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Few Options for Stranded Air Australia Passengers

Air Australia has collapsed, canceling all flights without notice and stranding thousands of people in foreign countries.  The passengers are having to fork out $3500 each to pay for return flights home, even with some airlines offering special discounted flights to help them out.  Air Australia was placed in administration n Thursday and this has left these passengers trying to secure a refund while frantically trying to find a new way to get home.
Thousands of passengers are stranded in Hawaii, Bali, and Thailand and many of these passengers are likely to receive no compensation for their useless Air Australia tickets if they paid for their tickets in cash or did not get travel insurance that refunds their tickets in the event of the collapse of an airline.  Angry passengers have been venting on Facebook and hundreds of them bought tickets through Scoopon, which, according to a company spokesperson, is working to refund customers, something that will total up to $1 million.
KordaMentha Administrator, Mark Korda, said that the merchant provider for Air Australia was ANZ and they are responsible for refunding all customers who paid via credit card.  They are working on getting the refunds out as fast as they can.  Unfortunately, for those customers who paid in cash, not a lot can be done.  The insurance companies, International Passenger Protection and Cover-More, withdrew their coverage for the struggling airline in December, when they realized how bad the airline’s finances were.  They warned passengers that if they were to fly after December 21 and anything happened to the airline, they were on their own and no refunds would be issued.
Mr. Korda said that the airline could be facing tens of millions of dollars in financial liability and that they have at least one plane grounded in Phuket because they cannot afford the jet fuel to bring it home.  Meanwhile, passengers in Hawaii a trying to find accommodations in the nearly fully booked hotels as it is President’s Day weekend.  One passenger said that there were people in the airport who were just sleeping outside of the Starbucks.  Many people do not have the money to pay for a flight home.
See the original Google News article for more details.

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