A productive opportunity

Even though the government wishes to limit the scope of the inquiry to the major airports, they are not the only culprits in gouging regional airlines. Some regional airports have surpassed their larger kin in their poor treatment of regional operators. And to be fair, some of the major airports have offered considerably better service and pricing structures than their regional cousins.

Best practices examples should be heard alongside the worst excesses that private monopolies can sometimes produce.

Unfettered private control of major aviation infrastructure can encourage brutal monopoly behaviour. Private ownership can also encourage investment and innovation, but access to the airport for the operators must be on fair and reasonable terms.

The right balance has not yet been struck because operators must use airports to stay in business. Airport owners on the other hand may have access to multiple income streams through retail rent and operations, car parking and taxi fees to name a few. In other words, aviation is only part of their business focus, whereas it is the operator’s entire commercial raison d’etre.

We need to be careful to ensure that airports do not become some sort of commercial village where aviation is ultimately viewed as a secondary activity. Excessive retailing and development will cause vehicle traffic challenges that will be very costly to solve. Commercial buildings can encroach on airport land to the extent that buffer zones between an aircraft runway excursion and something dangerously solid are reduced to the bare minimum. Finally, what are the turbulence effects on aircraft of new buildings close to runways? Currently there are no national or international turbulence standards, so building placement and design are left to the judgment of the airport owner once the splay and height restrictions are met. There is an obvious and potentially dangerous conflict of interest.

It is noted that the Department of Infrastructure and Transport is now taking this matter seriously and is investigating building generated turbulence.

Airports and regional operators are natural partners and yet often they are antagonists.

Much of this resentment stems from a perception that airports are acting as local monopolies.

The privatisation of airports has been problematic at best and seriously retrograde at worst.

Governments of all persuasions must be extremely careful when they offer public, national infrastructure for sale. The market has little or no conscience and will grab a legally offered monopoly with both hands.

It is positive that the government is looking closely at the current airport regulatory model although it is disappointing it has sought to restrict the scope of the inquiry. However, in a democracy all relevant matters can be put before this inquiry.

Regional operators are keen to be heard and will be expressing their views in detail.

The inquiry is a chance to examine what is happening between the airport owner and the regional operator, and between the airport and the travelling public. This is a strategic opportunity to redress the balance.

We must not waste it.