The Australian Airports Association (AAA) last week delivered a submission to the Federal Government claiming that regional airports need to be excluded from proposed consumer protection laws aimed at compensating passengers for airline delays.
The ALP's Aviation Consumer Protection legislation is directed at both airlines and airports, requiring monetary compensation for flights that run late or are canceled.
However, the AAA believes that smaller regional airports will be impacted unfairly, and could become financially unviable under the burden of compensation requirements. The AAA says that a threshold of 1 million passengers per year needs to be applied.
"It is not credible to expect such facilities to manage complex consumer complaint obligations if the government does not adopt a threshold such as one million passengers annually," the AAA submission states. "It must set out clear alternatives, including how exemptions will operate and what proportionate compliance options exist for very small regional and remote airports.
"These options could include scaled obligations, a shared regional compliance model, or simple requirements such as signposting Australian Consumer Law and disability protections rather than building full complaint systems."
Most regional airports in Australia are critical infrastructure for general aviation also, and many of them are already under financial pressure whether they have a regional airline service or not.
If the AAA's fears are realised under a consumer compensation scheme, regional airports forced to close would be lost to GA as well.
"Approximately 60% of council-owned airports already operate at a loss, running annual deficits and relying on intermittent government grants, or diverting money from local community services just to maintain runways and critical infrastructure," the AAA states.
"Even modest additional compliance costs could be unsustainable. If airports of this size were compelled to fund consumer protection mechanisms, the result would likely be reduced services, increased charges or even the risk of closure.
"The impact would be felt most acutely in regional communities, where higher airfares or fewer flights would cut directly against affordability and access."
In their submission, the AAA describes regional airports as "lifelines" that support aeromedical evacuations, freight, tourism, education and family connections, which often are the only practical link between remote communities and the rest of Australia.
"Burdening these airports with the same obligations as major city airports would be inequitable and risks cutting communities off from essential services.
"The Government has been clear about its commitment to regional development, productivity and equity. Forcing small airports into compliance obligations they cannot afford would cut across these priorities.
"By contrast, retaining the threshold ensures that around 90% of passenger movements are captured under the scheme while protecting the viability of regional airports that are essential to the social and economic fabric of Australia."
The AAA also recommends that the government explicitly state that non-RPT airports are excluded from the proposed legislation consistent with departmental advice to provide clarity and manage expectations for GA operators and passengers.
Government consultation on the proposed compensation scheme closed on 5 October.
The full submission is on the AAA website.