Page 90 - AA 2018_11

Townsville’s redevelopment
is designed to overcome
capacity issues while
making the airport more
modern and user friendly. qal

Coincidentally, the QAL Group Inquiry into the Economic Regulation
CEO has an equally diverse of Airports – around perceptions
professional history. about the relationships and roles of
At first take it might seem strange airports and airlines “and particularly
that the person in charge of Australia’s the perception that airports control
largest regional airports operation the discussion with their airline
does not have a background in partners.
aviation. But then Mills has plenty “The Productivity Commission is
of other experience to offer, leading focusing on whether airports exercise
the team driving QAL’s consistent market power in their activities.
performance since taking the reins in My view, particularly with regional
2014. airports, is that it’s pretty clear we
His CV includes qualifications in don’t.”
business, technology and finance, with At the same time, QAL accepts that
roles in tourism, leisure and property while regional airfares can be high – as
development including Brisbane’s highlighted in evidence to the ongoing
South Bank and the Gold Coast Senate Inquiry (into the “operation,
Commonwealth Games Village. regulation and funding of air route ‘My view, calculated based on these capital and
“That’s why I was attracted to join service delivery to rural, regional and operating costs, divided by forecast
QAL because it was an opportunity remote communities”) – it is not, particularly passenger numbers.
that hit on a few key areas I had been as many suggest, because of airport “These charges are generally
involved in previously,” he said. charges. with regional reviewed when airports are
While early on he faced something “As highlighted in our Senate considering the upgrade or
of a learning curve, he found his Inquiry submission, airport charges airports, redevelopment of facilities to
experience in other areas translated are derived from the capital costs accommodate airport growth.
easily into the world of airport of delivering and updating airport is that it’s “At our airports, our focus is on
management “whether that’s infrastructure that is both necessary increasing the volume of passengers,
property, general operations or yield and legally required, and represents pretty clear and it is volume that delivers greater
management… .” a small portion of the airfare. Airport benefits to rural, regional and remote
He said one thing that did take charges are typically about five to we don’t.’ communities.”
It is also a focus on asset stability
him by surprise goes to the heart of 10 per cent of the average airfare. which takes Mills back to the strategy
the current Productivity Commission “Specifically, passenger charges are CHRIS MILLS

90 AUSTRALIAN AVIATION