Cairns-based airliner Skytrans calls its quits

Skytrans Pty Ltd has made the decision to cease trading, effective immediately, flying its final passenger last Friday.

Managing director Simon Wild has stated the company will be seeking legal and financial advice over the next few days regarding options for the business moving forward, but has made it clear it does not include the recommencement of flights in the short to medium term.

The Cairns-based, family owned and commercially operated airline celebrated its 25th year of serving the people and communities of North Queensland.

Rex Airlines is taking over Skytrans’ routes in the western and Gulf parts of the state.

“This is not only a sad day for the business, but more importantly for our staff and indeed the passengers and communities of North Queensland,” Wild said.

“All staff has been made redundant. Everyone has already been paid their entitlements.

“We are all well aware that the aviation market has been tough and we knew that it would get tougher with Skytrans in 2015.

“Within the last few weeks we have seen the Australian dollar fall as low as US$0.81 (K1.7). Unfortunately a drop below US$0.88 (K2.28) means our revised Skytrans model would not be a viable long term proposition.

“We have been talking with possible investors and have pursued these interests diligently, but unfortunately every road pointed to unsustainability and as such we could and would not entice investors to a business we did not believe ourselves had a strong future.

“In addition to the A$2m (K4.19) gross paid in staff payouts for the first 121 staff that were made redundant in November and early December, today a final A$2m (K4.19) gross was paid to staff and again I confirm that all superannuation payments are up-to-date.

“An additional A$2m (K4.19) has been set aside and secured with our bank in the respect of credit card customers.”

Transport Minister Scott Emerson said the State Government (Queensland) was trying to find other operators for routes in the Cape.

“There were some contracts separate of the Government that Skytrans was running to regional and remote Aboriginal communities in Cape York,” he said.

“We’re now talking to other operators about seeing if we can get services in place to make up for those services Skytrans will no longer be providing.”

For passengers who have booked flights with Skytrans, the company has advised these will not be taking place, and alternate travel arrangements will need to be made.

Suppliers or other service providers should not incur any costs or perform any work without a formal purchase order or consent from Simon Wild, managing director.

– Travel Weekly 

Customers may be entitled to a refund, however this will be dependent on how you paid for your flight and from where the ticket was purchased.