Regular Passenger Transport Services - Illawarra Regional Airport

8/06/2018
 
Shellharbour City Council has not yet chosen a provider for any future regular passenger transport (RPT) services at Illawarra Regional Airport.

Council has been approached by several interested operators and is actively exploring all options.

While Council is keen to reinstate air services as soon as possible, it will not be selecting a provider in haste.

All interested services providers will be subject to thorough due diligence and tender processes, consistent with Council procedures.

Ensuring the best outcome for the community of Shellharbour City is Council’s highest priority.

Council’s Airport Business Plan recognises the importance of RPT to the wider region. The demand for services from Illawarra Regional Airport has been demonstrated since services began in October last year.

The Essendon Fields Airport Melbourne service from Illawarra Regional Airport was Jetgo’s best performing route, gaining overwhelming support from the community.

More than 20,000 people used the Melbourne and Brisbane services in just over seven months. Council now has accurate data showing its success.  

Council empathises with those affected following Jetgo’s announcement that it had gone into voluntary administration. They sadly join other passengers from other regions around Australia who find themselves in the same situation.

Council can confirm that JetGo owes $149,299 in outstanding passenger fees, which was expected income for Shellharbour Council. It also owes $269,104 being the cost of mandatory security provided by Council using contractors. 

Council is actively participating in the administration process and will pursue all options with the aim of securing the best financial outcome for the community.

Administration process

Two meetings of creditors are held as part of the administration process.

The first meeting is held 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 next Wednesday 13 June at Jetgo head office in Brisbane.

The General Manager, as well as other senior staff will be attending that meeting by 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. It will be Council’s aim to be a part of the Committee of Inspection.

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.

Media enquiries: Kelli Wells 0448 361 008.