Air Australia screeches to a halt

AIR Australia was placed into voluntary administration earlier today after creditors discovered the airline had insufficient funds to cover basic operational expenses.

The carrier, which operates scheduled services to Brisbane, Melbourne, Perth, Derby and Port Hedland, and to international destinations such as Denpasar (Indonesia), Phuket (Thailand) and Hawaii, has been forced to suspended all services indefinitely, leaving about 4,000 passengers stranded without flights.

Qantas and Jetstar are offering fares to stranded passengers at the same price as their Air Australia tickets, while Virgin Australia said it would offer discounted tickets to passengers stuck in Denpasar, according to a report in ABC News.

These passengers were earlier asked to make their own alternative travel arrangements.

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