Future of 80 chopper roles hang in balance
UP TO 80 jobs could be at risk after a helicopter engineering business’s decision to relocate due to the tripling of rent by Cairns Airport.
Skytek managing director Jan Booij said he was still hopeful of negotiations with airport bosses but, if the business had to move due to rising overheads, it would be outside the Cairns region.
“Management at Cairns Airport saw fit to triple our rent at end of our lease which finishes at the end of this year,” he said.
“They’ve taken the position this is an international airport and they’re going to charge international airport rates.
“The work we do here supports the North Queensland area, but it’s not tourism, so they don’t care.”
An advertisement requesting tenders for the demolition of hangar 10 have been published in local media and Skytek has given Cairns Airport notice it will move out by the year’s end.
Mr Booij has ruled out moving to Mareeba or Innisfail.
“One of the difficulties we have with relocating is having skilled staff and getting people here to relocate,” he said.
“It’s not what we want to do but if we have a business we have got to be run on margins. Our work is driven by the resources industry, everyone works to make a profit.
“Directly about 40 people will be out a job and indirectly the closure will impact on about 80 jobs.
“We’re hopeful Cairns Airport will have further discussions. We’ll probably reach out to them and have one last try.”
Skytek’s situation is similar to that experienced by lessee Bob Simpson last year, who is now involved in a Queensland Civil and Administrative Tribunal claim to get Cairns Airport to pay back $77,000 in costs incurred when he removed the hangar he installed at a leased site.
“I had a lease for 23 years,” he said. “We owned the hangars and I want to be paid for my materials.”
Mr Simpson has since relocated to Mareeba.
Cairns Airport retail, transport and property chief commercial officer Tracey Groves said the businesses which operated on the airport were important customers and valuable contributors to the region’s economy.
“Cairns Airport, like any business, must be profitable while providing major infrastructure to accommodate aircraft operations, including runways, taxiways, lighting, aprons, security and safety officers, bird and wildlife management, fencing, grounds maintenance and equipment,” she said.
“Likewise, businesses based at the airport make commercial decisions regarding their business location and lease agreements in their own best interests.
“We use independent valuers to advise us of current market rates for airport property and base our lease negotiations on that advice.
“Over the past year, Cairns Airport has negotiated 14 new leases with general aviation businesses.”