JETGO Airlines to launch Brisbane-Karratha-Singapore services
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With the risk of posting a few facts on PPRuNe:
1. There has been no receiver, or administrator appointed to Jetgo!
2. The "Application for winding up order" is a long way off any winding up. You will find it relates to an ongoing dispute regarding to passenger tax rebates that were offered by Dubbo Regional Council to get Jetgo to fly there originally, but subsequently reneged when a new mayor was elected following the Council merger". Jetgo is yet to have its day in court.
3. Tamworth stuck the boot in when Jetgo pulled out, but has been paid in full with all forward booked passengers BNE-TMW also fully refunded.
Both Tamworth and Dubbo take a "boots and all" approach to debt collection using Sydney based lawyers these days!
1. There has been no receiver, or administrator appointed to Jetgo!
2. The "Application for winding up order" is a long way off any winding up. You will find it relates to an ongoing dispute regarding to passenger tax rebates that were offered by Dubbo Regional Council to get Jetgo to fly there originally, but subsequently reneged when a new mayor was elected following the Council merger". Jetgo is yet to have its day in court.
3. Tamworth stuck the boot in when Jetgo pulled out, but has been paid in full with all forward booked passengers BNE-TMW also fully refunded.
Both Tamworth and Dubbo take a "boots and all" approach to debt collection using Sydney based lawyers these days!
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Illawarra Mercury
May 24 2018 - 6:00PM
May 24 2018 - 6:00PM
JetGo faces winding up order over unpaid debts to NSW council
A western NSW council has taken legal action against the Illawarra passenger flight operator, JetGo, lodging proceedings to start dissolving the company over an unpaid debt.
Shellharbour mayor Marianne Saliba says her council will be watching closely to monitor any ramifications for Illawarra flights, but JetGo’s managing director Paul Bredereck has insisted it’s business as usual.
Last week, according to the Australian Securities and Investments Commission, Dubbo Regional Council lodged a request to wind up the airline with the Supreme Court.Mr Bredereck said the legal action was over a long-running dispute over the calculation of passenger taxes for JetGo using Dubbo Regional Airport, with the council now asking the airline to pay up.
“It is unfortunate and highly unusual that Dubbo Regional Council has chosen to go down this path, and we would consider it to be ethically inappropriate,” he said.
Mr Bredereck said he believed his company would successfully fight the order in court next month, saying the council had previously agreed to “waive all passenger charges, landing fees and parking fees for the first year of the operation” and provide a discount in the second year.“In any case, the size of the debt is manageable if we were to lose, but we don’t believe we will lose,” he said.
“This has no implication for services in other area, including the Illawarra. Airlines have good times and tough times, it’s all part of the business cycle.
“We have a very good and effective line of communication with Shellharbour council.”
On hearing of Dubbo council’s court action, Cr Saliba said Shellharbour would be seeking assurances from JetGo about the future of its Wollongong to Melbourne and Brisbane services.“There is always cause for concern when we hear this sort of action being taken – because if Dubbo is successful the company would be wound up and would not be able to provide any of the flights they’ve committed to,” she said.
“There is a huge implication for us if ASIC winds up the company because this is our passenger service and there will be people in our city who have purchased tickets to travel.”
JetGo’s legal troubles aside, Cr Saliba said flights to Melbourne from Wollongong had proved extremely popular – with a 91 per cent patronage.
“Whatever happens with JetGo, we would want to see a passenger service continue at Albion Park,” she said.
After their public meeting on Tuesday night, Shellharbour councillors received a confidential briefing on the city’s regular passenger transport.
However Cr Saliba said she could not reveal what was said in this session.
Should Dubbo council’s winding up order progress any further, Cr Saliba said Illawarra residents should ensure their flights were purchased with a credit card which would allow them to obtain a refund in the event the company was dissolved.
The Mercury contacted Dubbo Regional Council for comment but was directed to their lawyer, who did not respond.
Last week, according to the Australian Securities and Investments Commission, Dubbo Regional Council lodged a request to wind up the airline with the Supreme Court.Mr Bredereck said the legal action was over a long-running dispute over the calculation of passenger taxes for JetGo using Dubbo Regional Airport, with the council now asking the airline to pay up.
