Regional challenges

Here, JetGo launched the first airline services for the airport in several years. They proved popular, with passengers making the most of the ability to fly direct to Melbourne or Brisbane.

It shows services like these have strong potential to deliver for airlines, while creating economic opportunity and vital connections for the community.

It is therefore very important that the industry does not lose sight of the very positive changes the airline has delivered.

However, the news also confirmed what many of us already know: it’s tough going up against the domestic market duopoly and an established regional operator.

With many regional centres only served by one airline, the market power of existing operators makes it challenging for new entrants. It is a challenge many of our members know only too well, and one that’s not easily solved.

The current Senate enquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities is examining the issue of regional air routes and airfares. The market power of our established airlines has already been a topic of debate in its public hearings.

In the AAA’s submission to the inquiry, we shared member feedback that some regional airports had been asked by airlines to reduce charges off the back of a threat to withdraw services. That’s a reflection of the power established operators wield, and the difficulty airports have in creating space for a more competitive landscape.

The inquiry process may provide some insight into how we can support the success of new entrants in the regional market to ensure our communities remain connected and thriving for years to come.

For now though, our impacted members have focused on reinstating services as quickly as possible. They may need to look to other airlines to meet their community’s needs – and they may need to once again make the case for their communities.

When they do, they will be looking to existing operators to step up to the plate. It is only through genuine partnership between regional airports and the airlines that serve them that we can ensure sustainable air services over the long term. Our regions depend on them.

They may need to once again make the case for their communities.’

Alert and alarmed

Counting the costs of new regional airport screening

On federal budget night the aviation industry learnt that the government will introduce enhanced screening procedures for all passengers and their baggage at a number of additional regional airports. This news was surprising, and the timing of the announcement disappointing, especially given the excellent intelligence-driven, risk-based approach applied to regional airport security over the past several years.

By way of argument, a review of the current National Threat Assessment would most likely highlight that the current targets of choice are to be found in mass gatherings. Mid-city streets and boulevards, large shopping centres, train stations, ferry terminals, major airport check-in areas etc, and this has driven increased security in places such as central Sydney and Melbourne.

We suggest that a much lower number of people waiting at a rural airport for their air service, based on the current threat assessment, would not rate as an attractive mass gathering target!

While the total costs of this proposal are yet to be calculated by the Department of Infrastructure and Regional Development, the whole expense needs to be considered and not just the once-off capital expenditure to purchase the high-tech scanning and surveillance equipment and systems.

The RAAA is concerned that ongoing costs – the employment and ongoing training costs for specialised staff – will quickly outweigh the initial purchase and installation costs. Any additional increase in regional airfares to offset these costs would be unsustainable.

Instead, the only fair and reasonable way to fund this proposed policy is for the costs to be shared equally by every Australian domestic air traveller, or the public purse. Given that the people most likely to benefit from the ‘warm glow of security’ are the population at large, the funding source should be the latter – consolidated revenue.

However, as the RAAA continues to support both a secure and viable regional airline industry, we suggest that perhaps the best way forward as a reasonable and acceptable compromise would be to examine and adopt the American approach. The US has the ASSIST (Airport Security System Integrated Support Testing) program, whose goal is to strengthen the aviation system by establishing the best possible security solution in the unique context of that airport’s location. I would also add to the airports’ location… “and its operational environment”.

This approach would be aligned with a risk-based and intelligencedriven regime that would be broadly supported by the aviation industry.

The regional airline community would welcome any form of consultation with government policy and decision-makers on this emerging financial threat.

‘This news was surprising.’