One Nation FB post on regional airports

[fly_tornado]

An interesting post about the relative costs of regional airports and the costs of flying

 

 

 

[fly_tornado]

text for those that don't do FB

 

I had a request when I was in Port Headland to find out why regional flights cost so much money!!!

 

I asked to meet with Virgin to get some answers and I was quite surprised by the news they provided me. Thank you to Jane from Virgin Australia for helping me get to the bottom of these prices.

 

REGIONAL AVIATION ECONOMINCS

 

Pricing is driven by a combination of factors:

 

• Demand (influenced by the corporate/leisure mix, seasonality of route);

 

• Competition on the route; and

 

• Cost of operation – influenced by airport fees, aircraft type and sector length.

 

The costs of operation on regional routes are always higher than on trunk routes because there are fewer passengers and frequencies against which costs can be spread.

 

Charges at regional airports are generally higher than at larger city airports, as there is a smaller passenger base over which to spread costs, ie the same principle applies.

 

AIRPORT CHARGES

 

Airport charges (terminal, landing and security screening fees) represent a significant proportion of airfares on regional routes. For the routes flown by Virgin Australia, in WA these charges account for around 30% of sale fares and in Queensland up to 40%.

 

Charges at regional airports in WA and Queensland where Virgin Australia flies are higher than those in NSW and Victoria. The table below sets out the costs involved in an aircraft turn at regional ports to which Virgin operates.

 

The cost per turn has been calculated for the same aircraft type and number of passengers to ensure consistency of comparison. As can be seen, the cost per turn is considerably higher at a number of regional ports in WA and Queensland compared with those in other States and Territories.

 

In some cases, this reflects over-investment in airport infrastructure by councils (who with the exception of Broome are the owners of the airports in the table below). “Gold-plating” of airport infrastructure can lead to significantly higher aeronautical charges for airlines, particularly at low-volume regional facilities. It is imperative that investment in airport infrastructure is aligned with the needs of passengers using the facilities and demand for air services rather than future aspirations.

 

In other cases, this reflects a growing trend whereby local councils grant the management rights of an airport to a third-party private operator under long-term lease arrangements. The financial benefits delivered under such arrangements provide funds which can be used for investment in other community infrastructure while also relieving councils of the economic burden of investing in airport infrastructure during the relevant term of the lease. While this is the prerogative of councils (given there is no regulation of regional airport pricing), communities are not aware this practice is occurring and simply draw the conclusion that airlines are over-charging.

 

In addition, some regional airports seek to earn a financial return on the provision of security screening services. The costs of these services should be recouped by airport operators from airlines on a strict pass-through basis, which ensures that both airlines and airport operators face no financial disadvantage as a result of compliance with mandatory government security regulations.

 

COMPARISON OF REGIONAL AIRPORT COSTS

 

Scenario Aircraft 737-800 | Tonnes 79.01 | Available seats 176 | Load factor 75% | Passengers 132

 

REGIONAL WESTERN AUSTRALIA

 

Broome $9,705

 

Kalgoorlie $13,245

 

Karratha 11,616

 

Newman 9,486

 

Port Hedland 12,857

 

REGIONAL QUEENSLAND

 

Bundaberg 7,046

 

Cloncurry 10,152

 

Emerald 8,298

 

Gladstone 7,944

 

Moranbah 8,804

 

Mount Isa 7,886

 

Rockhampton 3,898

 

REGIONAL QUEENSLAND CENTRES

 

Cairns 4,000

 

Gold Coast 3,003

 

Sunshine Coast 5,727

 

Townsville 3,021

 

REGIONAL NSW / VIC CENTRES

 

Albury 4,960

 

Ballina 2,746

 

Coffs Harbour 3,868

 

Mildura 5,281

 

Newcastle 2,339

 

Port Macquarie 4,884

 

NORTHERN TERRITORY CENTRES

 

Alice Springs 4,149

 

Ayers Rock 5,159

 

Darwin 6,401

 

 

[old man emu]

Told ya that Pauline would at least raise aviation matters since she's taken to using small aircraft to cover a lot of country.

 

Just shows to go ya that there's a grain of good in everyone.

 

OME

 

 

[cscotthendry]

Told ya that Pauline would at least raise aviation matters since she's taken to using small aircraft to cover a lot of country.Just shows to go ya that there's a grain of good in everyone.

 

OME

OME:

I'm glad that PH is raising these issues, but I'm sceptical about any connection between what ANY politician says they'll do, and what they actually do.

 

The only reliable predicter of what a pollie might follow through on is to "follow the money". See who's buying their election for them (ie those with the deepest pockets) and work out what the sponsors' motives are. Then and only then will you see any congruence between words and actions.

 

 

[Downunder]

Good onya Pauline. Real issues for real Aussies!