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.
Consumer remedies
The Australian Consumer Law entitles consumers to certain remedies in the event that services are not provided as agreed.
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.
Possible remedies
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. This process is governed by the requirements set out in the Corporations Act 2001.
State and federal consumer protection authorities will continue to monitor the situation and this advice may change if there are any changes.
More information
More information on your rights under the Australian Consumer Law is available from our Consumer rights and responsibilities section or by calling 13 GQOV (13 74 68).
Last reviewed 17/02/2012 |
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