Shellharbour City Council owed $149,299 by JetGo

JetGo began its services in Dubbo in 2015. Photo: FILE
JetGo began its services in Dubbo in 2015. Photo: FILE

Another council has stepped forward saying it is owed money by flight operator JetGo.

Shellharbour City Council has confirmed that it is owed $149,299 in outstanding passenger fees by the company.

JetGo Australia Holdings Pty Ltd entered into voluntary administration earlier this month. It came after Dubbo Regional Council lodged paperwork to dissolve the airline, which operates routes from Dubbo to Brisbane and Melbourne, due to $271,917 in outstanding fees.

During the period of administration JetGo has suspended regular public transport services.

Two meetings of creditors will be held held as part of the administration process.

The first meeting takes place within eight days of the company entering voluntary administration, where creditors decide if they want to be part of a Committee of Inspection.

This meeting is scheduled for Wednesday, June 13 at JetGo head office in Brisbane.

Council representatives will be able to attend the meeting via teleconference from the offices of council’s solicitors.

“After the value of JetGo’s assets have been established by a Committee of Inspection, the second meeting is expected to be held within three weeks,” Shellharbour City Council said. 

This second meeting is where creditors vote on the future of the company; i.e. whether the company enters a deed of company arrangement, goes into liquidation, or otherwise ends the voluntary administration.

A statement on behalf of Dubbo Regional Council by Matthews Folbigg Lawyers said council had gone to great lengths to try and work with the airline to manage their “ever increasing debt” owed to the community.

The statement said council had proposed a staged repayment plan for JetGo to try and help alleviate the debt.

“Jetgo has expanded its services within Australia and overseas, while a substantial debt to the Dubbo Regional community has continually mounted,” the statement said.

“The Dubbo Regional Council and community is not a bank for profit making organisations to take advantage of. Council takes very seriously the responsibility for seeking any funds owed to the community it serves.”

In 2015 JetGo launched its Dubbo to Brisbane route, offering three direct flights per week. The following year the airline began direct flights to Melbourne.