Brindabella pilots ask receivers for help on job-related loans
Pilots employed by the collapsed Brindabella Airlines have called on the company's receivers to take on liability for personal loans entered into as a condition of employment.
A day after Brindabella temporarily stood down 140 employees, including 70 in Canberra, it has emerged that pilots were required to take out personal loans of as much as $30,000 as return for a service bond for training and expenses.
The loans, issued for flight training in the United States and other expenses, were serviced by the company during their employment as is common in the industry.
Brindabella suspended all flights this week as it struggled with millions of dollars of debt. Receivers KordaMentha were appointed for the company and are seeking a buyer for the airline, founded in Canberra in 1994.
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The executive director of the Australian Federation of Air Pilots, Simon Lutton, said he had written to the receivers on Monday asking for the loans to be included as debts of the airline, not individual pilots.
''We're very aware of the issue and are taking it up urgently with the receiver,'' Mr Lutton said.
''We are seeking an undertaking that upon examination of the loan arrangements they will be categorised as a debt of the company and not a personal debt. We haven't yet achieved that but we're looking to have urgent discussions on that basis. They've advised us that they know how important it is and they are looking into it right now and will get back to us shortly.''
Mr Lutton said he hoped the matter could be finalised in coming days but that it was too early to say what outcome would be reached.
Pilots employed by Brindabella Airlines declined to speak publicly as their employment has not been terminated.
A spokesman for KordaMentha said the receivers learned about the concerns on Tuesday and would consider the matter.
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Brindabella pilots ask receivers for help on job-related loans