“It is unfortunate and highly unusual that Dubbo Regional Council has chosen to go down this path, and we would consider it to be ethically inappropriate,” he said.
Mr Bredereck said he believed his company would successfully fight the order in court next month, saying the council had previously agreed to “waive all passenger charges, landing fees and parking fees for the first year of the operation” and provide a discount in the second year.“In any case, the size of the debt is manageable if we were to lose, but we don’t believe we will lose,” he said.
“This has no implication for services in other area, including the Illawarra. Airlines have good times and tough times, it’s all part of the business cycle.
“We have a very good and effective line of communication with Shellharbour council.”
On hearing of Dubbo council’s court action, Cr Saliba said Shellharbour would be seeking assurances from JetGo about the future of its Wollongong to Melbourne and Brisbane services.“There is always cause for concern when we hear this sort of action being taken – because if Dubbo is successful the company would be wound up and would not be able to provide any of the flights they’ve committed to,” she said.
“There is a huge implication for us if ASIC winds up the company because this is our passenger service and there will be people in our city who have purchased tickets to travel.”
JetGo’s legal troubles aside, Cr Saliba said flights to Melbourne from Wollongong had proved extremely popular – with a 91 per cent patronage.
“Whatever happens with JetGo, we would want to see a passenger service continue at Albion Park,” she said.
After their public meeting on Tuesday night, Shellharbour councillors received a confidential briefing on the city’s regular passenger transport.
However Cr Saliba said she could not reveal what was said in this session.
Should Dubbo council’s winding up order progress any further, Cr Saliba said Illawarra residents should ensure their flights were purchased with a credit card which would allow them to obtain a refund in the event the company was dissolved.
The Mercury contacted Dubbo Regional Council for comment but was directed to their lawyer, who did not respond.
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From the council lawyers...
“There is a debt due by Jetgo to Dubbo Regional Council and the Council has sought to recover that debt on behalf on the Dubbo Regional community. The outstanding debt being sought is currently $271,917.57.
“Council needs to act responsibly to recover amounts outstanding for ratepayers. Council has been actively communicating with Jetgo in respect of their arrears over 12 months in face to face meetings, phone meetings and through numerous correspondence.
“Council has gone to great lengths to try and work with Jetgo to manage their ever increasing debt owed to the community. This includes Council proposing a staged repayment plan for Jetgo to try helping the company get its arrears in order.
“Council organised a meeting with Jetgo in November 2017 in Brisbane to clearly outline Council’s concerns with the company’s increasing debt to the community. Unfortunately agreements made to address the outstanding debt have not been delivered on.
“Following months of ongoing direct negotiations with Jetgo, Council then issued a statutory demand in the first instance. Jetgo failed to comply with that statutory demand. With a clear responsibility to the community, Council has then taken this final step to lodge a winding up application in order to get a result for the community. The winding up proceedings are listed for 18 June 2018.
“Council’s support of Jetgo is clearly evident in the provision of 12 month fee free period that was provided for all Jetgo passengers fees for the Brisbane and Melbourne Route. This subsidy finished in July 2016 for the Brisbane route, and in October 2016 for the Melbourne route. There was no commitment from Council that any further subsidies would be provided. The 12 month subsidy provided to Jetgo was in line with what has been provided to other new airlines and in line with Council’s adopted revenue policy.
“Jetgo will only allow our community to travel their service if the passenger pays for the ticket before they fly. Councils arrangement with all airlines enabled them to pay after they have used Council facilities. Unfortunately Jetgo has not honoured such arrangements.
“Jetgo has expanded its services within Australia and overseas, whilst a substantial debt to the Dubbo Regional community has continually mounted. The Dubbo Dubbo Regional Council and community is not a bank for profit making organisations to take advantage of. Council takes very seriously the responsibility for seeking any funds owed to the community it serves.”
