Vag277
19th Dec 2012, 00:18
I wrote this 10 years ago and we still have not learned!!
General Aviation –its own enemy?
“Itwas realised by the committee that expansion of the order of recent years couldnot continue indefinitely and that some form of consolidation would finally hitthe industry. This has indeed been most general throughout Australia and it appears to haveaffected the eastern States more than WA. There is a need for new thinking andthe industry, during the next years or so, will no doubt witness substantialchanges.”
Many contributors here suggest that thedownturn in GA has its genesis in the actions of governments and commercialenterprises and the resulting increase in costs and loss of facilities. Theseconcerns also included what has become almost a tradition in GA – the statementthat it was all better in the days of DCA and Sir Donald Anderson.
I believe that it is time that GA joinedthe beginning of the 21st century and stopped languishing in themiddle of the 20th. Government policies, public expectations, the economy and businesseffectiveness have changed. Unfortunately, a culture within GA of blamingeveryone else for the effects of these changes is blinding us to what we mustdo to catch up.
First, let’s understand the significancetoday of the era of DCA and Sir Donald Anderson. Over the period of Anderson’s tenure as DirectorGeneral, (1956-1973) there are some aviation and significant non-aviationfactors that need to be considered:
· the country as a whole wasemerging from the economic effects of a global war.
· regional infrastructure(including sealed roads) was limited and motor vehicles were only justbeginning to approach the comfort and capability we enjoy today.
· the Australian aircraft fleet grewfrom 903 aircraft to approximately 4,000. Today there are in the vicinity of 17,000when the RA-Aus fleet is included.
· unemployment from 1940 to 1970was between 1%-3%
· the share of Gross DomesticProduct from mining went from 50% to 70% with attendant growth in air travel toremote areas
· the proportion of GDP fromagriculture declined from nearly 20% to less than 5%
In 1959 the Parliament passed a Billallowing the granting of leases for businesses on airports. This was intendedto ensure some economic return on the funds invested in airport development. Itwas also a continuation of the cost recovery process begun in 1947 when airwayscharges were introduced for the first time.
By the end of the sixties things werebeginning to change even more. The Federal Government announced that afterseveral years of discussing the issue, the flying training subsidy scheme wouldbe closed down. This had been in place in various forms since 1924. Thesubsidies were introduced to encourage the early development of the industry,then to support military training and then again to support growth in the postwar period.
With the removal of the restrictions on trainingarising from funding eligibility rules and the creation of a level (althoughperhaps uneconomic) playing field the number of flying schools began toincrease beyond the former aero club group of 43 with 177 aircraft. The recordsof the aero clubs at the time reflect concern over considerable loss ofearnings as a result of the loss of the subsidised training of commercialpilots and many were recording financial losses.
Since the early 1970s there have been manymore changes in the world in which we live and operate. A succession of governments,from both sides of politics, have identified public support (or at least only fractured opposition) to the concept ofcost recovery for, and privatisation of,a huge range of services and facilities. These were previously accepted as theresponsibility of government with funding coming from the entire tax payingpublic. However, Australian society was changing, the economy had blossomed andindividuals who had not seen economic depression – the baby boomers- wereflexing their political and economic muscles.
One of the most significant changes was thedramatically increasing range of choice in almost all aspects of life. Thiscould be perceived as the start of a new world for general aviation. It ispossible that understanding and dealing with such changes is the key to successin general aviation.
With this increase in choice, together withincreasing disposable incomes, marketing of opportunities to buy newexperiences has blossomed. Whether they be in domestic or international travel,sports cars, extreme adventure sports or substantial mortgages, marketing hasbecome critical. Despite the marketing of almost anything appearing everywherewe look, when did you last see an advertisement of any sort for flying trainingor aircraft charter outside an aviation magazine or tourist brochurerack? It is a fundamental rule of any business selling a product, that no onewill buy the product if they don’t know what it is or where to find it.
People with businesses in general aviationregularly lay blame for their parlous economic state on government, theregulator, big business or any other target of opportunity. Sure, better roads,better motor cars, airfares lower than ever dreamed of in the ‘70s and severalyears of drought have had dramatic impacts on many parts of GA. In some casesthose reductions in activity might be irrecoverable because what displaced themis cheaper and more convenient. Despite this, there are general aviationbusinesses that are succeeding and growing. The fleet of aircraft, which grewfrom 900 to 4,000 in the Anderson/DCA era of 17 years, has grown to around14,000 in the subsequent 30 years and people still learn to fly.
GAmight be succeeding in spite of itself. When was the last time the participantsin industry worked together to:
· identify and quantify crediblythe contribution the sector makes to the economy and community well being?
· promote aviation as achallenging, rewarding and enjoyable recreation?
· create an impression of being awell organised, professional and enthusiastic group?
Itis unlikely that we will see sustained and widespread improvement if we do notunderstand and penetrate the market represented by the entire population ofwhat is a very prosperous country.
To provide some credence to these ideas, thequote at the beginning came from the annual report of the Royal Aero Club of WAin 1967-68.
Bibliography
Ayris, C.Wings of Chamge Royal Aero Club of Western Australia, Perth 1999
http://www.casa.gov.au/casadata/register/graph.htm
http://www.treasury.gov.au/documents/110/PDF/round3.pdf (http://www.treasury.gov.au/documents/110/PDF/round3.pdf)
Parnell, P. &Boughton, T. Flypast AGPS Press , Canberra 1988
General Aviation –its own enemy?
