Regional carrier JetGo wound up
Struggling Australian regional airline JetGo will be liquidated after the Supreme Court ruled to wind up the company.
The airline entered voluntary administration last month after grounding all passenger flights.
The court action was brought by Dubbo Regional Council which claims JetGo owes ‘significant outstanding fees’ and there was an ‘absence of any 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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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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