A new Regional Aviation Association of Australia (RAAA) policy paper released in the lead-up to the May Federal Election has urged both sides of parliament to take decisive action on both regional and general aviation.
Entitled What if You couldn't Fly?, the paper considers the ramifications of losing regional aviation services and provides solutions the RAAA believes will ensure the industry remains healthy in the future.
Services to regional Australia have for years been viable only through government subsidies, with profit margins very slim for both regular public transport and charter operations.
RAAA CEO Rob Walker says many regional airline routes are not turning a profit, and where profits is realised, it averages 7% or lower.
“Despite these challenges regional and remote aviation businesses are committed to their local communities and they will always do their best to keep flying,” 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 has issued a detailed policy platform that sets out the key issues that must be acted on now.
“We are calling on political parties and candidates to recognise regional and remote aviation as an industry of national significance and to commit to our policy plan.”
Walker says many people in regional aviation believe governments take aviation for granted and are slow to respond to issues until there is a full-blown crisis, such as the recent REX administration.
“Taking aviation for granted will cost the national economy billions of dollars in lost regional business production and deny people who live outside the major cities the right to connect quickly and easily with family and friends," he said.
The RAAA is encouraging the Federal Government to adopt five strategic objectives to protect regional air services:
- provide economic support and investment
- combat workplace shortages
- reduce regulatory and cost burdens
- adopt new technology
- create tailored policies for regional operators.
One of the key investment policies promoted in the policy is fleet renewal, with many regional airlines and charter companies still running legacy aircraft.
"Many smaller aircraft used on regional and remote routes today do not have like-for-like replacements, and operators are faced with difficult decisions about the future of their fleet," the RAAA believes. "Aircraft can be kept flying safely with careful and thorough maintenance, however over time the cost of spare parts and labour becomes a financial weight on business.
"At the same time, a new aircraft will cost millions of dollars and may not be an ideal replacement."
On the issue of skill shortages, the RAAA calls for the regulatory requirements for LAME training to be aligned with vocational training to reduce confusion for both trainees and MROs, and for the government to promote aviation as a career among young people.
The RAAA also targeted CASA and Airservices for poor balance between staffing levels and productivity.
"Federal aviation agencies such as CASA and Airservices Australia must be as efficient and cost effective as they can be," the policy states. "Staff resources must be adequate and allocated appropriately.
"Overtime, staffing at CASA and Airservices has become top heavy with administrators. There must be a greater focus on technical and operational people who deliver aviation safety services.
"CASA can take months to deliver a relatively straightforward service required to be provided under the safety regulations due to a lack of qualified staff and Airservices continues to be challenged by service restrictions due to lack of staff availability.
"The aviation industry still pays for these services despite the shortcomings."
With new technologies on the horizon, the RAAA has taken a stance that regional aviation will embrace advanced air mobility (AAM) and alternative energy sources, but the policy points out that the ALP government needs to recognise the costs and burdens associated with new technologies, and calls for a program of financial support for operators.
On the matter of burden, the RAAA says government policy must recognise the unique challenges of regional aviation, and resist the temptation to apply "one size fits all" regulation not adapted for the specific circumstances. It also calls on the government to exempt some operators from the proposed "delay and pay" scheme to be levied on airlines.
“The people who run and work in regional and remote aviation businesses love what they do and are doing their utmost to support their communities," Walker said, "now they need the right support from government."
The full policy paper What if You couldn't Fly? is on the RAAA website.