Marlborough's mayor says the Blenheim company Safe Air, which announced 92 redundancies this week, will be helped by the district council to find new projects.
The Air New Zealand subsidiary was forced to cut jobs because a contract to upgrade the RNZAF Hercules fleet was finally cancelled.
The company has been waiting since August 2008 to begin its share of the refurbishment work, which has been held up because of problems encountered by the main contractor in the United States.
Air New Zealand says Safe Air lost $6 million in the interim period.
The restructuring will reduce the number of staff from 323 to 231 and the district mayor, Alistair Sowman, says the priority now is to safeguard those 231 jobs.
He says the redundant staff will have to leave the region to find alternative employment in the aeronautics industry.