MILDURA Airport is seeking $100,000 from its owner – Mildura Rural City Council – to assist operations during the COVID-19 pandemic and subsequent impact to the aviation industry.
In a letter to council early this month, Mildura Airport chair Peter O’Donnell said that during his 12-year tenure as a director on the airport board it had never looked to council for support to its operational expenditure.
However, Mr O’Donnell said the board remained uncertain whether any federal or state government financial support may be forthcoming as it was unable to access the $1500 per fortnight per employee JobKeeper stimulus package.
The airport is also seeking a deferral of a loan and interest repayments to council, rates relief for the 2019-20 financial year and deferral of an external asset valuation at an estimated cost of $30,000 to Mildura Airport Pty Ltd (MAPL).
“We hope that our request is seen positively to assist in the business recovery to maintain the crucial MAPL asset,” Mr O’Donnell said.
In a report to be tabled at Wednesday’s monthly meeting, council corporate general manager Chris Parham said the airport was currently experiencing financial hardship as a direct result of the impact of the coronavirus on the airline industry and therefore a significant decrease in revenue.
“The COVID-19 pandemic is having unforeseen impacts right across Australia,” Mr Parham said.
“The aviation sector has been critically disrupted as a result of border closures and has seen a significant reduction – forecasted to be in excess of 90 per cent – in patronage and service requirements and hence revenue,” he said.
“Even though regular public transport airline flights (Rex, Qantas and Virgin) and passenger numbers have reduced, this … does not have a direct correlation with a decrease in operating costs for the Mildura Airport.”
Mr Parham said the airport still needed to maintain its operations and readiness levels and continued to incur costs related to general aviation, sports aircraft, air freight, flight training, military, medical/air ambulance, agricultural, fire water bombing and charter flights.
He said cost areas including the café and baggage/passenger security screening had been closed and subsequent costs had been scaled down.
The report said a key aspect to the Mildura Airport asking council for assistance was that under the current advice available, it appeared the Airport was not eligible for the JobKeeper wage subsidy due to it being a wholly-owned corporation of council.
The airport is also seeking to defer board director elections for 12 months to maintain continuity and stability of the current board.
Councillors are expected to vote on the financial relief package on Wednesday night.
