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Air Australia , broke, leaves 4,000 Passengers stranded

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Air Australia , broke, leaves 4,000 Passengers stranded

Post  Panda on Fri 17 Feb - 10:45

GMT (1322 HKT)






STORY HIGHLIGHTS

  • Air Australia runs out of money, leaving about 4,000 passengers stranded
  • The airline has gone into administration and grounded its fleet
  • It advises customers to make alternative travel arrangements
  • People are left stranded in Hawaii, Thailand, Indonesia and Australia



(CNN) -- Thousands of travelers have been left in
the lurch around the world after the carrier Air Australia went into
administration and grounded its fleet Friday.

"It currently appears that there are no funds available to meet
operational expenses so flights will be suspended immediately," the
company said in joint statement Friday with its newly appointed
administrators, KordaMentha.

About 4,000 passengers in total have been left stranded in Hawaii,
Thailand, Indonesia and Australia as a result of the suspension, said
Michael Smith, a spokesman for KordaMentha.

"It also appears highly unlikely there will be any flights in the
short to medium term," the airline's statement said, advising passengers
to make alternative arrangements.

The airline had sold about 100,000 tickets for future flights, Smith
said. With no indication from Air Australia when it might resume
operations, those tickets could end up worthless.

Some customers may be entitled to refunds, the airline said,
depending on how they bought their tickets. But it added that customers
without the relevant insurance who paid in cash are unlikely to be
eligible for refunds.

"Apparently, the straw that broke camel's back was inability to pay
for airline fuel," said Michael Ilyine, an accountant from Geelong,
Australia.

Ilyine and his wife were on their honeymoon in Thailand when they
were left stuck at the airport in Phuket, he said, after their Air
Australia flight was grounded with their baggage in the hold.


CNN's Jethro Mullen contributed to this report.







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Re: Air Australia , broke, leaves 4,000 Passengers stranded

Post  Panda on Fri 17 Feb - 11:01

Marcus Ashworth...Investment Banker says Greece will not get the full amount .

There is talk that the ECB will reduce the interest on Greek ECB Bonds but this would upset private bondholders and could be the subject for English Law.

There is also the question about what happens to the interest when these ECB Bonds mature and once again highlights the need for a Central Bank and
the issue of Eurobonds which Germany will not accept.

Also, all the EU Countries contribute to the Union and get a payout. Is there a seperate Bank for dealing with the Finances of the EU as opposed to the
Euro?

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