Peter
I am a Travel Agency owner, and therefore not the sharpest tool in the shed, however:
If you paid for the fare by credit card, you can legitimately call them and demand the fare is refunded due to non delivery of service.
It is a fairly straight forward process.
Call your card company and can it.
Need any further advice, give me a call week days on 1800 067 207 or after hours on 0419 323 989.
The same happened when Ansett fell over. Thankfully most of our passengers were on credit card.
Best regards
Ron
EWL