Australian Aviation - July 2018

112 AUSTRALIAN AVIATION

T

he June announcement that

JetGo had entered voluntary

administration was a blow for

our regions, with scheduled

passenger (but not charter) services by

the airline suspended immediately.

A relatively new entrant, JetGo’s

RPT services had been welcome

additions for many regional centres

on the east coast, and the airline had

shown great vision launching jet RPT

services to communities not currently

served by an airline, with Illawarra

being a good example.

Here, JetGo launched the first

airline services for the airport in

several years. They proved popular,

with passengers making the most of

the ability to fly direct to Melbourne

or Brisbane.

It shows services like these have

strong potential to deliver for airlines,

while creating economic opportunity

and vital connections for the

community.

It is therefore very important that

the industry does not lose sight of the

very positive changes the airline has

delivered.

However, the news also confirmed

what many of us already know:

attracting and retaining new services

to the regions is tough.

With many regional centres only

served by one airline, the market

power of existing operators makes

it challenging for new entrants. It is

a challenge many of our members

know only too well, and one that’s

not easily solved, especially for those

airports trying to make the case for

new services.

The current Senate enquiry into

the operation, regulation and funding

of air route service delivery to rural,

regional and remote communities is

examining the issue of regional air

routes and airfares.

In the AAA’s submission to the

inquiry, we shared member feedback

that some regional airports had been

asked by airlines to reduce charges

off the back of a threat to withdraw

services. That’s a reflection of the

challenges regional airports face when

their revenues are being squeezed,

and the difficulty airports have in

creating space for a more competitive

landscape.

The inquiry process may provide

some insight into how we can

support the success of new entrants

in the regional market to ensure our

communities remain connected and

thriving for years to come.

For now though, our impacted

members have focused on reinstating

services as quickly as possible.

They may need to look to other

airlines to meet their community’s

needs – and they may need to

once again make the case for their

communities.

When they do, they will be looking

to existing operators to step up to

the plate. It is only through genuine

partnership between regional airports

and the airlines that serve them that

we can ensure sustainable air services

over the long term.

Our regions depend on them.

O

n federal budget night the

aviation industry learnt that

the government will introduce

enhanced screening procedures

for all passengers and their baggage

at a number of additional regional

airports. This news was surprising,

and the timing of the announcement

disappointing, especially given the

excellent intelligence-driven, risk-based

approach applied to regional airport

security over the past several years.

By way of argument, a review of the

current National Threat Assessment

would most likely highlight that the

current targets of choice are to be

found in mass gatherings. Mid-city

streets and boulevards, large shopping

centres, train stations, ferry terminals,

major airport check-in areas etc, and

this has driven increased security in

places such as central Sydney and

Melbourne.

We suggest that a much lower

number of people waiting at a rural

airport for their air service, based on

the current threat assessment, would

not rate as an attractive mass gathering

target!

While the total costs of this

proposal are yet to be calculated by

the Department of Infrastructure and

Regional Development, the whole

expense needs to be considered and not

just the once-off capital expenditure to

purchase the high-tech scanning and

surveillance equipment and systems.

The RAAA is concerned that

ongoing costs – the employment and

ongoing training costs for specialised

staff – will quickly outweigh the initial

purchase and installation costs.

Any additional increase in regional

airfares to offset these costs would be

unsustainable.

Instead, the only fair and reasonable

way to fund this proposed policy is for

the costs to be shared equally by every

Australian domestic air traveller, or

the public purse. Given that the people

most likely to benefit from the ‘warm

glow of security’ are the population at

large, the funding source should be the

latter – consolidated revenue.

However, as the RAAA continues

to support both a secure and viable

regional airline industry, we suggest

that perhaps the best way forward as a

reasonable and acceptable compromise

would be to examine and adopt the

American approach. The US has the

ASSIST (Airport Security System

Integrated Support Testing) program,

whose goal is to strengthen the aviation

system by establishing the best possible

security solution in the unique context

of that airport’s location. I would also

add to the airports’ location... “and its

operational environment”.

This approach would be aligned

with a risk-based and intelligence-

driven regime that would be broadly

supported by the aviation industry.

The regional airline community

would welcome any form of

consultation with government policy

and decision-makers on this emerging

financial threat.

‘They may

need to once

again make the

case for their

communities.’

‘This

news was

surprising.’

Regional challenges

Supporting the success of new entrants

Alert and alarmed

Counting the costs of new regional airport screening

AIRPORTS

CAROLINE WILKIE

CEO  AAA

FROM THE REGIONS

MIKE HIGGINS

CEO  RAAA