Douglas Aerospace is set to leave its $2.5 million hangar at Wagga Airport by the end of the week.
The company, which owned the hangar until it defaulted on its loan repayments to Wagga City Council, was asked to vacate the building last month.
Its owner, Doug Clarke, told the Advertiser on Tuesday the company planned to be out of the hangar after this week, as per council’s wishes.
“If that’s what they want,” Mr Clarke, who is currently in Queensland, said.
Mr Clarke declined to discuss Douglas Aerospace’s future plans once it leaves the hangar at Wagga Airport with the Advertiser, but said he would reveal more once the company had left the building.
Council general manager Alan Eldridge said Douglas Aerospace would be “locked out” of the hangar if it had not voluntarily vacated by the end of the week, but he believed there was no reason it would come to that.
“We have no reason to believe they are not complying,” he said.
Once Douglas leaves, the hangar will be left vacant, with Wagga City Council still in the process of trying to find a tenant after Regional Express tore up its lease agreement last month.
Mayor Rod Kendall confirmed on Tuesday negotiations on a new lessee were ongoing with a number of parties, with that deal discussed confidentially at council’s meeting on Monday.
“I can confirm we are having negotiations with … at least one third party,” Cr Kendall said.
“We’ve had some inquiries and we’re continuing negotiations.”
Douglas Aerospace went into voluntary administration in May this year, triggering the chain of events leading to the company being asked to leave the hangar on Friday.
Wagga City Council was forced to cancel the $2.5 million loan it made to Douglas Aerospace to build the hangar in July, resulting in council resuming ownership of the building.
Council then entered in to a lease agreement of up to 20 years with airline Regional Express, however that deal fell apart last month amid claims of breached agreements.
The fallout from the saga played a major role in the departure of former council general manager Phil Pinyon in September.
It is unclear when an external auditor’s report into the issue, which is currently with council, will be released.
