All Fly Corporate flights out of Shellharbour Airport will be grounded from Wednesday.
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Fly Corporate CEO, Andrew Major, said the carrier would suspend all regional flights from 1pm on Wednesday, due to the federal government's strict domestic travel restrictions and other states closing their borders.
"The current circumstances are unprecedented," Mr Major said in a statement.
"We sincerely apologise for the inconvenience to customers and would like to thank all of them, and our loyal staff, for their support. We wish everyone well during this most difficult period."
At this stage the airline was looking to resume flights in the second half of 2020 but admitted this was dependent on how the COVID-19 situation progressed.
"Be assured that we will resume normal operations as soon as we are able to do so once the COVID-19 situation has alleviated, travel restrictions have lifted, travel demand has normalised and operations can responsibly re-commence," a statement from the airline said.
Customers with Fly Corporate tickets will get a 12-month travel credit dated from the day the ticket was purchased.
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"If we are unable to provide you with an alternative replacement flight acceptable to you within 12 months of the original ticket issue date we will provide you with a refund as soon as possible after expiry of that 12-month period," the statement read.
At present making forward bookings by applying credits was suspended until a resumption date for flights was set.
The company asked passengers to refrain from calling the airline within the next 48 hours "due to anticipated high demand".
The reservations@flycorporate.com.au email address was listed as the preferred option to deal with ticketing issues.
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