This inquiry has just been announced:
LEGISLATIVE COUNCIL
STANDING COMMITTEE ON STATE DEVELOPMENT
Inquiry into regional aviation services:
That the Standing Committee on State Development inquire into and report on the provision of aerial regular passenger transport (RPT) services to regional centres in New South Wales,
and in particular:
1. Cost of access to Sydney Airport, regional New South Wales airports and other landing fields including:
a) airport operator landing fees imposed at various airports and services and facilities included in those fees;
b) methodology for calculating landing fees for different classes of aircraft.
2. Financial management and viability matters impacting on RPT operators, including:
a) economics of operating various types of aircraft, including modern single engine turbine compared to older twin engine piston aircraft;
b) impacts of compliance costs, including per passenger costs;
c) suitability of “hub and spoke” systems for potential routes for smaller passengernumbers;
d) the viability of passenger loading for different classes of aircraft.
3. Economic impact on regional communities of gaining or losing RPT services, including:
a) the local business community;
b) the impact on general aviation and regional airport management of the gain or loss of RPT services to regional centres;
c) the potential for future economic development;
d) impacts for local, state and Federal governments, including licencing
arrangements for services less than 50,000 passengers per annum.
4. Potential for development of future modern RPT aviation including:
a) opportunities for regional aviation manufacturing and servicing;
b) the development and supply of sufficient numbers of trained and skilled aviation personnel;
c) local, state and Federal government arrangements for staff travel;
d) opportunities for dual use RPT services to include both freight and passenger legs on the same routes.
5. Any other matter relating to the provision of aerial regular passenger transport services.
And some of the reasons for this are shown in Ben Sandilands article:
NSW regional Brindabella's turbo-props grounded by CASA | Plane Talking