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SA based charter airline Rossair Charter has called in the voluntary administrators following a fatal crash in 2017.
Citing "extreme" external challenges, Rossair's parent company AE Charter has appointed voluntary administrators, raising concerns for the future of Australia's longest running charter service.
In May 2018 a Rossair plane crashed in SA's Riverland killing chief pilot Martin Scott, 48, fellow pilot Paul Daw, 65, and Civil Aviation Safety Authority inspector Stephen Guerin, 56.
The administrators have been called in after 50 years of operations in the regional aviation sector, which a Rossair spokesperson says is due to external and significant challenges.
"These recent challenges have brought high levels of uncertainty and material costs to the Group's operational businesses," says the spokesperson.
"These have had, and will continue to have, an adverse impact on the company's cash flow position."
"During the past 12 months, AE Charter and its stakeholders have done everything possible to provide for a sustainable future for the group but an inability to recommence operations has meant these efforts have not come to fruition at this point in time."
In the meantime, the company has grounded its flights until the administrators can get the company back on sustainable footing for the future.
In September last year, AE Charter signed an agreement with Melbourne company AusJet to use its regulatory approvals in a bid to have its planes return to the skies.
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Business News Australia
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