“Council needs to act responsibly to recover amounts outstanding for ratepayers. Council has been actively communicating with Jetgo in respect of their arrears over 12 months in face to face meetings, phone meetings and through numerous correspondence.
“Council has gone to great lengths to try and work with Jetgo to manage their ever increasing debt owed to the community. This includes Council proposing a staged repayment plan for Jetgo to try helping the company get its arrears in order.
“Council organised a meeting with Jetgo in November 2017 in Brisbane to clearly outline Council’s concerns with the company’s increasing debt to the community. Unfortunately agreements made to address the outstanding debt have not been delivered on.
“Following months of ongoing direct negotiations with Jetgo, Council then issued a statutory demand in the first instance. Jetgo failed to comply with that statutory demand. With a clear responsibility to the community, Council has then taken this final step to lodge a winding up application in order to get a result for the community. The winding up proceedings are listed for 18 June 2018.
“Council’s support of Jetgo is clearly evident in the provision of 12 month fee free period that was provided for all Jetgo passengers fees for the Brisbane and Melbourne Route. This subsidy finished in July 2016 for the Brisbane route, and in October 2016 for the Melbourne route. There was no commitment from Council that any further subsidies would be provided. The 12 month subsidy provided to Jetgo was in line with what has been provided to other new airlines and in line with Council’s adopted revenue policy.
“Jetgo will only allow our community to travel their service if the passenger pays for the ticket before they fly. Councils arrangement with all airlines enabled them to pay after they have used Council facilities. Unfortunately Jetgo has not honoured such arrangements.
“Jetgo has expanded its services within Australia and overseas, whilst a substantial debt to the Dubbo Regional community has continually mounted. The Dubbo Dubbo Regional Council and community is not a bank for profit making organisations to take advantage of. Council takes very seriously the responsibility for seeking any funds owed to the community it serves.”
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Mr Bredereck said he believed his company would successfully fight the order in court next month, saying the council had previously agreed to “waive all passenger charges, landing fees and parking fees for the first year of the operation” and provide a discount in the second year.“In any case, the size of the debt is manageable if we were to lose, but we don’t believe we will lose,” he said.
Ah, the size of that debt may very well be manageable......... but if you lose, that means you are to be wound up. GAME OVER! The liquidator will be paying your manageable council debt. I've got to say these are hardly reassuring words from the MD obviously needing to maintain the confidence of the traveling public. Businesses dispute debts all the time. Arriving at a winding up application is really the end of the line. How did it get to this?
Ah, the size of that debt may very well be manageable......... but if you lose, that means you are to be wound up. GAME OVER! The liquidator will be paying your manageable council debt. I've got to say these are hardly reassuring words from the MD obviously needing to maintain the confidence of the traveling public. Businesses dispute debts all the time. Arriving at a winding up application is really the end of the line. How did it get to this?
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From what FlightRadar24 says, JetGo currently have two operating airframes: JGB and JGR. JTG seems to have disappeared from the scene, ZJG (last flight 18 Apr) and JZG (last flight 25 Mar) are in BNE, and ZJE (last flight 12 Mar) similar in CNS. A friend of mine flew from ABX to BNE yesterday on JGR, but the flight was 2 hours late and the flight time had been changed about 4 times. They cancelled their return leg in favour of QLINK. Demanded refund instead of voucher, and got after much argument. Wise decision.
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Heard it all before. Cut your losses while you can.
