Air Australia grounding 

Air Australia has ceased operations and entered into voluntary administration. KordaMentha has been appointed as voluntary administrator.

KordaMentha advises that it is highly unlikely that there will be any flights in the short to medium term.

Consumers whose bookings are affected by this event or who incur costs due to becoming stranded, should explore whether one of the following options are available.

Options that may be available to consumers

Option 1: Credit card charge back

Consumers who paid by credit card may be able to claim a 'chargeback' via their card issuer. Consumers should contact their card issuer or financial institution as soon as possible to initiate a chargeback request.

Option 2: Travel insurance 

Consumers with travel insurance should contact their insurer for assistance with alternate travel arrangements and any claims for compensation that may be available under their policy.

Option 3: Registration with KordaMentha 

Due to the voluntary administration of Air Australia, consumers seeking repayment may become unsecured creditors. This means that they are entitled to register a claim for a refund of monies owing with KordaMentha. The administration process will determine what, if any, funds are available to unsecured creditors. This process is governed by the requirements set out in the Corporations Act 2001.

Consumers may also seek further information on their rights under the Australian Consumer Law from the ACCC or contact NSW Fair Trading on 13 32 20.

NSW Fair Trading will continue to monitor the situation and this advice may change if there are any changes.

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