Administrators for Air Australia have wound up the failed airline at a meeting of creditors in Brisbane.

Creditors voted unanimously to place the discount carrier into liquidation at the meeting, which was attended mostly by employees.

Thousands of travellers were stranded when the Queensland-based airline collapsed last month with debts of nearly AU$85 million but less than AU$500,000 in the bank.

Around 350 staff will lose their jobs and Mark Korda, from administrator Korda Mentha, says those workers will recoup most of their wages through the Federal Government's General Employee Entitlements and Redundancy Scheme (GEERS).

"We expect to collect in at least AU$1 million in assets," Mr Korda said.

"Basically GEERS will pay the employees AU$5 million, employees won't be paid AU$3 million, and then there are AU$75 million of creditors left, so the total losses are about AU$85 million."

Mr Korda says investigations into whether the company had been trading while insolvent are continuing.

Employee Alyson Sampson told the ABC she was upset that chief executive Michael James had not faced up to staff.

"It's just a shame Michael hasn't come out and supported the staff and employees. We haven't seen him," Ms Sampson said.

Air Australia's entire fleet was grounded in February after just four months of operation when the administrators discovered there was no money to meet basic operational expenses.

Originally a charter operation called Strategic Airlines, the company was relaunched in November last year as the low-cost carrier Air Australia, targeting mining communities and holiday destinations.