Page 22 - AA 2018_11

AIRPORT development by Airservices and

airport operators as exacerbating
cost and complexity burdens (notably
absent was a discussion about drones).
Capital city airports too are
certainly not immune from
PRESSURES disagreements about aeronautical
fees and charges. Virgin Australia
has suggested in its submission to
the Productivity Commission public
inquiry into the Economic Regulation
of Airports that the “cost of airport use
is becoming an increasingly urgent
issue … as these charges have risen,
and are likely to continue to increase,
inappropriately in the absence of any
Airports large and small face a range of pressures, challenges and effective constraint on airports.”
On the other hand, Sydney
opportunities. So what are the emerging trends, driven by financial Airport expressed concern in its own
submission about “the ability and
constraints and emerging technologies, that face this critical practice of airlines, upon the expiry
of a negotiated contract or lease, to
sector of the aviation industry? continue using the airport while short-
paying or refusing to pay for airport
services”. And Northern Territory
WRITER: KEITH TONKIN Airports in its submission to the same
Inquiry, concerning the expiry of its
long-term pricing agreement with
Ownership, management Aeronautical fees and charges Qantas Group, stated that “Qantas
and oversight Airport owners are increasingly Group has refused to pay the 2.5 per
A significant number of airport owners focused on balancing their cent increase on the basis that it does
are thinking hard about the costs aeronautical expenses budgets while not pay charges it does not agree to”.
and benefits of owning and operating aircraft operators continue to face
an airport, and vigorously debating seemingly never-ending financial Aircraft landing areas (ALAs)
their tolerance for operational risk, challenges, with the end result of Aircraft landing areas, which are not
establishing expectations about significant tension between the two regulated by CASA, have traditionally
compliance, trying to formalise their parties. provided a place for private pilots
vision for its future and considering There is a widespread desire to operate their aircraft free from
appropriate management and to attract general aviation back to the seemingly onerous shackles of
ownership models. regional airports, but that comes into long-term financial sustainability
A current example is Moira conflict with the need to increase, or at (read landing and access fees) and
Shire Council in Victoria, which least impose, airport fees and charges, the need for strict compliance with
is consulting the community on as the mostly council-owned airports appropriate design standards and
the proposed sale of Yarrawonga attempt to repair weak financial rigorous operational management and
aerodrome, with a final decision due positions. oversight.
to be made in mid-December. This As has been widely reported, earlier The boom in recreational aviation
proposal has generated much interest this year the City of Wagga Wagga flying has led to greater activity and
in the general aviation community, proposed to implement some fees at development at some ALAs, where
which has expressed fears of increased Wagga Wagga Airport, but the local lower costs, unconstrained airspace
fees and charges. aero club actively resisted and caused and a relaxed operational environment
Some councils have a very firm council to reconsider. contrast with the situation at most
view, or are at the very least querying As a result, the Aircraft Owners larger, regulated airports. This trend
that they should not be acting as and Pilots Association (AOPA) is expected to continue as the scale
a landlord, and have therefore decided to establish a campaign ‘There is a and scope of recreational aviation
committed to selling development office in Wagga Wagga, which is increases.
sites rather than leasing them. Deputy Prime Minister and Minister widespread Local governments often support
On the other hand, Tamworth for Infrastructure and Regional the ongoing cost of operation of ALAs
Regional Council is expertly managing Development Michael McCormack’s desire to because they provide a community
its airport as an enterprise and actively electorate, so that it can directly benefit, by supporting aeromedical
acquiring land around the airport engage with him and advocate its attract evacuation, aerial firefighting and
to protect it for long-term future position. other emergency services. There
development opportunities (including Then in July, the Australian general may also be a small economic
international freight). GA community held a summit benefit derived through employment
Operationally, more airport owners in Wagga Wagga and delivered a aviation at flying schools, maintenance
are considering contracting out the number of resolutions, citing cost services and other aviation-related
day-to-day management of their impositions, operational restrictions back.’ businesses, along with operational and
airport to professional managers. and inappropriate infrastructure discretionary visitor expenditure.

22 AUSTRALIAN AVIATION