Regional Express was months behind on its payments to airports and other suppliers before it went into administration and ratepayers will have to foot the bill for out-of-pocket local councils.
Murray Wood, chief executive of the Dubbo Regional Council in central NSW, said Rex’s administrators at EY will only pay airports from the date of their appointment on July 30.
Dubbo Regional Council CEO Murray Wood says Rex has left unpaid bills.
“But anything up to then is not going to be paid. They’ve been trading insolvent, effectively,” Mr Wood said on Thursday.
Rex is believed to have left about half a million dollars in unpaid airport fees at Dubbo. Mr Wood said the airline usually ignored the 14-day payment terms set by the city.