John Holland Aviation Services (JHAS) looks set to be shut down, with the company announcing on Friday that it is “winding back” operations at its Melbourne Tullamarine heavy maintenance base due to “current market conditions”.
John Holland Group managing sirector, Glenn Palin, said in a statement that: “After owning JHAS for seven years, we are focusing John Holland on our infrastructure, rail and specialist engineering capabilities.”
The company will now seek to sell the Tullamarine facility, the former Ansett heavy maintenance base, with Palin saying in the statement that: “A number of potential purchasers have previously expressed interest in various parts of our business.”
The company did not put a figure on the number of jobs that will be lost, but according to media reports the Australian Manufacturing Workers’ Union has estimated 230 jobs will go, comprising 150 at Tullamarine and others at Adelaide, Perth, Sydney and Brisbane, and that the Tullamarine facility will be closed by June.
Leighton Holdings-owned John Holland acquired the former Ansett Aviation Engineering Services in 2007 for $10 million. In 2013 JHAS lost major maintenance contracts for Jetstar (which moved more maintenance inhouse), Virgin Australia and Tigerair (which launched BAE System’s Australian civil aircraft maintenance business).