Economic opportunity

The AAA recently released a report on the economic and social contribution of Australian airports, which found core and precinct airport activities add an impressive $34.6 billion to the economy each year.

That equates to two per cent of Australia’s GDP – a similar contribution to that agriculture.

Just as agriculture created a wave of prosperity many years ago, our airports are now creating new tourism and trade opportunities across the country.

The report found airports support the generation of more than 206,400 jobs, almost 90,000 more than just seven years ago.

In that time, the value added by core airport activities to the economy also rose 53 per cent.

This significant growth highlights the transformative change we have seen across our airports since many were privatised 20 years ago, unlocking access to funds and empowering airports to invest to support the needs of their city and state.

In the last 10 years alone, airports have invested $11.5 billion in improvements, improving efficiency and enhancing the customer experience.

As a result, we have seen new tourism markets uncovered – and with them, new trade opportunities have emerged.

The report found airports’ impact on tourism is particularly important, with 97 per cent of international tourists to Australia arriving at our airports.

Airports supported the generation of $32.3 billion in tourism activity and facilitated 8 million international passenger trips to Australia.

This strong contribution was in part a result of the significant growth in international passenger numbers, highlighting the value airports have delivered as they’ve worked to secure additional routes and markets.

While international traffic movements remain primarily focused on our major airports, we have seen international passengers travelling to more destinations in Australia as airports develop strategies to attract international carriers.

This has not only contributed to the overall growth of international passengers, but has ensured the economic benefits they bring with them are more evenly distributed across the country.

Combined, the report findings show the growth and success of our airports is intrinsically linked to our economic strength as a nation. And with larger aircraft and emerging technologies presenting new opportunities for the future, their remains a great deal to be excited about.

The report is available for download at airports.asn.au.

‘Airports have invested $11.5 billion in improvements.’

Political opportunism

New security screening requirements would be hugely damaging

The RAAA understands that the government is now seriously considering introducing enhanced screening procedures for all passengers and their baggage at regional, rural and remote airports.

This is in spite of the excellent intelligence-driven and risk-based approach applied to regional airport security over the past years.

By way of argument, everyone can see that the current targets of choice are to be found in mass gatherings. One would have thought that a few people waiting at Bullamakanka for the weekly air service would hardly rate as an attractive mass gathering target!

Furthermore, the impact to cargo aircraft and cargo screening will have significant and far-reaching logistical consequences should the government propose to introduce additional screening methods to the current model.

One of Australia’s largest air freight and logistics conglomerate which moves nearly two million items per week within its domestic air operations would not feasibly be able to implement additional screening mechanisms without significant disruptions to the community.

Should the government implement such onerous requirements, the flow on effect to regular public transport and regional operators who handle cargo would mean these operating costs would likely be absorbed by regional carriers who are already operating on slim margins, placing even further strain on the freight industry.

Therefore one can only view this attack on regional communities as political opportunism by a new monolith – the Department of Homeland Security – wishing to justify its presence and make its mark early.

But its effects will be keenly felt by relatively few voters in the bush.

Smaller communities (perhaps those with less than 30,000 passenger movements per year) will likely lose their air service completely and every regional community that monitors its airline passenger numbers will know who they are.

Regional communities are not in a position to absorb additional security measures and neither are the regional airlines. Thus any additional increase in regional airfares would be unsustainable and quickly render the airline service unviable.

Therefore the only fair way to fund this proposed policy is for the costs to be shared equally by every Australian domestic air traveller, or the public purse.

However, perhaps the best way forward as a reasonable and acceptable compromise, would be to examine and adopt the American approach. They have a program called the ASSIST program, whose goal is to strengthen the nation’s aviation system by establishing the best possible security solution in the unique context of that airport’s location.

‘One can only view this attack on regional communities.’