Ayers Rock Skyship Pty Ltd v Voyages Indigenous Tourism Australia Pty Ltd

Ayers Rock Skyship Pty Ltd, the plaintiff, and Voyages Indigenous Tourism Australia Pty Ltd, the defendant, were involved in a dispute concerning the interpretation and enforcement of three interrelated agreements: an Operator Agreement and two leases. The plaintiff sought to establish a “Sky Ship” business involving the provision of rides in a tethered helium balloon near Uluru in the Northern Territory. The balloon was destroyed by high cross winds, preventing the plaintiff from continuing the business. The defendant issued notices of breach and termination of the agreements. The primary legal issue was whether the plaintiff breached clause 4.1 of the Operator Agreement by failing to conduct the business in accordance with the terms of the agreement during normal business hours throughout the term.

The court determined that the plaintiff was in breach of the Operator Agreement by failing to operate the business within the stipulated hours. The destruction of the tethered helium balloon by high winds was an event within the reasonable contemplation of the parties, and thus not an “accident” within the relevant sense. The doctrine of relief against forfeiture does not apply in this case as the defendant did not cause or contribute to the breach and it was not unconscientious for the defendant to insist upon its strict legal rights. Therefore, the plaintiff was held to be in breach of the Operator Agreement. The court found that the defendant was entitled to terminate the Operator Agreement and the two leases. Additionally, the defendant was granted declarations that the three agreements had been terminated.