Sydney-based business support organisation Business NSW last week made eight recommendations to the Federal Government aimed at preserving regional airports in NSW.
The report, titled Keeping Regional NSW Connected, covered all aspects of regional aviation in the state and identified areas Business NSW believes need to be improved for regional airports to remain viable.
NSW has around 60 regional airports that handle 3.5 million passengers every year, the vast majority of whom pass through the 10 busiest airports.
"When regional airports are well connected, businesses have the confidence to invest, skilled workers are more likely to relocate, and communities can attract visitors, students and services," said Business NSW CEO Daniel Hunter in the report introduction.
"Conversely, when connectivity is lost, the effects are immediate and severe, resulting in higher costs, disrupted supply chains, weaker health outcomes and lost opportunities for regional economies."
Business NSW made eight recommendations out of the study.
- Develop a 10-year NSW Regional Aviation Strategy
- Establish a NSW Regional Aviation Infrastructure Fund
- Secure reliable and affordable air services
- Position Western Sydney International airport as a true regional gateway
- Build a skilled regional aviation work force
- Accelerate the transition to clean aviation
- Improve data transparency and accountability
- Encourage public-private partnerships and airport precinct investment.
The report identified ageing infrastructure, rising operational costs, financial sustainability, governance challenges and a fragile airline market as factors putting the state's airport network at risk, as demonstrated by the collapse of airlines such as Bonza and REX.
"Governance arrangements compound this risk," Hunter said. "Local councils own and operate most regional airports, often without the financial resources needed to maintain or upgrade infrastructure.
"Larger secondary airports such as Bankstown and Camden are leased to private operators, but their commercial priorities do not always align with the long-term needs of local communities or regional industries."
Simon Westaway, CEO of the Australian Airport Association (AAA) welcomed the Business NSW report, saying it highlighted the critical role played by regional airports in supporting local communities.
"The Business NSW report highlights many of the challenges regional airports continue to face and reinforces the evidence the Australian Airports Association has been presenting for many years," he told Australian Flying.
" The findings align closely with the AAA's own research and advocacy, which consistently demonstrates the financial and operational pressures facing regional airports. This includes rising operating costs, ageing infrastructure and the ongoing financial pressures experienced by many airport operators, despite our collective role as critical infrastructure.
"This research provides a more than useful evidence base to inform government decision-making and discussions about future investment and policy settings and the crucial role of airport infrastructure.
"The future health of our regional airports will ultimately depend on the actions that follow. We hope the findings encourage the NSW Government to work closely with industry and the Commonwealth to ensure regional airports remain sustainable, connected and capable of supporting the communities they serve."
Westaway also said that there was a place for aviation studies at state level that contributed to national policy.
“Regional airports are essential pieces of infrastructure, but the circumstances they operate in can vary significantly between jurisdictions.
" State-based studies can help identify local priorities while also contributing to a stronger national evidence base for policy development and investment.
"The AAA has consistently advocated for greater recognition of the economic and social contribution of regional airports. They are collectively crucial, economic enabling infrastructure."
Business NSW also reiterated their belief in the importance of a strong regional airport network.
"Regional airports are not optional extras," Hunter said. "They are vital to keeping regional economies and communities connected and thriving. They deserve the same policy attention as any other piece of critical infrastructure.
"To secure the future of regional NSW, policymakers must invest in a resilient, affordable and competitive aviation network that supports business and communities for generations to come."
The full report is on the Business NSW website.
-Steve Hitchen