Airports running regional areas into the ground
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Airports running regional areas into the ground
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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ahhh, i remember the good ole days, there were commuter airlines servicing almost every town in NSW! i just cant believe its taken this long to finally figure out what has been happening! not only that, but the RTA is worried about the ever increasing numbers of trucks on the roads! wonder why!
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"...boosting unemployment..."
I think that should read "...boosting employment..."??
In the past 19 years over 100 rural towns in Australia have lost their regional airline service.
Woomera
I think that should read "...boosting employment..."??
In the past 19 years over 100 rural towns in Australia have lost their regional airline service.
Woomera
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The mainline operators aren't just impacting the regional airlines, but GA charter as well. And it probably goes on down the line to flying training too. It's so cheap to fly on the airlines and the airlines service such a wide variety of markets now, why should anyone pay huge amounts to get a license of their own?
I disagree with Brian Chandler. Providing market protection of any sort encourages inefficiencies and waste in the long run.
I do wish that some of these regional communities would get their heads out of the wool bales and wheat silos and realise there are other opportunities and industries besides the primary industries.
Instead of protection, I think the various governments would do well to encourage investment in better facilities. For example, assistance with investments on upgrades - RWY lighting, instrument approaches. At the same time, regional communities have to be a little more welcoming to the 21st century. They won't be able to justify the spending on better aviation facilities without a commensurate investment in promoting regional industries. One won't work without the other.
And...the regional airlines need to work more on selling their services and establishing partnerships and risk ventures with regional councils, businesses and industries. They still expect the customers to come to them. There is no one (as far as I know) allocated to assisting potential regional business centres work through and solve their problems. As far as I know (which isn't much), there is no one out selling their benefits to regional councils or working in partnership with any councils to encourage additional existing businesses to relocate that will provide flow-on benefits to aviation. They're all on good terms with the council members in their home base, but people in potential growth areas????...nada.
One thing I do know, if the regional airlines can't create and service their markets effectvely, then someone else will.
Off to wash my mouth out...
I disagree with Brian Chandler. Providing market protection of any sort encourages inefficiencies and waste in the long run.
I do wish that some of these regional communities would get their heads out of the wool bales and wheat silos and realise there are other opportunities and industries besides the primary industries.
Instead of protection, I think the various governments would do well to encourage investment in better facilities. For example, assistance with investments on upgrades - RWY lighting, instrument approaches. At the same time, regional communities have to be a little more welcoming to the 21st century. They won't be able to justify the spending on better aviation facilities without a commensurate investment in promoting regional industries. One won't work without the other.
And...the regional airlines need to work more on selling their services and establishing partnerships and risk ventures with regional councils, businesses and industries. They still expect the customers to come to them. There is no one (as far as I know) allocated to assisting potential regional business centres work through and solve their problems. As far as I know (which isn't much), there is no one out selling their benefits to regional councils or working in partnership with any councils to encourage additional existing businesses to relocate that will provide flow-on benefits to aviation. They're all on good terms with the council members in their home base, but people in potential growth areas????...nada.
One thing I do know, if the regional airlines can't create and service their markets effectvely, then someone else will.
Off to wash my mouth out...
Last edited by Lodown; 5th Nov 2004 at 23:15.
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Ultralights,
Why the increasing number of trucks on the roads?
Because the regional areas are not producing or requiring significant numbers of products that are: a) small b) expensive by size c) time critical to market; read, technology items. These are the criteria that favour aviation. Large, bulky, non-critical items in terms of time, favour truck and rail - read, primary industry products.
Additionally, communication services have improved and the road infrastructure has improved to such an extent that a 12 hour drive to the big smoke in the family car of 30 years ago has been cut in half today.
Country areas have a lot to offer to technology companies - security, cheap land, small fees, comfortable living. What they lack in general, is a large pool of highly educated workers and a scarcity of recreational activities. The transport issue is a relatively small cost.
Why the increasing number of trucks on the roads?
Because the regional areas are not producing or requiring significant numbers of products that are: a) small b) expensive by size c) time critical to market; read, technology items. These are the criteria that favour aviation. Large, bulky, non-critical items in terms of time, favour truck and rail - read, primary industry products.
Additionally, communication services have improved and the road infrastructure has improved to such an extent that a 12 hour drive to the big smoke in the family car of 30 years ago has been cut in half today.
Country areas have a lot to offer to technology companies - security, cheap land, small fees, comfortable living. What they lack in general, is a large pool of highly educated workers and a scarcity of recreational activities. The transport issue is a relatively small cost.
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ever since leaving QF i have been running and small transport company, and i have exclusive contracts with the music industry to move CD's and DVD's specifically small short notice and special stock orders), over the last 2 years, we no longer send stock using local air operators. simply because thses aircraft no longer fly there, hence we now use a lot of large vans with regular runs from syd to most town within NSW.
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Ultralights - The main reason you would not be able to move even small items efficiently by air is the the nature of the aeroplanes on the domestic short-haul routes today. Woth MTOW restrictions and space limitations on DH8 100 and 200 series, and SF340 aeroplanes if you get all the bags, the crew and their lunch on board then you are having a good day.
From what I have observed from the fringes, the main reason a large number of regional ports have gone West is the monstrous charges impose by major airports. The bugsmashers do not fit with their business plan and interfere with the high yeild big ole monsters that come from overseas.
Maybe it would be wise to introduce a strategy like LAX at Sydney with the little guys landing on a parallel runway in between the mains leaving the other 3 to heavier machinery.
It is rather nice to watch out your window at the Holiday Inn LAX and see a SF340 riding as wingman for a JAL 744.
Good airspace management too - but there is a whole new story!!
Ultralight - keep on keeping on. The bitumen Boeing is far more reliable than airfreight any day.
Best regards
EWL
From what I have observed from the fringes, the main reason a large number of regional ports have gone West is the monstrous charges impose by major airports. The bugsmashers do not fit with their business plan and interfere with the high yeild big ole monsters that come from overseas.
Maybe it would be wise to introduce a strategy like LAX at Sydney with the little guys landing on a parallel runway in between the mains leaving the other 3 to heavier machinery.
It is rather nice to watch out your window at the Holiday Inn LAX and see a SF340 riding as wingman for a JAL 744.
Good airspace management too - but there is a whole new story!!
Ultralight - keep on keeping on. The bitumen Boeing is far more reliable than airfreight any day.
Best regards
EWL
