Albury Council confirms JetGo has debt of around $250,000 for use of its airport
EMBATTLED airline JetGo has run up a debt of at least $250,000 to Albury Council for use of its airport.
The figure is slightly less than the amount owed to Dubbo Council, which lodged a request to wind up the airline with the Supreme Court and led the airline to entering voluntary administration last Friday.
Dubbo Council is owed more than $270,000 with JetGo confirming all regular passenger services would be suspended for the duration of the administration period until the end of June at this stage.
Albury mayor Kevin Mack confirmed the debt owed to the city by JetGo which began its Albury services two years ago.
“JetGo is in arrears to Albury Council for a sum of about $250,000 including money owing in our May account, which is yet to be finalised,” he said in a statement.
“The amount relates to passenger and security screening charges.
“Albury Council had previously initiated a debt recovery process with the aim of receiving the outstanding amount in a timely manner.
“Council will now deal directly with the nominated administrator.”
A total of 28,500 passengers had used the Albury-Brisbane JetGo service since it started in 2016 and another 4000 had used the Albury-Gold Coast service since it commenced a year ago.
Proceedings for the legal action initiated by Dubbo Council are listed for June 18.
Passengers booked from July 1 will remain with JetGo “at this stage”.
Meanwhile, Albury-Wodonga Business Awards organisers are chasing a replacement for JetGo as sponsor of its small business category.
Dubbo Council has defended its actions.
“Dubbo Regional Council has acted responsibly to recover the amounts outstanding for ratepayers,” a statement said.
“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.”