The peak body representing regional aviation has warned that critical services are at risk due to declining profitability, skill shortages and red tape.
In a paper released today, the Regional Aviation Association of Australia (RAAA) said many regional airline routes were unprofitable.
Association CEO Rob Walker said even the profitable routes averaged financial returns of seven percent or less.
“Despite these challenges regional and remote aviation businesses are committed to their local communities and they will always do their best to keep flying,” Mr Walker said.
“But if regional and remote aviation is to stay in the air it needs support from new federal policies, targeted assistance and relief from bureaucratic burdens.”
The RAAA paper, released ahead of the Federal Election, said regional aviation carried more than two million passengers a year, moved more than 23 million kilograms of freight and employed more than 10,000 people.
“41 percent of domestic passengers each year travel through regional airports, yet there are fewer regional airlines today than there were 20 years ago,” the paper says.
“55 percent of aviation workers are based in regional and remote areas. Life gets much tougher in regional and remote Australia when the planes aren’t flying.”
The RAAA says Australian aviation is made up of many small and medium sized businesses with 2281 of these employing less than 19 people.
“Keeping these small and medium sized businesses viable and profitable is hard work, especially in regional and remote Australia,” the paper says.
“Margins are thin and return on capital hard-earned. Costs continue to rise. Increases in fuel prices, labour costs and airport charges all continue to erode the financial viability of many regional operators.
“All of this set against a future operating environment where there are relatively few options for fleet renewal or fleet refreshment. “
Mr Walker said the RAAA was urging all parties and candidates to make commitments to key issues such as targeted economic support for aviation businesses, doing more to address skill shortages, removing unnecessary regulatory and cost burdens and avoiding one-size-fits-all government policies.
The full report is available on the RAAA website.
