Council News WAGGA WAGGA CITY COUNCIL
FIRST PRINTED SATURDAY 25 JULY 2015
Issue 54
Weekly information from us to you
POSITIVE PLANS: Looking forward to a strengthened relationship between Wagga Wagga City Council and the Rex are (from left) Mayor Rod Kendall, Rex Group’s General Manager of Engineering Dale Hall and Council’s General Manager Phil Pinyon.
HANGAR PLANS TAKE OFF Council, Rex partnership reaches new heights Wagga Wagga City Council and Regional Express (Rex) have agreed to terms for the proposed lease of the Douglas Aerospace hangar.
Douglas Aerospace Pty Ltd entered voluntary administration in May and Council was a creditor of the aircraft maintenance company for more than $2 million. While in administration, Council has been in negotiations with Rex and Douglas Aerospace and its creditors on ways forward for the aircraft painting and refurbishment business. At a meeting on 7 July, creditors voted in favour of a Deed of Company Arrangement (DOCA) to terminate the sub-lease with
be pa rt of
Douglas Aerospace, for Council to acquire plant and equipment for sale to Rex, and distribution of funds held by the administrator to creditors. The DOCA came into effect on 16 July and Douglas Aerospace is now out of administration. A Terms Sheet (commercial in confidence) has also been agreed to and outlines the process and commercial terms for a 20-year lease of the hangar to Rex and foresees the Douglas Aerospace business to be overseen by the Rex Group. General Manager of Engineering for the Rex Group Dale Hall described the agreement as a logical move for the company. “Within the Rex Group we have a fleet of 98 aircraft, including 52 Saab 340 of passenger
aircraft,” he said. “On average we will paint about seven of the Saab fleet every year – that to us is a business cost. “We hope it will reduce our costs and keep that cost within our own group, which is what we tend to do with a lot of our business. “Hopefully it will also be a business opportunity for our group.” Mayor of the City of Wagga Wagga Councillor Rod Kendall echoed Mr Hall’s comments, saying the announcement will only strengthen the relationship between Council and Rex. “Council very much values the partnerships with Rex over many years and their investments in the local economy,” he said. “This latest involvement by Rex in the aircraft painting and refurbishment business
at the airport is further demonstration of the outstanding and unwavering commitment by Rex for our community and we all owe Rex a debt of gratitude for continuing to invest in Wagga Wagga. “I call on all local residents to give Rex our fullest support in this endeavour.” Council is now required to undertake a number of improvements and rectification works on the hangar prior to the lease arrangement as a pre-condition for entering into the lease with Rex. “Council’s focus now is to undertake the remaining works necessary at the hangar so that this new venture can realise its true potential of being one of the two most significant aircraft painting facilities in Australia,” Cr Kendall said.
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