Air Australia could be in trouble?

[Michael Cleary]

I gather that news stories over the next few days will treat us to the sight of stranded passengers demanding that the Australian Government get them home etc.

That's what Travel Insurance is for.

You feel sorry for those who operate the counters etc at airports, who are probably not actually employed by the Airline, but the ones who have to front the stranded passengers.

[StevenW]

Originally Posted by Michael Cleary

That's what Travel Insurance is for.

A great deal of travel insurance (I'd go so far as to say most) does not include cover for an airline (or any other entity related to a customers travel) becoming insolvent, and as such would be of absolutely no use if Air Australia is insolvent.

I guess the real question is: is Air Australia insolvent or were administrators appointed to prevent that happening?

[Brock Little]

Originally Posted by Jack Melon

Saw this coming for a while now.. so not surprised.

Not surprised either Jack, but feel very sorry for all the staff who are now without a job, as well as the stranded passengers.

[Alexander.L]

I really feel Air Australia grew to quickly. I mean they didn't even focus on the domestic market they just grew internationally to rapidly.

[NeilP]

Originally Posted by Nathan M

Serves them right...

You've obviously never been retrenched...

[Arthur Boy]

Just in case the staff dont see their entitlements I suggest you look at GEERS

If it comes to it, this does help....takes a while but you will see some of whats owed if your Director has screwed you as well as his customers.....

http://www.deewr.gov.au/WorkplaceRel...s/default.aspx

Good luck to the hard working VC staff!!

[Robert S]

Originally Posted by StevenW

A great deal of travel insurance (I'd go so far as to say most) does not include cover for an airline (or any other entity related to a customers travel) becoming insolvent, and as such would be of absolutely no use if Air Australia is insolvent.

The travel insurance product I normally buy DOES cover insolvency (although not all the products from that provider do cover it) but I notice with interest that they specifically excluded Strategic/Air Australia from policies issued on or after 21 Dec, the date on which they wrote the exclusion into an addendum to their PDS. For what it's worth, insolvency is defined by them to include the appointment of administrators.

[Arthur T]

Sad to see Strategic gone. Could it be their low cost strategy proven fatal to them?

[David F]

Originally Posted by StevenW

I guess the real question is: is Air Australia insolvent or were administrators appointed to prevent that happening?

They were unable to pay for fuel in Phuket for a flight back to Melbourne. A load of fuel can't be worth too much.

They owe the bank millions. They don't own any aircraft. Their cash reserves are so low they can't afford to refuel a plane. They must be insolvent, surely.

[Stuart Trevena]

Hi All,

Why couldn't they just allow the flights to return to Australia, and ground the airline here?
That way all the aircraft are in Australia, and NOT stuck at Foreign Ports, which is costing the Airline $$$ in Parking Fees, and then having then Ferry Empty back here at a later stage.

Stuart