Albury Council is owed at least $250,000 for use of its airport by JetGo

A new report from the airline’s administrators has estimated its liabilities to be up to $38.7 million.

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 Albury which is owed at least $250,000 for use of its airport.

In stark comparison, the company’s maximum “realisable” assets are $142,940, a report to the Australian Securities and Investments Commission (ASIC) says.

JetGo’s fleet of six planes held no value, the administrators said, as two were repossessed and four had no equity due to lease or loan deals.

Likewise, the company’s most valuable asset – an air operating certificate from the Civil Aviation Safety Authority – has no tangible value.

With this dire financial situation, voluntary administrator – Jonathan McLeod – has recommended those who are owed money vote to wind up the company at a meeting scheduled for next Friday.

JetGo’s money troubles came to light in late May, when it was revealed Dubbo Regional Council had lodged a request to dissolve the company over a $270,000 debt.

Days later, it emerged the company – which had already cancelled numerous flights – was experiencing a “critical shortage of cash” and operating just two planes across regional Australia. 

On June 1, the airline cancelled all flights and confirmed it had filed for voluntary administration.

The creditors meeting will be held in Brisbane on July 6.