Shellharbour City Council will be able to move on from the JetGo saga when its puts the last vestige of the failed relationship behind it.
Councillors are expected to write off $403,404 debt owning by JetGo for passenger fees and airport security screening fees at Tuesday's council meeting.
JetGo's managing director Paul Bredereck confirmed in June last year that the embattled company had appointed an administrator after it breached its obligations under the Service Level Agreement regarding the payment of invoices.
Ticketholders were left stranded by the collapse of JetGo, which was the Illawarra Regional Airport operator from July 2017 to June 2018.
Fly Corporate, the new operator, made its inaugural flight from Shellharbour to Melbourne in November last year.
Shellharbour mayor Marianne Saliba said the council had known about the debt since JetGo went into administration.
"The debt write off is the financial process the council has to go through so we can take the money off our books," she said.
"Council had accepted we lost the money at the time.
"We went into a creditors meting and we were made aware of JetGo's assets and debts.
"We recognised that we were way down the line of those who would be paid and we knew it was highly unlikely we would get any money back.
"JetGo would be paying its employees first, then secured creditors and then us and other unsecured creditors."
The outstanding amount is made up of $149,299 of landing fees and $254,104 of security screening fees.
"Council spent money on the security screening and that is lost but the landing fees was money council expected to be paid," Cr Saliba said.
"This write off is purely an accounting procedure.
"Until council writes off the debt it will show on our books as outstanding money. Once we write if off, we will have a clean slate and can claim the loss back in taxes."
Cr Saliba said there was no point taking taking any further legal action because the council was told they would not get any money from JetGo.
"Council has tried every avenue to recoup our loses but it is gone and now we can move on," she said.
Cr Saliba said the council had severed ties with JetGo after the meting with the creditors. The company is still in the liquidation process.
The mayor reiterated the strong relationship the council had with Fly Corporate.
"Our relationship with Fly Corporate is very different to JetGo," she said.
"Fly Corporate has more than 50 years of [experience] in the industry and it is providing a great service to our community, which was always our primary concern."