FORMER Bundaberg boy and Air Australia owner Michael James is continuing to go to ground after the collapse of his airline, which saw thousands of passengers stranded and even more left with ruined holiday plans on Friday.

Mr James bought into what was then known as Strategic Airlines in 2002 and had a reputation for living large and throwing extravagant parties overseas.

But all that has come crashing down after he placed the company into voluntary administration, leaving 4000 people stranded overseas and a further 100,000 ticket holders with the promise of a flight that will never take off.

The New Zealand-born Mr James came to Bundaberg with his mother and stepfather when he was two years old.

Both of his parents worked at Bundaberg Airport and, when he was 12, the young aviation enthusiast began helping out with baggage handling before leaving school halfway through Year 12 to pursue a career as a check-in clerk with a regional airline.

The future of his airline is unknown as administrators KordaMentha attempt to sift through the rubble left behind.

"Our priority at the moment is to deal with the suspended operations and all the passengers and staff," administrator Mark Korda said.

"Our second priority is to see if we can get the business sold or find a white knight. And the third thing we do is (conduct) our investigation."

Air Australia had five Airbus A330-200 and A320-200 aircraft.

Its headquarters was in Hendra, Brisbane, and it flew to locations including Bali, Honolulu, Phuket, Melbourne, Brisbane and Perth.