Brisbane’s budget airline Air Australia just announced that flights are canceled and there will be no more new bookings because it can’t pay its bills. The company is now in Australia’s version of bankruptcy protection (voluntary administration). A portion of 4000 passengers were left stranded in places like Phuket and Honolulu. Jetstar and Qantas are considering selling return seats to passengers. Passengers will likely be able to recoup their Air Australia purchase price through their credit card company. The airline has only been in operation for two months. 300 jobs were just lost if the business is unable to recover.

Frankly, it is better for the operators who are running short of cash to get out fast. Maybe this bankruptcy will uncover some well-heeled investors. If not, getting out fast is the right thing to do. A shortage of cash can result in scrimping where there is no room for cost-cutting, like maintenance, etc. Cash shortages can cause budget cuts that can too easily result in loss of life.