Skytrans chief executive Simon Wild says the regional carrier is likely to shed about half of its 200-strong workforce once it hands over Queensland government regulated routes to Regional Express (Rex) in the new year.
The airline has earmarked 101 jobs that will have to go once its three contracts with the Queensland government conclude on December 31 2014.
Skytrans’ fleet of eight aircraft is also expected to be trimmed back and although it was not clear how many airframes would go at this stage, at least one or possibly two were likely to be withdrawn.
Despite the current difficult situation, Wild says Skytrans has an encouraging future and would continue to operate regular public transport (RPT) services.
“The Queensland Transport contracts was one aspect of our business,” Wild said on Monday.
“We still have a very strong and robust business up here in the north so we will be resizing our business based on our routes in the Far North.
“All our own RPT network and services remain and we will continue to operate those indefinitely.”
Wild said management was currently consulting with staff on the extent of job losses at both its Cairns and Brisbane bases.
“About 101 full time employee positions will probably go,” Wild said.
“Some people are interested in going part-time, others are interested in job-sharing, some are interested in taking voluntary redundancy.
“It will be a scale-back as we finish contracts and depending on what other opportunities arise between now and when we finish those contracts.”
Wild said the loss of those government contracts had also put on hold proposed expansion in South East Queensland, given those regulated routes “underpin quite a lot of other types of operations”.
Skytrans currently based two Dash-8 Q300s in Brisbane and Wild said those two aircraft were expected to remain operating from the Queensland capital.