Queensland based Skytrans ceases operations

first_imgThe Cairns-based regional airline Skytrans has ceased trading and all staff have been made redundant.The family-owned business says it was not forced to shut down but felt like it needed to make a decision to maximise cash reserves for staff, suppliers and passenger refunds.Skytrans managing director Simon Wild, said that the loss of a government contract and the falling Australian dollar for the decision in a statement on the company’s website.“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,” Mr Wild said.The airline lost its government contract in October and since then had been working on a slimmer business model for 2015, based on an exchange rate with the US dollar of $0.91, the Sydney Morning Herald reported.All superannuation and entitlement payments were up to date with more than AUD$4 million paid out to staff.“To continue to operate the airline would have put at risk our staff entitlements and possible incursion of liabilities the business would be unable to meet,” Mr Wild said.Mr Wild apologised to passengers who may have been caught unaware by the sudden announcement and said he would seek legal and financial advice regarding options for the business.Source = ETB Travel News: Lewis Wisemanlast_img read more