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Another new Australian Airline bites the dust

Another new Australian Airline bites the dust
a woman in a suit standing in front of a plane

Looks like another under-capitalised airline – launched less than 3 months ago, goes under. Air Australia, formerly Strategic Airlines issued a statement today – cancelling all flights, and grounded all flights.

“In the short term, the fleet will be grounded” according to a statement issued by Air Australia. “It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately. For clarity, it also appears highly unlikely there will be any flights in the short to medium term.”

It’s a pity if this means the niche model they were pursuing is flawed. It may just mean that they were under-capitalised, or badly run.  I suppose we will know once the receivers arrive.

In the meantime Joyce of Qantas has told people to present their tickets at their counters, and they will try to give them flights to the same value. Good move Qantas – especially after all the bad public press you suffered from yesterdays announcement of job cuts, contraction of routes, and silence on the new ‘premium airline’ based in Asia.

Further reading: Australian Business Traveller  Sydney Morning Herald – for indignant passenger comments, and try this article by Matt O’Sullivan for some analysis

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