Skytrans flights suffer from staff losses to rival as TMR refuse to disclose cost of ‘bizarre’ contract

A Far North airline has been forced to cut flights after it lost critical staff to a rival that was awarded a state government contract “shrouded in secrecy”.

Skytrans’ CEO has said his airline lost staff to Hinterland Aviation after the competitor was awarded a contract by the state government without a tender process. Hinterland Aviation’s CEO denies his airline targeted Skytrans’ staff during recruitment. Picture: File photos

A Far North airline has been forced to cut more than 50 flights after it lost critical staff to a rival that was awarded a state government contract “shrouded in secrecy”.

Queensland’s Department of Transport and Main Roads has refused to disclose the cost of an emergency services contract awarded to Hinterland Aviation in June 2023, eight months after regulation changes by the nation’s aviation authority prevented Skytrans from flying into remote Torres Strait Islands with shorter runways.

All state government entities are required by the government’s own procurement policy to disclose basic details, including costs, of contracts worth more than $10,000.

The contract was also not subject to a tender process.

A department spokesman said a legislation technicality meant the government’s procurement policy did not apply to this contract.

Hinterland Aviation was awarded an emergency services contract by the state government but the cost of the contract has not been disclosed. Picture: Stewart McLean

“The contract to enable Hinterland Aviation to operate these services was issued under emergency service contract provisions in the legislation, and not under a procurement policy or process,” the spokesman said.

“Skytrans was advised Hinterland Aviation would be in place for 12 months, and that in early-2024 the state would request evidence that Skytrans had received (CASA) approvals to service the islands at the previous service levels. In the event they had not, the state would commence an open market procurement process.

“The reason for entering into a contract with Hinterland Aviation was due to Skytrans’ inability to meet the existing public passenger transport requirements. The state holds the ability under the passenger transport legislation to temporarily appoint an operator to maintain services for a community. Hinterland Aviation held approval from the Civil Aviation and Safety Authority to undertake the services.”

Leichhardt MP Warren Entsch said the state government’s awarding of the ESC was “shrouded in secrecy”. Picture: Asanka Ratnayake/Getty Images

Leichhardt MP Warren Entsch said he understood the subsidy enabled Hinterland Aviation to hire Skytrans’ staff, ensuring it could operate routes to outer Torres Strait Islands required by the ESC.

He said the government’s procurement of Hinterland’s services was “shrouded in secrecy”, but stressed, however, he did not suspect any foul play from Hinterland Aviation.

The Cairns Post is also not suggesting Hinterland Aviation engaged in wrongdoing.

Mabuiag Island airstrip is one of the shortest in Australia. Skytrans and Hinterland Aviation have CASA approvals to land on the island. Picture: File photo

“The contract was awarded by the department in total secrecy when it knew Skytrans had secured the CASA approvals again and was about to start flying,” Mr Entsch said.

“It was bizarre. The state government offered Skytrans’ competition a significant subsidy without going to tender.”

Skytrans flights throughout the Torres Strait Islands were reduced shortly after the ESC was awarded as three experienced pilots and all three of its Horn Island ground staff were lost to Hinterland Aviation, according to Skytrans CEO Alan Milne, who said his airline was still recovering services as it trained new pilots on specific aircraft.

He said operations in Cape York had also been indirectly affected due to pilot shortages.

Skytrans’ services throughout the Torres Strait Islands have been reduced after the ESC was awarded to its competitor Hinterland Aviation, according to Skytrans’ CEO. Picture: Isaac McCarthy

He said he made the department aware that Skytrans had obtained CASA approvals prior to the ESC being awarded.

“I was in regular communication with the minister’s office. When asked for a progress update, we said CASA had approved our application and would be issuing permission to fly immediately and we would be commencing operations to Mabuiag and Erub the following week,” Mr Milne said.

“I was extremely surprised when I then saw a week later Hinterland was awarded the ESC. We had not been contacted about the ESC.

Skytrans CEO Alan Milne disputed the TMR claim that his airline was informed about the ESC prior to it being awarded to Hinterland Aviation. Picture: Brendan Radke

“Any suggestion Skytrans was informed about the ESC and its duration is absolutely incorrect. This is the first I’ve heard of a possible open market tender process.”

Hinterland Aviation CEO Andrew Clair said his airline did not hire Skytrans’ staff during the recruitment drive that followed its receipt of the ESC.

He said recruitment was open to any qualified pilots and ground crew and selection was not based on affiliation with any former airline.

Mr Clair said his airline’s conduct was above board and rejected claims of unusual procurement procedures by the state government.

He said he could not comment on details of the contract.

Originally published as Skytrans flights suffer from staff losses to rival as TMR refuse to disclose cost of ‘bizarre’ contract