Wirraway
5th Nov 2004, 16:35
Sat "Sydney Morning Herald"
Airports running regional areas into the ground
By Alexandra Smith
November 6, 2004
Low-cost air carriers Jetstar and Virgin Blue might be saving once struggling country towns, but their dominance has come at the expense of small regional airlines, which are being squeezed out of major city airports.
A summit of regional and industry leaders has called on the Federal Government to introduce tougher controls over the powerful monopoly airport owners to protect regional air services.
A report presented to the Regional Air Summit in Canberra said regional air services could help rural communities thrive, boosting unemployment and fuelling economic growth.
The National Institute of Economic and Industry Research found population growth rates had increased by 42 per cent in regional communities with a Qantas or Virgin service.
Regional communities with competitive air services had twice the economic growth rate of areas without air services and had better success in reducing long-term unemployment rates.
The head of the Regional Aviation Association of Australia, Brian Chandler, said action was needed to protect regional airlines that were battling to compete with the big players. "Regional airlines might operate smaller aircraft but they service more communities in Australia than their major domestic cousins," he said.
"Currently the profiteering interests of major airports can determine the quality of air services provided to regional communities, through access they grant to regional airlines. Clearly this needs to be addressed."
John Sharp, the former federal transport minister who chaired the summit, said the recent dispute between Australia's largest regional airline, Rex, and Sydney Airport highlighted the problems in the industry.
The airport has told Rex it will have to move to another section of the main terminal by the end of this month to make way for Virgin Blue to take over the former Ansett space.
"We think Rex is just the first cab off the rank and other regional airlines will face the same treatment as Rex as other airports like Melbourne and Brisbane expand," said Mr Sharp, who was the minister responsible for introducing the legislation to privatise airports in 1996.
"The importance of access for regional airlines cannot be underestimated," he said.
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Airports running regional areas into the ground
By Alexandra Smith
November 6, 2004
Low-cost air carriers Jetstar and Virgin Blue might be saving once struggling country towns, but their dominance has come at the expense of small regional airlines, which are being squeezed out of major city airports.
A summit of regional and industry leaders has called on the Federal Government to introduce tougher controls over the powerful monopoly airport owners to protect regional air services.
A report presented to the Regional Air Summit in Canberra said regional air services could help rural communities thrive, boosting unemployment and fuelling economic growth.
The National Institute of Economic and Industry Research found population growth rates had increased by 42 per cent in regional communities with a Qantas or Virgin service.
Regional communities with competitive air services had twice the economic growth rate of areas without air services and had better success in reducing long-term unemployment rates.
The head of the Regional Aviation Association of Australia, Brian Chandler, said action was needed to protect regional airlines that were battling to compete with the big players. "Regional airlines might operate smaller aircraft but they service more communities in Australia than their major domestic cousins," he said.
"Currently the profiteering interests of major airports can determine the quality of air services provided to regional communities, through access they grant to regional airlines. Clearly this needs to be addressed."
John Sharp, the former federal transport minister who chaired the summit, said the recent dispute between Australia's largest regional airline, Rex, and Sydney Airport highlighted the problems in the industry.
The airport has told Rex it will have to move to another section of the main terminal by the end of this month to make way for Virgin Blue to take over the former Ansett space.
"We think Rex is just the first cab off the rank and other regional airlines will face the same treatment as Rex as other airports like Melbourne and Brisbane expand," said Mr Sharp, who was the minister responsible for introducing the legislation to privatise airports in 1996.
"The importance of access for regional airlines cannot be underestimated," he said.
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