Friday, February 17, 2012

Air Australia Grounded

Air Australia has become the third carrier this year to run out of money and halt operations. The airline has issued a release explaining the situation to customers that can be read here. In an illustration of the degree to which liquidity has become a problem for struggling carriers, the decision to suspend flights was apparently made when the carrier was unable to pay for the fuel necessary for its planes to make a return flight from Phuket. See Kristen Gelineau, Aussie Airline Goes Under, Strands 2,000 Passengers, Associated Press, Feb. 17, 2012 (available here). Insolvency and restructuring firm KordaMentha has been appointed administrator of Air Australia to assist the company through what will likely be a sale or liquidation. See KordaMentha Press Release, Feb. 17, 2012 (available here).

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