China owns Australian airport for $1 for 100 years lease - report

[red750]

China owns Australian airport after paying $1 for lease | Daily Mail Online

[bexrbetter]

Damn, I thought $0.80 cents was a bit hopeful.

 

 

[fly_tornado]

Local councils rubbing hands together because they have found a way to offload airports

 

 

[naremman]

Don't know what is going on at Merredin at the moment, other than to say it has been quite a while since the airspace has been disturbed by a Grob.

 

The airstrip was originally owned by the Shire of Merredin, though not sure what the current ownership status is.

 

China Southern Airlines for the most part worked hard to fit in with the locals. Did a number a Angel Flights through Merredin and always found them to be very helpful and supportive. Always made the Jet A1 facility available when the Rescue Chopper was in this patch, and as this distance challenged their range sometimes required a top up. They were very helpful in conducting Flight Reviews for local pilots, a service always appreciated as access to Instructors is a bit scarce in the Wheatbelt. I did two reviews with them, and they would not ask for payment if you provided your own aircraft, but discreetly suggested the RFDS tin or staff Xmas do could do with some assistance.

 

To me the issue is not questioning the foreign ownership, but pondering why an operation that functioned seemingly, well no longer operates, to the detriment of lesser employment opportunities and a substantial reduction of money spent in a small remote community that could really gain some benefit from the operation of a flying school.

 

We often used to see the Grobs doing circuits at airstrips in adjoining towns, gaining experience on some of our more interesting, usually gravel airstrips, and broadening their experience base. We always enjoyed the chats with the guys when they took a breather.

 

I do ponder how many of the pilots flying the China Southern A330s into Australian ports currently did their initial training through Merredin?

 

I do miss the sound from the Grob when the Instructor retards the throttle and sets the student the task of a PFL onto my farm strip, for which my consent had been sought and readily given. Few handled it really well, but the ones who were fairing well were able to take it pretty low before power was applied. One stand out was a student who would have made it into my 1500' downhill strip on a burbly hot March day. If I was going to have to sit behind a pilot down in cattle class, I would hope like hell it was that bloke!

 

Given China Southern's cessation in training, what are we in Australia going to do to safeguard any similar training operations, or being optimistic, creating the environment where this area of aviation might expand?

 

Having read Dick Smith's "Two Years in the Aviation Hall of Doom" in 1985, how sad is it for aviators who noted the issues and concerns Dick raised to observe the current status?

 

Funny that within a week one newspaper article highlights the downturn in flying training in recent years, and another leads the article proclaiming the issue the issue of a $1, and misses the multiple millions that through Australian aviation that are not being being spent to benefit Australia!

 

 

[bexrbetter]

the article comes to you courtesy of The Daily Mail UK who's main readership is for all the latest Hollywood and other Star's gossip and affairs. they are a shock article rag, scum that is the Gutter Press.

 

 

 

Merredin aerodrome is leased under a 100-year lease arrangement by China Southern Airlines and is used as a pilot training facility by the China Southern West Australian Flying College, who also operate from Jandakot Airport in Perth. The airport was leased for the sum of one Australian Dollar with the state government banking that investment would follow. The partnership in the years since has been successful. Upgraded facilities include bitumen runways, a control tower, fire control equipment, hangars, classrooms, and housing. Although the aerodrome is leased by China Southern Airlines, the RFDS and private users still have access.

 

 

[coljones]

It is a pity that the Mail didn't tell about the ex DCA airports handed over to councils and then placed under the control of 3rd parties to the exclusion of everyday GA and RAA operations or under usurous conditions of access. It seems like the Chinese are gentlemen in relation to access.

 

 

[bexrbetter]

It seems like the Chinese are gentlemen in relation to access.

Trust me, it's money, eg: landing fees, hangarage, etc. What is good is whereas some Western company may consider a few dollars not worth the effort, the Chinese will jump at it.

 

 

 

[Downunder]

I flew into Merredin a couple of years ago just to have a look.

 

Phoned up Saturday morning and they said "come on over, see you when you arrive".

