Bestjet into administration

THE International Air Transport Association has confirmed the suspension of online travel agency Bestjet from its Billing and Settlement Plan (BSP) in Australia, saying the company had defaulted on its most recent payment to the platform.

The move follows the appointment of administrators to the company (TD breaking news) which was last month sold by Rachel James to the McVicker Investment Group (TD 06 Nov).

No information on the reason for the collapse is available at this stage, with the administrators appointed including Nigel Markey and Bradley Hellen from Brisbane-based Pilot Partners.

Bestjet was founded by Rachel James in 2012, not long after her husband Michael was banned from managing companies by the Australian Securities and Investment Commission following the collapse of Air Australia owing creditors close to $100 million.

The scale of the failure is unclear, but it’s understood Bestjet was transacting several million dollars each day in airfare sales, with the holiday plans of thousands of consumers likely to be impacted.

Bestjet was not part of the AFTA Travel Accreditation Scheme (ATAS), having engaged in extensive legal action against AFTA in 2016 over its refusal to renew Bestjet’s participation in the scheme due to “fit and proper person” provisions of the ATAS charter.

The administrator wasn’t able to respond to requests for comment before TD’s deadline today.