Buses to transport Brindabella passengers

Buses will replace planes to transport passengers stranded by the collapse of regional airline Brindabella, the NSW government says.

The troubled airline on Sunday was placed in receivership after the Civil Aviation Safety Authority (CASA) grounded its fleet last week.

Receivers from KordaMentha have called for expressions of interest in the airline, which services regional centres from Canberra, Sydney and Brisbane.

The airline is not receiving bookings and all flights have been suspended.

NSW Premier Barry O'Farrell on Monday said discussions were taking place about how to address the transport needs of centres previously serviced by the airline.

He told reporters in Sydney that as a stop-gap coaches would transport passengers stranded as a result of cancelled Brindabella flights.

"I understand that as an interim measure we're ensuring that coaches are in place to replace those planes," Mr O'Farrell said.

However, he said that would be "little comfort to those people who have booked and paid for airfares and may have a need to get to Sydney a bit quicker than a coach will do".

He said the government was in discussions about worker redundancies at the airline, which employs 140 staff.

KordaMentha said competition, as well as regulatory and maintenance costs were a big part of the airline's woes.

"The financial pressures this would have placed on the airline would certainly be significant factors," KordaMentha partner David Winterbottom said in a statement.

He said Qantas was providing extra services on some of Brindabella's usual routes and that KordaMentha was in "urgent discussions with the NSW government and regulatory authorities regarding sourcing other replacement services".

In a statement, Virgin said it was offering special airfares on Brisbane to Coffs Harbour and Canberra to Newcastle routes for travel until December 20.

The Transport Workers Union (TWU) urged KordaMentha to keep the airline in the air.

"The receiver will make clear the causes for this airline's collapse, but safety and maintenance are clearly involved," TWU national secretary Tony Sheldon said.

Mr Sheldon called on Brindabella management to "step up and fix these safety issues" and said he would ask Qantas to help make sure Brindabella passengers weren't stranded.

"(Qantas) should commit to flying these routes until Brindabella gets back on its feet," he said.

Jeff Boyd, who set up the business in 1994, said the airline was in good shape when he sold it in 2011.

"There's towns there that need a service. It can be a viable service," he told ABC Radio.

AAP

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