OzJet experiment fails, leaves passengers stranded

Australia's newest domestic airline has suspended its flights. The budget airline OzJet offered a business class service between Sydney and Melbourne when it began four months ago.

The company has been losing money ever since, and now 50 to 60 workers will lose their jobs.

OzJet Chairman Paul Stoddart has told the ABC's AM program he misjudged the market.

"It's very sad, very sad for our staff who have put in so much effort and for the passengers that were travelling with us, but sadly there wasn't enough of them," he said.

"We've given it four months and we said we'd give it six months.

"Clearly, we can see the forward bookings and the trend that traditionally comes after the Australia Day holiday when business goes back to work - it just hasn't happened for us."

Qantas says it will fly stranded OzJet passengers for free.

- RADIO AUSTRALIA