PASSENGERS bound for Bali were stranded at Perth Airport after Ozjet Airlines suspended all flights after allegedly becoming a credit risk.
The airline blamed the decision on problems with the Civil Aviation Safety Authority and Indojet.
But Perth Airport confirmed it had refused to continue handling the airline because it had become a credit risk, reports The Australian.
Ozjet had three older Boeing 737-200s in Perth performing ad hoc charters as well as flying a scheduled service to Derby and operating flights to Bali on behalf of travel company Indojet Asia.
An Indojet customer service representative said the travel company had been given very short notice of the decision and was trying to accommodate customers.
Airport chief executive Brad Geatches said Ozjet had arrears amounting to hundreds of thousands of dollars and extending back to last year.
“They’ve broken dozens of promises to address their arrears and that culminated this week with the parent company, Heavylift, advising us that they no longer support Ozjet,” he said.
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“So it became a case of them becoming a very significant continuing credit risk.”
Mr Geatches said Heavylift had approached the airport via its lawyers to take the aircraft from Perth. Ozjet issued a short statement saying the primary reason for its decision was because CASA would not allow it to add cargo aircraft to its air operators certificate.
“Money owed by Indojet had further exacerbated the situation,” it said. “The resultant lack of revenue has resulted in a significant impact on the airline’s overall business plan.”
Ozjet gave no details about what would happen to its Perth-based staff, but said it had now sub-contracted Queensland-based Alliance Airlines to operate its Perth-Derby route.
Read the full report in The Australian.
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