Rex scrap $2 million deal with NSW council
Rex scrap $2 million deal with NSW council
SYDNEY – 23/11/2015 05:44:24 PM [AAP]
A NSW council has been left with an empty hangar and a lot of questions after regional airline Rex cancelled a multi-million dollar deal through a media release.
Wagga Wagga Mayor Rod Kendall said he was surprised by the announcement that sees Rex withdraw from negotiations over a long-term lease of the hangar.
In a statement released on Friday night Rex claimed that Wagga Wagga City Council had “wilfully and deliberately” failed to fix breaches of an agreement made in July.
But while addressing the media on Monday Mr Kendall said he was unaware of a formal contract.
“I am certainly disappointed that a company that we hold in very high regard … would terminate negotiations via a media release,” Mr Kendall told media.
Mr Kendall also said that the council had sought legal advice after Rex threatened action to recover damages but said the council would not be initiating any legal move itself.
“I don’t think this has soured our relationship with Rex, we still have got a very, very good relationship,” Mr Kendall said.
The council was left with a $2 million debt after Douglas Aerospace, then owners of the hangar, went into administration and council took on the ownership of the hangar with the intention of leasing the space to Rex.
Mr Kendall said council had been approached by many companies interested in leasing the hangar but wouldn’t give any more detail.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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