Council Releases Statement Following Jetgo Voluntary Administration
As Of Friday 1st June
The following statement is attributable to a Council spokesperson in regards to Jetgo Australia Holdings:
Dubbo Regional Council is aware Jetgo Australia Holdings have announced that the Company has entered Voluntary Administration on Friday 1st June 2018.
The loss of commercial RPT air services provided by Jetgo to Brisbane and Melbourne is in-tensely disappointing and a significant inconvenience to the passengers who had pre-booked flights and travel plans. However, in good conscience Dubbo Regional Council could not continue to allow unpaid debts to mount up, debts which were already in excess of $270,000.
Council’s legal actions seeking to recover that debt on behalf of the Dubbo Regional community followed months of ongoing direct negotiations with Jetgo. With a clear responsibility to the community, Council took a final step to lodge a winding up application in order to get a result for the community in respect of significant and increasing unpaid debts owed by Jetgo.
Dubbo Regional Council has acted responsibly to recover the amounts outstanding for ratepayers. If allowed to continue, the significant mounting debt had potential to significantly affect Council’s budget and its ability to provide services to the community.
Jetgo has rapidly expanded its services within Australia. At the time of going into Administration Jetgo ran RPT services to Brisbane, Townsville, Rockhampton and the Gold Coast in Queensland, Wollongong, Dubbo, Wagga Wagga and Albury in New South Wales and Essendon Airport in Melbourne. Until last month, it also ran services between Brisbane and Tamworth and had plans to introduce a Brisbane to Karratha service.
This expansion has occurred whilst a substantial debt to the Dubbo Regional community has continually mounted. It is evident to Council that the Company was facing significant financial hardship beyond the debt owed to Dubbo Regional Council.
Proceedings for the legal action initiated by Dubbo Regional Council were listed for 18 June 2018. This action to enter voluntary administration is based upon the directors of Jetgo confirming that the company is unable to pay its debts as and when they fall due, however this is not limited to the debt owed to Dubbo Regional Council and extends to all obligations of the company, including other airports, employees and stakeholders.
Dubbo Regional Council will seek further legal advice in respect of its outstanding debt which is currently $271,917.57. Council will consider all the interests of the community in respect of any proposal which is put forward by the directors of Jetgo as part of the voluntary administration process.
Johnathon McLeod and Bill Karageozis of McLeod Partners have been appointed as the administrators. JETGO have advised the company will continue limited Charter Operations, however, all Regular Passenger Transport (RPT) scheduled services are currently suspended.
Further media inquiries regarding the Company should be directed to the administrators.
Source: Dubbo Regional Council