Budget airline Air Australia has gone into voluntary administration amid claims it was paying foreign flight attendants as little as $90 a day.
The airline’s entire fleet was grounded early this morning after administrators discovered there was no money to meet basic operational expenses.
Around 4,000 passengers are believed to be either stranded overseas or potentially out of pocket.
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Administrator Mark Korda of KordaMentha told AM that Air Australia was unable to purchase fuel at Phuket International Airport last night, prompting fears about the airline’s solvency.
“The directors had a meeting at 1:30 this morning and appointed us as administrators due to the solvency of the company,” Mr Korda said.
“The supplier of the fuel wouldn’t grant any further credit to the company.”
The brisbane-based airline employs 300 staff and flies to Hawaii, Bali and Thailand, where many passengers have be told to make alternative arrangements.
Domestic routes have also been hit in perth, Brisbane, melbourne and Port Hedland.
The first flight to be grounded was the service from Brisbane to Melbourne this morning.
One of the company’s flight attendants, who is from Thailand, has told ABC Local Radio she was being paid just $90 per day -…
