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The defiant founders of Bestjet say they are "devastated" to see customers out of pocket, claiming the business was in solid financial health before it was sold six weeks before it collapsed.
- Bestjet collapsed in December leaving thousands of customers uncertain about their holiday plans
- The company was sold six weeks before it entered voluntary administration
- Bestjet founder Rachel James laid blame at the feet of the new director and said her family was "distraught"
The online booking portal entered voluntary administration on December 18, leaving customers scrambling for reimbursements from banks and uncertain about the validity of upcoming flight tickets.
The company was sold to McVicker International about six weeks before it went into administration.
The fallout over the company's chaotic demise has taken another twist, with founder Rachel James breaking her silence.
In a statement to the ABC, Ms James, who helped set up Bestjet in 2012, claimed her family was "distraught" and "devastated" after growing the business and seeing it fold.
"During the last eight weeks, under new ownership and management, Bestjet has gone from a profitable business that followed stringent operational, financial and industry protocols, to one that has devastated thousands of customers and hundreds of staff," Ms James said.
Calling the demise "heartbreaking", she said it had "rattled" her family, which was coming to terms with unemployment.
In a report to corporate regulator ASIC on Christmas Eve, the director who took over from Ms James, Robert McVicker, said his time as director was "limited", lasting just 39 days.
"It would be prudent to make enquiries to the previous director regarding the balance of the time that this business was in operation," he wrote.
Ms James is the wife of Michael James, who helped run the failed budget airline Air Australia.
Air Australia folded in 2012 about a fortnight before Bestjet was founded, leaving debts of nearly $100 million — including about $36 million that was owed to ticket holders.
Mr James was banned by ASIC from managing corporations for three years.
Mr McVicker's report to ASIC lists a company related to Mr James, OTAlab, as being owed almost $97,000.
Mr McVicker told ASIC he had no access to Bestjet's accounting package. His report lists Michael James as an employee.
Ms James did not answer specific questions about what role Mr James played in Bestjet's management and whether he had breached his ASIC disqualification earlier during the company's operation.
In 2016 a Brisbane Supreme Court case revealed Mr James was employed by the company between November 2013 and December 2015, but his wife insisted he had no role in the day-to-day operations.
Bestjet had been stripped of its accreditation from a scheme run by the Australian Federation of Travel Agents (AFTA), which was concerned Mr James was helping run the business, and fought the move in court.
The judge said the precise service Mr James provided to the company was unclear and upheld AFTA's decision to remove the accreditation.
In the wake of Bestjet's collapse, customers have begun chasing reimbursement through their banks.
Some remain uncertain of whether their flight tickets are still valid, and others have paid increased costs to re-book.
One customer, Cheryl Hendy, fears she has lost a $16,500 business class trip to Paris for her family.
Affected customers have been sharing information through a Facebook support group, the Bestjet Fiasco Action Group.
Topics: business-economics-and-finance, australia
First posted