Friday, February 17, 2012 – Air Australia has grounded all flights indefinitely. The airline is facing bankrupcy and has reportedly run out of money to even refuel its planes.

All Air Australia flights have been cancelled, stranding more than 4,000 people in overseas destinations like Thailand and Indonesia. Travelers are advised to seek alternative transportation and should not rely on Air Australia to rebook their flight. Jetstar and Qantas may add extra flights to accommodate travelers affected by the collapse of Air Australia.

If you have a booking with Air Australia you may be entitled to a refund if you have paid by credit card or hold valid travel insurance. Flights paid for in cash are unlikely to be refunded.

The Air Australia call center can be contacted by calling 135 320 in Australia. The airline’s official website has been updated with information about cancelled flights and refunds.