Thursday, 5 July 2018

Farewell to Australian regional airline JetGo

Struggling Australian regional airline JetGo is no more after the Supreme Court ruled that the company should be wound up.
The airline entered voluntary administration last month after grounding all passenger flights. It utilised Brazilian-made Embraer jets. 
JetGo flights were used largely by FIFO workers and serviced cities including Dubbo, Wagga Wagga, Albury Townsville, Karratha, Wollongong and other regional centres. Its Melbourne flights used Essendon Airport. 
The court action was brought by Dubbo Regional Council which claimed JetGo owed "significant outstanding fees" and there was no realistic proposal for payment.
"Dubbo Regional Council acted in the best interests of our community in this process and will continue to focus on stabilising airline services for our regional community," it said.

"Unfortunately our community, along with many other communities and businesses, have been financially impacted by this business failure.

"This action was further validated by the creditors report released on June 29 that concluded JetGo was hopelessly insolvent and that the business had failed because of poor strategic management of cash flow, and inability to generate cash flow to pay its debts," it added.

Several other councils which fund regional airports also said JetGo had failed to pay fees.

Shellharbour City Council and the City of Karratha are among those still owed money.

A report to creditors issued this week said the airline may have been trading at a loss for the last two years.

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