Council wants the site for car rental/parking.

Pulling down the existing hangar and moving it to a new location would be cost prohibitive, and effectively spells the end of the business, Mr Koerbin said.

They have received considerable community support.

In a notice of motion for the March 20 meeting, Crs Nadin and Porter said they believed it was unethical and unfair for council, "who endorsed the current location of MAM, to ask this essential business to finance construction of another expensive aircraft maintenance facility only metres away".

"If forced to leave their current location it's understood MAM's owners have advised they will have no choice but to cease operating at Merimbula Airport," Crs Nadin and Porter said.

The councillors said about 15 years ago a substantial investment was made in MAM's longevity at the airport and funding provided to help pay for a fit-for-purpose mechanical and plane-painting workshop inside a 22x40metres hangar at the northern part of the airport site.

They pointed out that the site of the aviation workshop was determined and endorsed by council, guided by the basic airport control plan used at the time.

"Council has an obligation to ensure Merimbula Airport retains a permanent aircraft maintenance facility into the future."

The motion will be discussed at the March 20 meeting.