12:00a.m. 6th October 2008

| By Alan Lander

Sunshine Coast Airport at Marcoola - generic photo of businesses based at the airport hangars. Photo: Brett Wortman/178697

Commercial tenants at Sunshine Coast Airport who have experienced rent increases of up to 300% have accused the regional council of killing the goose that laid the golden egg.

And one former flying school operator said council charges are “killing” business.

Peter Rosendale, who operated Suncoast Flying School at the airport, is one business operator who says he could no longer cope and transferred his business because lease and parking facilities became unbearable.

He now operates Suncoast Cooloola Flying School out of Gympie’s airport.

“The council put the rates up, I believe something like from $14,000 to $40,000 (a year),” he said.

Mr Rosendale said he still goes to pay fuel bills there but can no longer park his car anywhere.

“Some buildings have got parking space but others do not,” he said. “Beckers (Helicopters) for example, has thousands of trainees from all over the world, staying for three months.

“All council can see is a few cents extra (in parking fees).

“I can understand the need for traffic flow, but one flying school (has to) charge exorbitant hangar rates to park aircraft.

“A hangar in Gympie costs $40 a week – at the Coast it’s $140 a week,” he said.

Maroochy Aero Club spokesman Gerry Mussen said while the club has enjoyed 50% rate discounts in past years, that is no more.

“We are now three-and-three-quarter years into our five-year term, the land value has increased and we are made to pay for space in front of the hangar where we are not allowed to park planes,” he said.

Mr Mussen said there was a belief flyers were “silvertails”, “but the club is there for people to share the costs of flying and to keep minimal costs”.

“A concern is the Sunshine Coast Airport is being run like a capital city airport business as tough executives will be remunerated on (it’s) profitability,” he said.

“Our rental (first) went from $3000 to $9000; now it’s $11,500 or $12,000 – and council has put in a power meter.”

Mr Mussen said the airport was “not a Macquarie Infrastructure-style airport”.

“It’s owned by the former Maroochy Council,” he said.

Greg Smith, who took over long-standing family flying school Fogarty’s, said he had to walk away from the business after a lease raise “from $14,000 to $48,000 in one hit”.

“We had to fight it for two years (afterward) – we ended up with a huge back-bill,” Mr Smith said.

“We are still getting things finalised, and in debt to council at the moment.

“We are trying to get the lease signed over to someone else,” he said.

Mr Smith said when he took the lease over from the original owners he had no inkling of what was coming.

“The rent rise came out of the blue,” he said. “I think there will be a number of businesses having to rethink their financials.”

But mayor Bob Abbot said the airport was “a massive investment” and it was incumbent on the council to ensure it was no longer a financial drag on the community.

“Ratepayers own the airport, not the council,” he said.

“There is no way I’d support a business model which was losing money.”

Mr Abbot said it was okay for council’s libraries and swimming pools to not break even.

“We expect to make a loss with them, but the airport should produce a return to ratepayers,” he said.

“When you get this structure stuff happening, some arrangements do fail, but the council aims to make the airport viable long-term.

“We are creating an industry cluster round aviation.”

Mr Abbot said the airport had run at a loss in the past.

“But over the last four years with new management structures it is starting to make money.

“(And) there is still a big investment in front of us.

“Council is purchasing further land and we need a good business case to make it all work.

“I understand these (tenants’) position – but the bottom line is we can’t let that business run at a loss – it shouldn’t happen.

“Sunshine Coast Airport is no longer a little local airport.

“We have to provide a good service to a national network.

“We have gone way beyond being a community service airport,” he said.

“As such we are not required to run at a loss.”