http://www.mtatravel.com.au

Flights to Bali, Thailand and Hawaii via Budget airline Air Australia have been cancelled after the airline has gone into voluntary administration. About 4,000 passengers were stranded and advised to make alternative arrangements.

Domestic flights in Brisbane, Perth, Port Hedland and Melbourne were also affected. The first one to be cancelled was the flight from Brisbane to Melbourne early this morning.

Administrators decided to put the airline on hold after finding out that funds aren't enough to support operational expenses amid ongoing claims that the company is paying their 300 staff too low.

A flight attendant from Thailand said she's only receiving $90 per day, which already includes allowances. Bill Shorten, Workplace Relations Minister, was concerned about the issue and has stated that he will be calling the Fair Work Ombudsman to take action regarding this problem.

According to Mark Korda, administrator of KordaMentha, the airline wasn't able to buy fuel at Phuket International Airport, and due to the company's solvency, it has been decided that the airline just be put into the hands of administrators.

He added that the fuel supplier wouldn't provide additional credit to the airline company.

Mr. Korda said the airline is right now focused on dealing with stranded passengers overseas since the suspension of the budget airline Air Australia will continue.

Administrators have already spoken to Jetstar, Qantas and Virgin so far, but they have already passed on the message regarding advising passengers to make alternative flight arrangements.

Mr. Ilyine, one of the stranded passengers, was forced to find accommodation together with his wife after it was announced that the flight had been cancelled. He said Air Australia did not give them any information regarding the cancellation.

The suspension of the flight according to him was declared after a delay of more than four hours.