Corporate Contrails

Aviation will only continue to perform that social role if Government accepts that it must act fairly or get out of the equation.

The railways of this country receive the most massive subsidies but this is supported politically because politicians take the view that railways are the infrastructural lifeblood of the nation. Aviation on the other hand is screwed for every cent that the Government bodies can impose and yet we are still unable to get the standard of services or facilities that we require.

Every sector of aviation has its role to play in the development of our nation yet Government is willing to condone the strangulation of certain sectors of our industry. On the one hand Government is willing to condone, even encourage, the FAC and the CAA to place restrictions on business aircraft access to our airports and yet it preaches about the lack of competitiveness and efficiency of our business sector. The ABAA has a question for the Government and more particularly individual politicians:

Would the Government, and particularly senior Cabinet members, be able to carry out their busy schedules, both domestic and international, without access to the RAAF VIP fleet?

The RAAF VIP fleet is about to re-equip with a number of Falcon 900s to take it into the 21st century. The ABAA applauds this development but the Prime Minister and his senior colleagues may care to reflect on how they may feel if the VIP fleet faced the same restrictions as the ABAA members. From their lofty positions, they may claim privilege and priority, which they receive, but what about the corporate aircraft user?

The truth of the matter is that the Government would be paralysed if it faced the same type of restrictions as our business aircraft users.

The ineffectiveness of Federal Government aviation policy is now affecting every sector of our industry. The farmer who, in the past, used his aircraft to do business in the city is severely restricted. The commuter airlines who serve our vast rural nation are being stifled. The tourism industry which is being sold as our great economic saviour is showing signs of faltering. All due to ineffective aviation policy. The CAA and the FAC claim that they are merely doing what they can with the tools that the Government has given them. Their independence from political control is clearly not possible and, therefore, the ABAA believes that it is time for a fresh look at the whole relationship between the aviation industry and the Federal Government.

It is clear to all observers that the Federal Government, through a number of less than capable Ministers, has been unable to cope with the aviation sector. It has slipped on every ‘banana skin’ that exists and this discomfort further manifests itself with its difficulties over the future of both Australian Airlines and Qantas. Indeed, it could be likened to a situation where a corporation buys a business for which it has no synergy or compatibility. The Federal Government clearly has no synergy with the aviation industry.

Is it not, therefore, time for the Federal Government to withdraw from all aspects of aviation except for its statutory regulatory role in both international and domestic aviation. The ABAA has concluded after lengthy consultations with the CAA, FAC and Department of Transport that the present arrangements are not acceptable.

The CAA takes the view that the industry complains about whatever the CAA does. This may be true but as the purchaser of the service we have the right to complain when the provider is not giving service according to our needs. The CAA seems to think that it knows better what the industry should have than the industry knows itself.

The FAC has been presented with assets which are, in some cases, too highly valued and has impossible constraints on what it may do. Although it has shown some independence, it is still an instrument of Federal Government policy.

The Department of Transport cannot come to grips with the implications of a fast moving industry. They are still trying to cope with the fact that we have 1980s A320 aircraft operating in an environment which is more suited to the Constellation. Indeed, many of the policymakers do not know the difference between an A320 and a Constellation.

We would, therefore, suggest that the Federal Government should walk away from its responsibilities other than those which are regulatory.

As far as the airports are concerned they could be jointly controlled and administered by local business and government interests. In the case of Sydney, the State Government in concert with local business and users should form the Board of Administration and thus direct its policy. As the future of Sydney Airport will directly affect the competitiveness of Sydney as a city, this is entirely logical. Now that the FAC has established autonomous administrative units at each of its airports, this could be achieved relatively easily. There is nothing really new in this suggestion as this works particularly well in the USA and Europe. The local determination of priorities and needs is far preferable to the remote interference of disinterested people from Canberra.

As far as the CAA is concerned we foresee that it should only provide Air Traffic Services and regulatory services in accordance with an updated regulatory system. The CAA should be taken out of the Public Service and the ABAA acknowledges that steps are already being taken in this direction. We would also like to see a situation where the Board of the CAA and therefore its policy direction is not controlled by Federal Government. We would suggest that a Board which included some industry nominees would serve our industry rather better. The flaw in the present arrangement is that the Board is Government appointed and, therefore, Government controlled.

The fundamental change is that control of our airports should shift from disinterested Federal politicians to local interests. The ABAA has already discussed this proposition with the NSW State Government and will continue to push for its progression with other interests.