Sydney Morning Herald
Message from Michael 'fooled failed airline staff'
By Andy Park
21 February 2012 — 3:00amHOURS before Air Australia was grounded last Friday, director Michael James urged staff to ''ignore speculation'' and told them it was ''business as usual''.In an email on Thursday headed ''A message from Michael'', Mr James told staff that like any airline in its infancy, it was managing costs and opportunities carefully.''Please ensure that you and your colleagues understand that the only correct information regarding our company's performance or group strategic developments will come from me,'' Mr James wrote in the email, obtained by Fairfax Media.''All other unattributed rumour is exactly that, distracting speculation raised by those without our best interests at heart.''Staff have since accused Mr James of deception, saying he must have known about the airline's dire financial problems.Several insurance companies withdrew their cover of Air Australia passengers late last year. The airline was put into administration in the early hours of Friday after a fuel supplier in Phuket refused to extend it credit.The airline was subsequently grounded, leaving thousands of passengers and flight crew stranded. Staff have expressed their 'disgust' at the behaviour of the company which left them jobless, with no way home and no word from executives over the failure.One of 29 crew who say they were forced to illegally overstay their US crew visas in Hawaii when stranded there, said the airline's problems had been common knowledge.''I worked for the company for 12 months and I knew the entire time that my employment was quite rocky,'' one said. ''Staff hold Michael James 100 per cent at fault, he has led everyone astray, including senior management. Many, from my understanding, had absolutely no idea what was to occur.''Flight Attendants Association secretary Jo-Ann Davidson, said Mr James was deceptive about the future viability of work for his staff. ''There were financial problems as far back as his loss of the defence contract in 2010 and he was in talks with administrators while pretending it was business as usual,'' she said.Fairfax Media has not been able to contact Mr James despite extensive efforts. It is believed he is overseas.Meanwhile, Air Australia's entire fleet of leased aircraft will be returned to their owners within days, dousing hopes of resurrecting the carrier.But as administrators Korda Mentha try to untangle a web of companies linked to Air Australia, the competition regulator has declined to be drawn on concerns about a lack of protection for passengers when airlines go belly up.''If someone is selling tickets when they may be about to go insolvent that is - as much as anything - an ASIC (Australian Securities and Investments Commission) issue. There is also the aviation regulator,'' the Australian Consumer and Competition Commission's chairman, Rod Sims, said yesterday.Lawyers specialising in travel have stressed most travel insurance policies do not cover consumers if an airline folds. About 4000 passengers were stranded by Air Australia's collapse, but the airline had sold about 100,000 tickets for flights that have not been taken.A long list of creditors including airports, caterers and refuellers will get an idea of their losses at the first creditors' meeting on February 29.With MATT O'SULLIVAN and LUCY BATTERSBY
Sydney Morning Herald
Message from Michael 'fooled failed airline staff'
By Andy Park
21 February 2012 — 3:00amHOURS before Air Australia was grounded last Friday, director Michael James urged staff to ''ignore speculation'' and told them it was ''business as usual''.In an email on Thursday headed ''A message from Michael'', Mr James told staff that like any airline in its infancy, it was managing costs and opportunities carefully.''Please ensure that you and your colleagues understand that the only correct information regarding our company's performance or group strategic developments will come from me,'' Mr James wrote in the email, obtained by Fairfax Media.''All other unattributed rumour is exactly that, distracting speculation raised by those without our best interests at heart.''Staff have since accused Mr James of deception, saying he must have known about the airline's dire financial problems.Several insurance companies withdrew their cover of Air Australia passengers late last year. The airline was put into administration in the early hours of Friday after a fuel supplier in Phuket refused to extend it credit.The airline was subsequently grounded, leaving thousands of passengers and flight crew stranded. Staff have expressed their 'disgust' at the behaviour of the company which left them jobless, with no way home and no word from executives over the failure.One of 29 crew who say they were forced to illegally overstay their US crew visas in Hawaii when stranded there, said the airline's problems had been common knowledge.''I worked for the company for 12 months and I knew the entire time that my employment was quite rocky,'' one said. ''Staff hold Michael James 100 per cent at fault, he has led everyone astray, including senior management. Many, from my understanding, had absolutely no idea what was to occur.''Flight Attendants Association secretary Jo-Ann Davidson, said Mr James was deceptive about the future viability of work for his staff. ''There were financial problems as far back as his loss of the defence contract in 2010 and he was in talks with administrators while pretending it was business as usual,'' she said.Fairfax Media has not been able to contact Mr James despite extensive efforts. It is believed he is overseas.Meanwhile, Air Australia's entire fleet of leased aircraft will be returned to their owners within days, dousing hopes of resurrecting the carrier.But as administrators Korda Mentha try to untangle a web of companies linked to Air Australia, the competition regulator has declined to be drawn on concerns about a lack of protection for passengers when airlines go belly up.''If someone is selling tickets when they may be about to go insolvent that is - as much as anything - an ASIC (Australian Securities and Investments Commission) issue. There is also the aviation regulator,'' the Australian Consumer and Competition Commission's chairman, Rod Sims, said yesterday.Lawyers specialising in travel have stressed most travel insurance policies do not cover consumers if an airline folds. About 4000 passengers were stranded by Air Australia's collapse, but the airline had sold about 100,000 tickets for flights that have not been taken.A long list of creditors including airports, caterers and refuellers will get an idea of their losses at the first creditors' meeting on February 29.With MATT O'SULLIVAN and LUCY BATTERSBY
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They have a critical shortage of business acumen .... and history of belligerent behavior towards the award and employment rights within Australia.
