Technology

Fly365 liquidators point creditors to airlines for refunds, as probe continues into company directors

Huntley Mitchell

Huntley Mitchell

Liquidators of collapsed online travel agency Fly365 have recommended creditors seeking customer refunds contact their flight provider directly.

In an update issued to creditors earlier this month, joint liquidator Ian Niccol of Aston Chace Group said that, following a “thorough” examination of the available resources, likely costs and legal implications, a court application seeking permission to directly facilitate creditor refunds “would be unlikely to succeed”.

For inquiries relating to refund/credit entitlements requested on or after 20 February 2020 (the date that Fly365 was liquidated), Niccol recommended creditors directly refer to their flight provider, with refunds to be remitted directly to the customer.

Should the airline advise that instruction from the liquidators is required, creditors are being directed to provide them a copy of the latest notice from Niccol.

Fly365’s liquidators said shortfalls from refunds provided by airlines or consolidators will rank as unsecured claims in the liquidation. The same goes for refunds requested before 20 February 2020.

Those who wish to register a shortfall claim are being asked to complete and return a formal ‘proof of debt’ to the liquidators along with booking details and proof of the shortfall.

Niccol noted that Aston Chace Group’s investigations into the conduct of Fly365’s directors, both prior to and during the liquidation, are ongoing.

“We will continue to honour our reporting obligations to ensure creditors are fully informed as and when material information or events transpire,” he said.

The collapse of the Queensland-based OTA last year prompted then Australian Federation of Travel Agents CEO Jayson Westbury to give “serious consideration” for a partial review of its ATAS scheme.

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