Newcastle Airport is seeking orders in the Industrial Relations Commission to stand down staff.
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The stand-downs would affect about a quarter of the airport's 59 employees. Many remaining staff will take a cut to their hours and pay.
The airport said in a media statement on Wednesday that its board members, who each receive $45,000 a year in directors' fees, would be paid "significantly reduced" remuneration "for the foreseeable future".
The application to stand down staff was mentioned in the IRC on Wednesday morning and adjourned until a hearing on September 25.
Airport chief executive Dr Peter Cock said the stand-downs were necessary to "ensure a viable business in the long term".
"This is something we hoped we would never need to consider, however, the ongoing economic impact of closed borders has made our situation untenable," he said.
"We have managed to keep most of our permanent staff employed throughout the pandemic.
"Unfortunately, in the short term this cannot continue, though for the sake of the region we need to be able to ramp up quickly to take advantage of the recovery when it inevitably occurs."
The Williamtown airport, which is owned jointly by Newcastle and Port Stephens councils, has argued unsuccessfully to be included in the federal government's JobKeeper program.
The airport's revenue has plummeted 90 per cent in the past five months and its passenger traffic 99 per cent.
It has been virtually dormant for most of that time after border closures all but ended interstate flights by Virgin, Jetstar and Qantas.
Dr Cock said he remained confident about the Hunter tourism industry and the airport's "ambitious" plans to upgrade its runway and terminal.
"This news is also a timely reminder of the need for the government to invest in the aviation industry," he said.
"Newcastle Airport has a once-in-a-generation opportunity to upgrade our runway, which will deliver jobs and build hope.
"We are imploring the government to grasp this opportunity and deliver this significant stimulus project for the region and for the nation."
Jetstar announced in June that it would close its Newcastle maintenance, pilot and cabin crew bases by the end of the year as part of massive job cuts announced by parent company Qantas.
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