“Itwas realised by the committee that expansion of the order of recent years couldnot continue indefinitely and that some form of consolidation would finally hitthe industry. This has indeed been most general throughout Australia and it appears to haveaffected the eastern States more than WA. There is a need for new thinking andthe industry, during the next years or so, will no doubt witness substantialchanges.”
Many contributors here suggest that thedownturn in GA has its genesis in the actions of governments and commercialenterprises and the resulting increase in costs and loss of facilities. Theseconcerns also included what has become almost a tradition in GA – the statementthat it was all better in the days of DCA and Sir Donald Anderson.
I believe that it is time that GA joinedthe beginning of the 21st century and stopped languishing in themiddle of the 20th. Government policies, public expectations, the economy and businesseffectiveness have changed. Unfortunately, a culture within GA of blamingeveryone else for the effects of these changes is blinding us to what we mustdo to catch up.
First, let’s understand the significancetoday of the era of DCA and Sir Donald Anderson. Over the period of Anderson’s tenure as DirectorGeneral, (1956-1973) there are some aviation and significant non-aviationfactors that need to be considered:
· the country as a whole wasemerging from the economic effects of a global war.
· regional infrastructure(including sealed roads) was limited and motor vehicles were only justbeginning to approach the comfort and capability we enjoy today.
· the Australian aircraft fleet grewfrom 903 aircraft to approximately 4,000. Today there are in the vicinity of 17,000when the RA-Aus fleet is included.
· unemployment from 1940 to 1970was between 1%-3%
· the share of Gross DomesticProduct from mining went from 50% to 70% with attendant growth in air travel toremote areas
· the proportion of GDP fromagriculture declined from nearly 20% to less than 5%
In 1959 the Parliament passed a Billallowing the granting of leases for businesses on airports. This was intendedto ensure some economic return on the funds invested in airport development. Itwas also a continuation of the cost recovery process begun in 1947 when airwayscharges were introduced for the first time.
By the end of the sixties things werebeginning to change even more. The Federal Government announced that afterseveral years of discussing the issue, the flying training subsidy scheme wouldbe closed down. This had been in place in various forms since 1924. Thesubsidies were introduced to encourage the early development of the industry,then to support military training and then again to support growth in the postwar period.
With the removal of the restrictions on trainingarising from funding eligibility rules and the creation of a level (althoughperhaps uneconomic) playing field the number of flying schools began toincrease beyond the former aero club group of 43 with 177 aircraft. The recordsof the aero clubs at the time reflect concern over considerable loss ofearnings as a result of the loss of the subsidised training of commercialpilots and many were recording financial losses.
Since the early 1970s there have been manymore changes in the world in which we live and operate. A succession of governments,from both sides of politics, have identified public support (or at least only fractured opposition) to the concept ofcost recovery for, and privatisation of,a huge range of services and facilities. These were previously accepted as theresponsibility of government with funding coming from the entire tax payingpublic. However, Australian society was changing, the economy had blossomed andindividuals who had not seen economic depression – the baby boomers- wereflexing their political and economic muscles.
One of the most significant changes was thedramatically increasing range of choice in almost all aspects of life. Thiscould be perceived as the start of a new world for general aviation. It ispossible that understanding and dealing with such changes is the key to successin general aviation.
With this increase in choice, together withincreasing disposable incomes, marketing of opportunities to buy newexperiences has blossomed. Whether they be in domestic or international travel,sports cars, extreme adventure sports or substantial mortgages, marketing hasbecome critical. Despite the marketing of almost anything appearing everywherewe look, when did you last see an advertisement of any sort for flying trainingor aircraft charter outside an aviation magazine or tourist brochurerack? It is a fundamental rule of any business selling a product, that no onewill buy the product if they don’t know what it is or where to find it.
People with businesses in general aviationregularly lay blame for their parlous economic state on government, theregulator, big business or any other target of opportunity. Sure, better roads,better motor cars, airfares lower than ever dreamed of in the ‘70s and severalyears of drought have had dramatic impacts on many parts of GA. In some casesthose reductions in activity might be irrecoverable because what displaced themis cheaper and more convenient. Despite this, there are general aviationbusinesses that are succeeding and growing. The fleet of aircraft, which grewfrom 900 to 4,000 in the Anderson/DCA era of 17 years, has grown to around14,000 in the subsequent 30 years and people still learn to fly.
GAmight be succeeding in spite of itself. When was the last time the participantsin industry worked together to:
· identify and quantify crediblythe contribution the sector makes to the economy and community well being?
· promote aviation as achallenging, rewarding and enjoyable recreation?
· create an impression of being awell organised, professional and enthusiastic group?
Itis unlikely that we will see sustained and widespread improvement if we do notunderstand and penetrate the market represented by the entire population ofwhat is a very prosperous country.
To provide some credence to these ideas, thequote at the beginning came from the annual report of the Royal Aero Club of WAin 1967-68.
Bibliography
Ayris, C.Wings of Chamge Royal Aero Club of Western Australia, Perth 1999
http://www.casa.gov.au/casadata/register/graph.htm
http://www.treasury.gov.au/documents/110/PDF/round3.pdf (http://www.treasury.gov.au/documents/110/PDF/round3.pdf)
Parnell, P. &Boughton, T. Flypast AGPS Press , Canberra 1988