TRAPPINGS OF WEALTH: Michael
James's 4WD Mercedes sits outside his rented home in Bulimba, while an
expensive boat is moored outside the luxury $3.5 million riverside
property.
IT'S a soft landing for a former high-flying airline chief who came crashing to Earth.
Air Australia owner Michael James is still living a life of luxury,
while administrators pick through the smouldering remains after the airline's spectacular collapse - preparing to liquidate the company and warning that 500 unsecured creditors will get nothing.
Since
the airline's demise last month there has been silence from their
34-year-old boss, who remains behind closed doors - the doors of a
rented riverside mansion in Brisbane's trendy Bulimba.
The failed entrepreneur's neighbours include some of the city's most successful and wealthiest business families.
The $3.5 million, two-storey property features five bedrooms, four bathrooms, a private jetty and a huge glass-enclosed pool.
The multimillion-dollar riverfront property where failed Air Australia owner Michael James is staying. Picture: Annette Dew
Parked out front is Mr James's four-wheel-drive Mercedes with
personalised "AV8ION" number plates. An expensive boat is moored out the
back.
While more than 350 former Air Australia staff are looking for jobs, Mr James's family is busy putting together their next business venture.
His
wife Rachel, 35, is a director and half-owner of a company launched
less than a fortnight after Mr James put Air Australia into voluntary
liquidation.
Business records show BestJet Travel was registered
with ASIC on February 28. The directors and shareholders are Mrs James
and a Robin Smith, 45.
Believed to be an online travel operation,
the firm was launched the day before a creditors' meeting heard that Air
Australia had debts of more than $84 million when it was grounded
suddenly, stranding 4000 passengers overseas. About $36 million had been
taken for worthless advance tickets.
Next Friday, administrators KordaMentha will recommend to a second creditors' meeting that the airline be wound up.
A
report said the airline had amassed losses of $89 million since the
2010 financial year, when it launched low-cost flights around the
country and then expanded its destinations to Bali and Phuket.
Despite
writing to potential investors desperately seeking a $10 million
injection of capital last October, the airline - previously named
Strategic Airlines - went through an expensive re-badging in November,
relaunching as Air Australia.
A month later, it launched new
services from Brisbane and Melbourne to Hawaii, and flew a jet-full of
guests for a party at the exclusive Hilton Hawaiian Village on Waikiki
Beach to celebrate.
KordaMentha says investigations are continuing into whether the carrier traded while insolvent.
Mr James did not return calls.
Powerboat at the riverfront property where failed Air Australia chief Michael James is staying. Picture: Annette Dew
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