RATEPAYERS could be left to foot the bill after regional airline JetGo went bust owing Tamworth Regional Council tens of thousands of dollars.
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Council has confirmed JetGo has an outstanding debt of $26,400 just weeks after the troubled carrier went into voluntary administration.
The airline, which brought back Tamworth to Brisbane flights in 2015, ceased operating in the city in April.
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The company then went into voluntary administration in June and creditors will meet in Brisbane to decide whether to wind-up the operation this week.
Tamworth is in the same predicament as a number of other NSW councils owed fees by JetGo.
We never like to lose money owed to the ratepayers ... the loss, if that's what occurs, is manageable.
- TRC director of business John Sommerlad
Council’s director of business and community, John Sommerlad, said Tamworth was owed significantly less than some other councils but there was a chance the money wouldn’t be recovered if the creditors terminate the company.
“We never like to lose money owed to the ratepayers,” Mr Sommerlad told The Leader.
“We’ve managed the matter very well, the loss, if that's what occurs, is manageable.”
He said the outstanding money was owed in “passenger fees”.
The debt to Tamworth pales in comparison to fees owed to other NSW councils.
Dubbo is reportedly owed $271,000, while Albury ($250,000), Shellharbour ($149,000) and Wagga Wagga ($105,000) also have substantial debts.
Mr Sommerlad said council was able to manage the outstanding fees.
“We had in place a strategy to manage our relationship,” he said.
He said Fly Corporate had increased its services to meet the demand for the Brisbane-to-Tamworth route.
At one stage last year, Tamworth had four airlines offering passenger flights out of the airport.
Mr Sommerlad said council wasn’t looking to fill the gap left by JetGo and hoped other services would expand.
“We’re not active in the market looking for any RPT (Regular Public Transport) services,” he said.