News

No CEO as $90m liability revealed

Administrators for the airline this week met about 100 creditors who were told a Federal Government scheme would cover only part of the 300-plus employees' unpaid wages.
Administrators for the airline this week met about 100 creditors who were told a Federal Government scheme would cover only part of the 300-plus employees' unpaid wages. Brisbane Times

A CREDITORS' meeting has revealed former Bundaberg man and Air Australia owner Michael James owes creditors more than $90 million after the collapse of his airline earlier this month.

But unlike the Philip family of SP Exports, who fronted up to their creditors at a meeting on Wednesday, Mr James was nowhere to be seen.

Administrators for the airline this week met about 100 creditors who were told a Federal Government scheme would cover only part of the 300-plus employees' unpaid wages.

But the situation is much worse for others owed money, with KordaMentha administrator Mark Korda saying the return to other creditors was likely to be nil.

"Our prognosis is the airline is not saleable, but we have had four expressions of interest for the sale of the engineer business," Mr Korda said.

"Because the company leases its buildings, leases its planes, leases its equipment, you don't have a lot of assets.

"There's not a lot to sell."

He estimated $1 million could be made from the assets.

Mr Korda said ANZ, the biggest creditor, was owed more than $20 million.

"There may be some return on (staff's) superannuation but we are not certain yet," he said.

Other creditors included aeroplane lessors, catering companies, cargo companies and spare-parts suppliers.

Mr Korda told creditors the company would most likely go into liquidation.

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

"I think their strategy was to start up a low-cost airline and, in my experience, that is a very difficult undertaking," Mr Korda said.

Thousands of passengers were stranded and even more were left with useless bookings when the airline collapsed this month.

Topics:  air australia


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Logan's playground nearer completion

TEAM: Hayden Brosnan, Finn Mann, Brooke Roth, Marshall Lebron and Leanne Fordham (back) with Matt Stokes, Bekky Kinsalla, Dylan Blackwood, Dan and Nardia Dimech on Saturday.

There's a new addition to Logan's Adventure Playground

Power back in the Whitsundays

An expected power outage has wiped out electricity across the Whitsundays.

Ergon is reporting that power should be returned to all homes.

The 5 best burgers in the Whitsundays

Little Vegas was voted top 5 place for burgers in the Whitsundays

What was your pick for best burgers in the Whitsundays?

Local Partners

PCYC makes school holidays fun

WITH the summer school holidays spanning several weeks, it can be hard to keep kids constantly entertained.

Puppetry of the Penis secrets revealed ahead of show

The famed Puppetry of the Penis is coming to the Sunshine Coast for shows in Noosa and Caloundra.

WARNING: This interview contains adult themes and traces of nuts

Noll meltdown won't affect Gympie Oz Day concert

Shannon Noll

Photo Contributed

Shannon Noll is still expected to perform in Gympie next Thursday

The surprising problem police face at Woodford Folk Festival

STREET SCENE: Woodford Folk Festival 2016.

The biggest issue for police at Woodfordia is not what you'd expect

Chrissy Teigen likes her "soft" stretch marks

Stretch marks are no problem for Chrissy Teigen

Naomie Harris in the dark over Daniel Craig's future as 007

Naomie Harris has no idea if Daniel Craig will be returning as 007

REVIEW: Will Kasey Chambers' Dragonfly take off with fans?

Kasey Chambers’ new album Dragonfly gets 3.5 stars from Cameron Adams.

CHAMBERS is back with her 11th studio album.

Ed Sheeran wants Beyonce collaboration

Ed Sheeran wants to record a duet with Beyoncé.

Nicole Kidman squirms through questions on Keith

Nicole Kidman and Keith Urban

'God, you guys are personal ... that’s for him to talk about'

Mark Salling's child porn court date cancelled

Mark Salling's upcoming court hearing has been cancelled

By the water's edge

Secure your seachange

HOT PROPERTY: Money to spend on land, buildings

File picture.

Sale, leasing of industrial real estate picks up in Mackay

Collapsed Coast company could owe up to $5 million

Staff, ATO, landlords among those out of pocket.

Ipswich block of dirt sells for $582 a square metre

JUST SOLD: A property on the Brookwater golf course sold for a record-breaking $612,000.

Property smashed 2007 record by close to $100,000

Sunday auction for historical home

Former Catholic school sure to attract spirited bidding

Ready to SELL your property?

Post Your Ad Here!