jetfuel From Australia, joined Jan 2005, 2142 posts, RR: 0 Posted (1 year 9 months 3 weeks 4 days 4 hours ago) and read 3440 times:
Initial rumours early this morning have firmed up that Strategic could be placed into administration, or already has been,due to it being unable to repay its debt to lender ANZ.High oil prices and weakening yields, or ticket prices, have hurt the industry in general and particularly Australian carriers which have seen an onslaught of offshore competition operating off lower cost bases. One source suggested to Street Talk that KordaMentha, which ran the massive Ansett administration for more than 10 years, has already been appointed.
If the administration is confirmed, it will be the end of an airline – at least in its current form – that had promised to bring competition to Qantas and particularly Virgin Australia, marketing low-cost air fares on a young fleet of aircraft to international leisure destinations such as Phuket and Hawaii in addition to domestic flights.
Air Australia had been planning to add routes in Vietnam and China and eventually the US west coast off a larger fleet of leased Airbus A330 jets, chief executive and sole shareholder Michael James said in an interview last month.
Calls to the press office at Strategic have been met with the vague response that the company cannot comment on anything right now but will be issuing a formal statement. The Air Australia website was still selling tickets for travel this month as of 2:30pm on Wednesday.
qf002 From Australia, joined Jul 2011, 2776 posts, RR: 2 Reply 2, posted (1 year 9 months 3 weeks 4 days 2 hours ago) and read 3155 times:
Sad, but not surprising. They've been making masses of investment, with very little prospective return in the short-medium term. I just hope that I'll get a chance to see one of their A332's in the new livery before they disappear (have any even been painted yet, or is it just the A320?)
jetfuel From Australia, joined Jan 2005, 2142 posts, RR: 0 Reply 4, posted (1 year 9 months 3 weeks 4 days 1 hour ago) and read 2878 times:
AUSTRALIA's newest budget international airline, Air Australia, is working closely with specialists from the advisory arm of corporate paramedic KordaMentha in a bid to turn around its ailing business.Air Australia confirmed yesterday that specialists from KordaMentha had been working in an advisory capacity for the airline for the past five to six months
The confirmation of KordaMentha's presence at the Brisbane airline follows intense speculation yesterday about its future. The airline is still taking bookings but it declined to respond further yesterday to questions about its financial health.
Air Australia and its parent are yet to file accounts for 2011 but statements lodged with the corporate regulator last February show it was under financial pressure.
jetfuel From Australia, joined Jan 2005, 2142 posts, RR: 0 Reply 8, posted (1 year 9 months 3 weeks 2 days 12 hours ago) and read 1465 times:
HUNDREDS of passengers have vented their fury at Air Australia after the airline went bust this morning and grounded flights, leaving them stranded.There are reports the airline sold approximately 100,000 tickets for future flights that are unlikely to ever take off.