Connection points

Unfortunately, this inevitably results in a number of regional aerodromes not having access to the funding they require to maintain and improve aeronautical infrastructure.

In the worst cases, this can mean an inability to maintain safe operations and ultimately some aerodromes may be forced to close.

With this in mind, the AAA is pleased to announce that it has commissioned ACIL Allen to conduct a review of regional airport infrastructure across Australia. The purpose of the project is to demonstrate the critical importance of regional aviation to Australia’s economy and its regions. The project will involve conducting an economic impact assessment, investigating the economic value contributed by regional airports across the country, as well as assessing their future infrastructure maintenance and upgrade needs. The project will aim to demonstrate the critical importance of regional aviation to local communities and quantify the funding gap that exists for regional aerodromes simply wishing to maintain viable ongoing operations.

The AAA hopes to use the findings of this report to form the basis of an ongoing advocacy campaign to state and federal governments, with the goal being to provide additional funding options for regional aerodromes to undertake essential aeronautical infrastructure maintenance and upgrades.

This project will build on previous work the AAA has commissioned, which looked at the overall economic and social contribution of Australia’s airports (Deloitte Access Economics report, 2012) and the myths, facts and challenges facing regional airports (2012).

The AAA believes this project will also complement the recently completed Australian Infrastructure Audit report. The report was developed through Infrastructure Australia (and also utilised ACIL Allen) and examined the drivers of future infrastructure demand, particularly population and economic growth. The audit provided a topdown assessment of the value-add of infrastructure, considered the future demand for infrastructure over the next 15 years, and delivered

Aerodromes compete with other community infrastructure projects and services.

an evidence base for further gap analysis, long-term planning and future investment priorities.

At a high level the audit found that without action Australia’s productivity and quality of life will be tested, with population and economic growth set to cause increasing congestion and bottlenecks in our infrastructure. It found that major reforms are needed to improve the way we plan, finance, construct, maintain and operate infrastructure to ensure it can underpin gains in Australia’s productivity in the decades ahead, and contribute to economic growth. In relation to small regional airports specifically, the audit concluded that these airports are unlikely to have the throughput to cover their maintenance and potential capital costs and governments will need to prioritise their outlays in support of these airports.

The AAA project will draw on ACIL Allen’s involvement in the Australia Infrastructure Audit to further explore the inability of small regional airports to access appropriate funding for infrastructure maintenance and upgrades. But more importantly, the AAA project will demonstrate the value that those airports provide to their local community and surrounding region with the essential services they facilitate, through to the economic and social connectivity they provide with wider Australia.

As part of the project, the AAA (with the assistance of ACIL Allen) will be undertaking a comprehensive, nation-wide information gathering and data collection exercise with its regional airport members before the end of the year. This will be a critical step in the process that will form the evidence base to allow for the underpinning economic analysis for the project. The AAA will be working closely with its members to ensure that the information we are seeking to capture is readily accessible and provides an accurate representation of the financial and operational situation at our regional airports. The AAA is aiming to finalise and release the report in the first quarter of 2016.

The AAA understands the important role that all airports play in providing essential transport infrastructure for their local regions. Aviation is an essential component of Australia’s transport mix, due simply to the sheer geographical distances that need to be overcome on a daily basis. For many small regional communities, the airport is the sole connection point to the rest of the country and it is essential that government recognise how important it is to keep these connection points open. The AAA is committed to ensuring that regional airports are adequately supported and funded by governments so they may continue to facilitate safe and viable aviation operations, while providing that essential economic and social connectivity.