Vag277, the bit that is left out of your excellent summary is that it neglects the emergence and potential growth of new light aviation markets while concentrating on the “traditional “ markets, such as pure regional transport which it is argued, are in decline due to better roads, etc. They may well be but what about new markets?
To put that another way, you argue that there is increased choice and competition for disposable income. Correct, but where are the competitive aviation products that should be emerging here in competition as they are overseas?
For example: transport for hunting/fishing/hiking/skiing parties? Aerial sightseeing? Aerial taxi/commute services? Aerial food and wine touring? Aerial camping/safaris/touring? Air parks - residential. Medical services by air. Computer services by air. Business services by air. There must be more!
The answer is that over regulation of aviation in Australia prevents this form of business investment and the jobs and the taxation revenue and the economic growth. Just go to the US or NZ to see what I mean!