A tough year ahead?

On speaking with a number of regional operators it is clear that 2009 will be a difficult year. That being said, operators will display their usual resilience in providing safe, reliable aviation services to regional and remote Australia. Given the difficult economic outlook the RAAA calls on the federal government to show strict discipline in the charges it applies to the industry through CASA and Airservices Australia (AsA).

The Rudd government has been fearless in its support of the financial and car-making industries, underpinning them with billions of taxpayers’ dollars. The Infrastructure Audit has also recommended substantial government investment in every transport sector except aviation. It is clear that there will be no stimulus package for aviation so, at the very least, government charges applied to regional operators during 2009 should be kept to a minimum. To do otherwise in the current economic environment will drive some operators and their suppliers to the wall given that most regional operators budget on a 5-10% profit in a good year. In the current economic climate increased or unnecessary government charges will reduce these tight margins dramatically.