The hangar at the centre of a dispute between Regional Express and Wagga City Council contains a “multitude of building code violations”, according to the airline.
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Regional Express has claimed the hangar it sought to lease from council until tearing up an agreement between the two parties on Friday was “not fit for purpose as an aircraft paint shop”.
“It was agreed that council would rectify all works to be fully compliant and fit for purpose prior to leasing the premises,” a spokeswoman for Rex said.
“In the meantime it was agreed that Douglas Aerospace would be permitted to continue its business free of charge until the hangar is ready for rental by Rex. Council has not renewed the licence to operate since October despite repeated reminders and requests by Rex.”
In a letter from council’s legal representatives to Rex chairman Lim Kim Hai dated Monday, seen by the Advertiser, council has refuted any existence of a binding agreement in regards to the hangar, despite the airline’s assertions council had breached one.
“There is no binding agreement between WWCC and Rex, including any agreement dated 17 July 2015 concerning the lease of the hangar,” the letter reads.
“In the absence of any binding agreement, we are unsure what agreement Rex is purporting to terminate for repudiation or on what base Rex asserts that certain breaches have been committed by WWCC … no breaches have been committed by WWCC under the licence agreement.”
The souring of the hangar deal between council and Rex had put their commercial relationship in question, with mayor Rod Kendall on Monday moving to assure Wagga residents the city maintained a “very, very good relationship” with the airline.
In a response to questions from the Advertiser, the Rex spokeswoman said the matter was “unrelated” to the airline’s other business in Wagga.
Meanwhile, council has begun the process of evicting Douglas Aerospace, which had been operating rent-free for three months, from the hangar.
Security guards have been stationed on site at the hangar since Friday night to ensure plant and equipment aren’t removed from the facility.
Douglas Aerospace owner Doug Clarke declined to comment when contacted by the Advertiser.
