Karratha City owed $850,000 after JetGo collapse
The City of Karratha is owed nearly $850,000 by Brisbane-based charter company Jetgo, which was placed in the hands of liquidators.
Jetgo has been wound up and Sule Arnatovic, of Jirsch Sutherland appointed liquidator following a Supreme Court ruling on Thursday morning.
Sponsorship payments—publicised in the monthly agendas—of about $140,000 were made in the months of January and February, and payments above $280,000 were made in March and April.
JetGo was due to start running Karratha to Brisbane flights next month, and was hopeful of starting up a Singapore leg from Karratha soon after.
The City of Karratha registered as a creditor in June and put upgrades to the Karratha Airport to accommodate an international service on hold.
In a statement, the City said a review of JetGo’s finances and several risk assessments determined the company’s financial position was sound.
“Under the terms of the City’s sponsorship agreement, all payments to JetGo are to be fully refunded to the City if the services do not commence, however, the administrator has advised that if JetGo does go into liquidation that the City is unlikely to recoup any costs as the City is not a secured creditor.”
“Passengers who had booked flights on their credit card are urged to contact their financial institution to seek reimbursement of the ticket price.”
JetGo came on board after SilkAir, the only commercial airline to show interest in a Singapore flight, rescinded that interest last year.
Administrators have already sold a range of JetGo’s equipment—from office furniture to aircraft servicing tools—through Grays Online Auctions.
For more, pick up a copy of the Pilbara News next week.
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