Jetgo has been wound up and Sule Arnatovic, of Jirsch Sutherland appointed liquidator following a Supreme Court ruling on Thursday morning.
Dubbo Regional Council lodged paperwork in late May to dissolve JetGo Australia Holdings Pty Ltd due to $271,917 in outstanding fees while the company was operating out of Dubbo City Regional Airport.
The council said it made the application based on “significant outstanding fees owing to the council by JetGo and the absence of any realistic proposal for payment”.
“This action was further validated by the creditors report released on June 29 that concluded Jetgo was hopelessly insolvent and that Jetgo’s business had failed because of poor strategic management of cash flow, and inability to generate cash flow to pay its debts,” a council spokesperson said.
“The administrators caused Jetgo’s business to cease trading following their appointment.”
On June 1 the airline cancelled all flights and confirmed it had filed for voluntary administration following reports the company was experiencing a “critical shortage of cash” and operating just two planes across regional Australia.
After Thursday’s court ruling Dubbo Regional Council released a statement.
“Unfortunately our community, along with many other communities and business have been financially impacted by this business failure.
“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.”
A report to creditors was released earlier this week ahead of the court hearing. It showed the creditors were owed about $38 million and reports JetGo may have been trading insolvent for almost two years before it filed for administration.
This includes almost $2.5 million owed to employees and more than $23 million from unsecured creditors, including airline customers and several regional councils including Dubbo, Wagga and Tamworth.