Air Australia passengers stranded for days

IT WILL TAKE days for the 4000 people stranded by the collapse of Brisbane-based budget carrier Air Australia to make their own way home.

Many will arrive over the weekend but even with Qantas, Jetstar and other airlines helping out, some are unlikely to make it back until early in the week.

Administrators say they will work through the weekend to try to find a “white knight” to save the airline.

Several hundred passengers were stranded after flight VC241 from Phuket to Melbourne was cancelled in the early hours of Friday.

Administrator Mark Korda of Korda Mentha said the crisis came when the airline was unable to refuel its aircraft.

“The supplier of fuel wouldn’t extend them any more credit,” he said.

“Our priority at the moment is to deal with the suspended operations and all the passengers and staff.

“Our second priority is to see if we can get the business sold or find a white knight and the third thing we do is (conduct) our investigation.”

Mr Korda said most of the airline’s 300 staff were stood down immediately.

The announcement came a day after Qantas announced an 83 per cent fall in profits and the loss of 500 jobs.

“We’re certainly looking at what (Air Australia) jobs might be affected in Queensland and how we can help these people as quickly as possible,” Premier Anna Bligh told reporters.

“I understand other airlines are working very hard to ensure Queenslanders and other Australians are not stranded overseas.”

She said the airline’s failure would have little impact on Queensland’s tourist industry.

Qantas chief executive Alan Joyce said Qantas and Jetstar would provide extra services over the weekend to help stranded passengers get home.

Prime Minister Julia Gillard told reporters in Canberra on Friday she was concerned about the stranded passengers and the future of the airline’s staff.

“I want to say to the administrators, they need to do everything they can to ensure that these people who have been passengers with this airline get back home,” she said.

“I do want to see maximum support for those Australians who have been stranded … and of course we want to see them deal with their workforce properly.”

Ms Gillard endorsed a move by Workplace Relations Minister Bill Shorten to refer reports of Air Australia workers being paid $90 a day to the Fair Work Ombudsman.

Pilots’ union president Captain Bryan Murray said he would contact the administrator to ensure members received all their entitlements.

“It is regrettable that the company did not consult with the union or the pilot body prior to this drastic step being taken,” he said.

The Transport Workers Union has called for a thorough investigation of Australia’s aviation industry.

National Secretary Tony Sheldon said Air Australia had held contracts with successive federal governments and was supposed to be open about its performance.

“There is an obligation to ensure if a company is flying into our air space that they’re profitable and able to operate,” he said.

Mr Shorten criticised shadow treasurer Joe Hockey for linking the airline’s demise to the carbon tax, saying the claim did Mr Hockey no credit and pointing out that the tax had not begun yet.

Air Australia had five Airbus A330-200 and A320-200 aircraft, headquartered at Hendra in Brisbane, and flew to Bali, Honolulu, Phuket, Melbourne, Brisbane, Perth, Port Hedland and Derby.

It was previously known as Strategic Airlines but relaunched in November 2011 as Air Australia to cash in on under-serviced routes. - AAP