The decision not to grant the option for a further 12-month period is due to the latest breach of the Agreement by AIAC on April 25 2019 when flight training activities were undertaken at Kempsey Airport on the ANZAC Day Public Holiday.

This follows two earlier breaches of the Agreement on July 22 and October 1 2018.

The decision has been made as part of standard business practice of managing Council's contractual arrangements and is separate to the current Noise Management Plan and Fly Neighbourly Advice process for the Airport and associated community submissions.

Kempsey Shire Council general manager Craig Milburn said the decision was made solely because of the breaches in the Agreement and not because of pressure groups in the community.

"The breaches are the only reason council have decided to not renew the Conditions of Use Agreement with AIAC," he said.

"AIAC received a warning following the breach in October last year after flying on a Public Holiday and have now breached the Agreement this year."

The existing Conditions of Use Agreement with AIAC will remain in place until June 30.

From July 1 2019, council will charge AIAC full fees for the use of Kempsey Airport in accordance with its published Schedule of Fees and Charges 2019-20.

Council has a separate lease agreement with AIAC in relation to the use of the airport's terminal building which also has an option for a further 12-month period and is currently under negotiation.

"AIAC haven't said whether they want to renew the separate lease agreement and they are waiting for the Noise Management Plan before a decision is made," Mr Milburn said.

A Noise Management Plan and Fly Neighbourly Advice for Kempsey Airport are expected to be presented to Council at the June 25 meeting. When adopted by council, the final Noise Management Plan will provide guidance to all future aircraft operators using Kempsey Airport.

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