thanks for going into administration on the day I'm flying with you to Melbourne. That's just fantastic."
Seona Colussi: "Air Australia how can you do this? This is going to be the most expensive trip to Phuket - ever!"
Pat Brunet: "Oh great, we had over 10 people booked and paid for a wedding."
8.35am Stranded Air Australia passenger Sarah McGavin told Channel 9 that passengers at Phuket were originally told very little about what was going on.
"We have been told that the flight was delayed twice and then nothing for several hours.
"Then we had passengers go up and ask, the rumour mill went around that they had gone into administration.''
She said that she had managed to get another flight back to Melbourne, but others were not so lucky.
8.23am Air Australia has released a FAQ document for stranded passengers advising what to do next.
8.10am Qantas CEO Alan Joyce has offered to try to help put those passengers on flights.
"Jetstar is looking at adding supplementary services to help those passengers," Mr Joyce told Channel 7.
"If the (Air Australia) passengers come to a Qantas desk, a Jestar desk, show their ticket, we’ll give them a ticket for the same value they’ve paid with Air Australia, so they don’t have to pay anymore and they can try and recover that fare from their travel agencies or their credit card suppliers."
8am Shadow Treasurer Joe Hockey accused the government of making it harder for airlines, Channel 7 reported.
"The government is making it harder by, for example, imposing a carbon tax, which makes it more expensive to travel in Australia.
Mr Shorten replied:
"The fact that you can try and link the carbon tax to the stuff going on with Air Australia, I don't think reflects well on you.''
6.19am A press release given to passengers at the airport said the airline’s fleet would be grounded indefinitely and told travellers to make alternate travel arrangements.
"In the short term, the fleet will be grounded. It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately," it said.
"For clarity, it also appears highly unlikely there will be any flights in the short to medium term."
The press release also listed details for other airlines flying to Australia.
It said passengers who booked using credit cards may be able to receive a refund by asking for a charge back from their bank.
Those who paid cash were unlikely to receive a refund.
"Unfortunately if you paid by cash, it is likely you will not be entitled to a refund unless you took out insurance AND that insurance covers an event of insolvency," it said.
Honeymooners Michael and Tiffany Ilyine are among those stranded in Phuket after their flight was cancelled overnight.
Mr Ilyine, from Geelong, said the couple had been due to fly out at 7.30pm Phuket time after their 10-day honeymoon in Koh Samui.
The couple had checked in to their flight and their bags were loaded onto the plane but they were never able to board.
Mr Ilyine said the plane's departure was delayed a number of times before passengers were handed a press release from receivers KordaMentha after midnight.
There were no Air Australia staff in the terminal to speak to passengers.
"The information from the airline is that there would be no assistance," Mr Ilyine said.
"There was no communication from them at all, there were no ground staff and air staff said that they refused to answer the phones and weren’t able to be contacted.
"There's a plane-load of mainly Australians who have been dispersed from the airport with nothing really apart from a press release."
The couple managed to book accommodation five minutes from the airport and was trying desperately to find flights home on other airlines.
Mr Ilyine said most of the flights were booking out fast as passengers scrambled to get home.
The company posted a statement on its website this morning.
"On February 17 2012, the Director of the Air Australia group of companies appointed John Park and Mark Korda of KordaMentha as voluntary administrators," it said.
The Brisbane-based carrier flew domestic routes and to Bali, Honolulu and Phuket.
It was previously known as Strategic Airlines but relaunched in November 2011 as Air Australia with a view to cash in on under-serviced routes.
Chief executive Michael James said during the relaunch that he would not be attempting to compete with Qantas or Jetstar.
"I think it is re-educating Australia that you don't have to go via Sydney anymore," he told reporters at the time.
The announcement comes a day after Qantas announced it was shedding 500 jobs due to tough business conditions.
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