Brindabella announced the suspension of its Orange/Sydney service on Friday, just a week after the Civil Aviation Safety Authority (CASA) grounded four of its aircraft when the airline admitted it was behind on routine engine maintenance.
Airline representatives have been unable to say when the Orange service will resume.
But Mr Hazelton said he will be surprised if it ever does.
He believes the airline was operating flights with a load factor of just 6 percent, when a 30-seater plane would need at least 21 passengers to break even.
“You can't run an aircraft below cost and this is what they are doing,” he said.
“They're operating small aircraft and they're not running a reliable service.
“You can't get passengers to use a service if that's what it's going to be.”
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