Much of the aviation industry goes about its work unheralded. cameron wilkes

Surviving not thriving

The aviation industry is being taxed and regulated within an inch of its life

The Australian aviation industry is somewhat schizophrenic. Qantas and Virgin dominate the main trunk routes and soak up most of the political capital. The former is back in the black and the latter is moving heaven and earth to catch up. From the average politician or person in the street’s point of view everything appears largely as it should be, climbing airfares aside.

However, the great mass of aviation operators and businesses in the middle of the industry go about their work of supplying their vital niche services to our regional towns and remotely located industries unheralded. Most are surviving but not thriving, and are too busy to worry about much more than keeping the wolf from the door.

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This is in stark contrast to Airservices, which has increased its staffing by 1,000 over the past five years, with close to 500 of those being administrative positions. It must be remembered that every cent of income that reaches Airservices is gleaned from the aviation industry. CASA has increased staffing from 650 in 09/10 to approximately 850 this year. Again, the large majority of CASA’s income is drawn from industry through fuel taxes and user pays regulatory services. It is noted that the CASA board has managed to cap staffing increases in recent months. PuttingRegionsexperienced industry people on these strategically important boards can pay dividends.

The ATSB has been relatively disciplined with around 100 staff carrying out the transport investigations. Given that they must investigate all serious aviation, maritime and rail incidents it would appear that a reasonable balance has been struck.

On one hand we have a booming government aviation sector living happily off the taxes raised largely from the aviation industry. On the other, regional RPT and charter is struggling to stay afloat, and private GA is about to evaporate. It is possible that private twin flying may have disappeared already. Other than heavy jets, the aviation industry is being taxed and regulated within an inch of its life.

It has not helped that most large airports and privately owned secondary/regional airports have instituted charging regimes that have sent commercial and private GA fleeing to more remote airfields. This has been a small boon for some towns but has added to the cost of doing business. The GA scene in the Sydney basin, our most populous region, is a ghost of its former self even though there has been a large local population increase.

If you are a budding entrepreneur watching our industry you may have considerable reason to pause. To start up and then stay

If you are a budding entrepreneur watching our industry you may have considerable reason to pause.

in business, you must achieve a return on investment within a reasonable period of time. Other than flight training and avionics, which are finally benefiting from a lower Australian dollar, it is hard to see where else the opportunities currently lie.

The mature parts of our industry will survive but we are in serious need of new aviation business blood, and passion will only sustain it for so long. In the 20th century aviation was at the cutting edge, attracting the best and brightest as well as those with a feel for financial risk. Somehow the Australian industry has morphed into something of a plodder, highly risk averse and completely over regulated.

We don’t need more regulation or more public servants. What we need is people wanting to participate in our industry, either commercially or privately. If they show any interest, we must not put barriers up but actively assist them to engage with an industry that still has considerable potential.

No-one knows yet what aviation will look like in 50 years but our y every sense. It is today’s aviation generation that must pass on a great legacy to the young and not be cowed by today’s burdens.

The government aviation agencies must be led by people who are industry enablers. Some are there already and some must be brought in urgently. The current situation between the industry and government sectors is highly unbalanced. The regulated and the taxed simply won’t take it any longer.

 

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