After failed negotiations between budget airline Bonza and its aircraft lenders, the decision has been made to remove the airline's fleet from Australia.
Bonza initially announced flights from May 8 to May 14 would be cancelled and staff would remain stood down during this period.
However, the airline's financial issues have forced lease agreements on a fleet of Boeing 737-8 planes to be terminated.
Almost 60,000 passengers say they are owed money after many of their bookings were cancelled.
The low-cost carrier was less than 12 months old when it cancelled all flights across Australia and entered voluntary administration last week.