So I am not at all surprised they think they can get away with not paying passenger taxes etc. etc. to a local council.
Here's 2 weeks notice,
DCT BALLS
So I am not at all surprised they think they can get away with not paying passenger taxes etc. etc. to a local council.
Here's 2 weeks notice,
DCT BALLS
Who invests in aviation companies with a "critical shortage of cash"?
If there is any benefit, let them fail and buy the golden crumbs (if any).
I think it is time to call it as it is - A fatal shortage of funds and JetGone!
The Lawyers are clearly in and the $270K in dispute is chicken feed in a jet RPT operation.
If there is any benefit, let them fail and buy the golden crumbs (if any).
I think it is time to call it as it is - A fatal shortage of funds and JetGone!
The Lawyers are clearly in and the $270K in dispute is chicken feed in a jet RPT operation.
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I think The Investment Collective may not have been simply 'appointed'. Given the chairman's bio has him sitting in what looks to be an E135/ 145, my guess is they've got skin in the game and are now on the inside with the aim to protect their investment or their investors' investment. Maybe that will work. Maybe the investors want to be ready to move quickly if Jetgo's at or beyond financial pnr.
Forget the O/S ops!
Forget the O/S ops!
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If you look at page 10 of the PDS for the Capricorn Diversified Investment Fund, a managed fund run by the Investment Collective, it shows the Chairman boarding a JetGo aircraft..
Also you look at the group structure chart on page 19, a company called Regional Aircraft Leasing Pty Ltd sits under the managed fund and if you look the funds March 18 newsletter for the CDIF which is publically available, it states that they financed the balloon of one of the aircraft for 2mil and are leasing it to Jetgo for 60 months commencing August 17.
It can be inferred that the Investment Collective has a vested interest in the airline.
Also you look at the group structure chart on page 19, a company called Regional Aircraft Leasing Pty Ltd sits under the managed fund and if you look the funds March 18 newsletter for the CDIF which is publically available, it states that they financed the balloon of one of the aircraft for 2mil and are leasing it to Jetgo for 60 months commencing August 17.
It can be inferred that the Investment Collective has a vested interest in the airline.
Last edited by dayzel87; 28th May 2018 at 12:51.
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The plot thickens!
Its highly probable, given a successful application by Dubbo Council to wind up Jetgo, that the assets could vest to a liquidator (notwithstanding the PPSR). The financiers may be on the inside in an attempt to get the show back on track, but given they may not be aviation experts, its just as likely its now all about asset protection and loss minimisation.
I do hope they insist on some changes in management and make a go of it. Good machines, great opportunities and a significant competitive advantage. Who in their right mind thinks just 4-5 airframes spread thinly across three states from virtually the top to the bottom of Australia is a smart plan for a successful airline.
Its highly probable, given a successful application by Dubbo Council to wind up Jetgo, that the assets could vest to a liquidator (notwithstanding the PPSR). The financiers may be on the inside in an attempt to get the show back on track, but given they may not be aviation experts, its just as likely its now all about asset protection and loss minimisation.
I do hope they insist on some changes in management and make a go of it. Good machines, great opportunities and a significant competitive advantage. Who in their right mind thinks just 4-5 airframes spread thinly across three states from virtually the top to the bottom of Australia is a smart plan for a successful airline.