Bali Link OzJet Placed in Administration

LEGIAN ~ The sudden suspension of twice-weekly Perth-Bali services by Australian charter airline OzJet last week was swiftly followed by the airline’s parent company placing its subsidiary under voluntary administration.

This is an option sometimes available under Australian corporate law and is used in agreed circumstances to defer enforced administration, receivership or bankruptcy.

OzJet, whose headquarters are in Melbourne, operated the Bali flights under contract to the Perth-based travel firm IndoJet. It claims IndoJet owes it money for services provided by OzJet to passengers travelling on IndoJet package deals.

On the IndoJet website this week a message dated May 21 states: “IndoJet Asia advises that our flights are continuing as scheduled. Please check our website for regular updates.”

IndoJet, which commenced OzJet-provided services between Perth and Bali in September last year, says on its website that it was formed to provide West Australians with another option for travelling to Bali.

“IndoJet Asia draws upon the experience and expertise of OzJet to provide the aircraft and operate the service. IndoJet Asia Pty Ltd and OzJet are both Australian companies determined to bring a new approach to this important holiday route,” it said last year.

Passengers on the OzJet services cancelled last week were rebooked on Garuda and Pacific Blue flights.

Parent company Heavylift, which acquired the charter carrier in May 2007 – 15 months before OzJet commenced its Bali services under contract to IndoJet – appointed an administrator to run the airline after Perth airport issued an ultimatum over unpaid airport charges.

OzJet admitted it owed Perth airport money but said it had inherited the debts from its previous owner and debts had been “substantially reduced” recently.

The airline’s Boeing 737-200 aircraft, which operated the Bali services, have been grounded. Charter services within Western Australia and the airline’s only other scheduled service, linking Perth with Derby in the north of Western Australia, continue to operate.

West Australians travelling to Bali now have the option of only two airlines for direct flights – Garuda and Pacific Blue – until July 17, when AirAsia Indonesia commences daily services with Airbus 320 aircraft.

AirAsia Indonesia has also applied to take over the Bali-Darwin route abandoned by Garuda last month after 28 years.

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