Fighting for survival

Innovations keep lifeline regional airports open – and viable

Innovative strategies are being undertaken in some regional communities to increase revenue and to offset the high capital and on-going operational costs of their airport.

Many regional councils are under great stress to meet the costs of operating and maintaining their airport assets, which often generate low levels on income. A report published by Deloitte Access Economics (2012) stated that 50 per cent of regional airports were operating at a financial loss. Relatively high costs for capital –needed to repair and upgrade infrastructure, compliance – to achieve and retain CASA certification and operations means that many regional councils are required to cross-subsidise the running of their airports. This cross subsidisation needs to be balanced against other competing priorities that they have.