 

Was met by a young aussie instructor and given a coffee and a tour.....no fees or charges.

 

Spoke to a few students and generally wondered around.

 

While I was there another aircraft came in for fuel unhindered.

 

I was actually treated far friendlier than many aussie owned council airports, of whom quite a few despise light aircraft.

 

It's quite a large facility, maybe 25 or 30 grobs with maint facility. I can see quite a bit of money coming into the town from it.

 

The pertinent question is, I think, "If the chinese never set up the facility would an Aussie or other company set one up"?

 

I think the answer is "no".

 

This sets it apart from other purchases of existing businesses previously aussie owned and run. A "real" investment rather than just a "take over".

 

Our "wheatbelt" farming towns have been in decline for sometime and councils are struggling to keep many viable.

 

 

[fly_tornado]

I think the idea of leasing (100 year lease is the same as selling off) airports to mining or private companies companies would get a lot of approval from federal aviation safety government agencies.

 

Private aircraft ownership is extremely dependent on being able to easily access entry and exit points, every time an access point is removed the aircraft loses a little bit of its functionality.

 

It reduces the viability of GA and RAA aircraft owners to access a community, which always means less aviation accidents.

 

Rural communities are in decline because of mechanisation and the lack of rapid transport options, travelling 3-4 hours to visit a doctor with a sick kid is one way to empty communities of young families.

 

 

[bexrbetter]

What that guy said!

 

 

[poteroo]

I can see quite a bit of money coming into the town from it.

I'm not sure this is the case. I was told, (albeit some years ago), that there was precious little spent in town, and that bulk food was purchased centrally, (in Perth), for both the JT and MDN establishments. Also, it was noted that everyone hits the road to the bright lights of Perth come the weekend, and that student spending was small locally. Things may have changed since then?

 

I used to fly into MDN regularly in the 70's, but once CSA setup - it became inconvenient to meet their 'allowed entry' times. Result was that I used a small graded strip just to the West of the 6MD aerial.

 

Originally, CSA promised the local Aero Club that they would provide both an aircraft and an instructor for 'locals' to do their PPL training on a weekend. This fell thru quickly, I'm told, because the instructors jacked up against weekend work. Who knows, but CSA arriving in MDN certainly put paid to any Aero Club activities. But, a whole swag of country Aero Clubs have folded over the past 30 years - without any help from foreign schools, so one assumes that the incursion by a large flying school hasn't affected anyone except the immediate locals.

 

A lot of Aussie instructors have held reasonable jobs with CSA, and you could not say that they had just installed a 'Chinese' flight school to the complete detriment of our aviation industry. I'm not sure whether CSA made the right decision by locating in MDN because it is so far out in the sticks. Closer to a capital city or major regional city might have been better in many regards.?

 

happy days,

 

 

[timtam80]

the article comes to you courtesy of The Daily Mail UK who's main readership is for all the latest Hollywood and other Star's gossip and affairs. they are a shock article rag, scum that is the Gutter Press. 

 

Merredin aerodrome is leased under a 100-year lease arrangement by China Southern Airlines and is used as a pilot training facility by the China Southern West Australian Flying College, who also operate from Jandakot Airport in Perth. The airport was leased for the sum of one Australian Dollar with the state government banking that investment would follow. The partnership in the years since has been successful. Upgraded facilities include bitumen runways, a control tower, fire control equipment, hangars, classrooms, and housing. Although the aerodrome is leased by China Southern Airlines, the RFDS and private users still have access.

I'm glad you pointed out the nitty gritty of it all as opposed to the go with the flow of the tabloids.cause the truth is regardless of what we hope for or want is different to what is going on in the economy of oz.it will continue on the same slope as we have a high inflation rate and Aussie investors are few and far between to make the decision to invest in oz.so a situation like you have portrayed is the best outcome we can hope for

 

 

[coljones]

I'm glad you pointed out the nitty gritty of it all as opposed to the go with the flow of the tabloids.cause the truth is regardless of what we hope for or want is different to what is going on in the economy of oz.it will continue on the same slope as we have a high inflation rate and Aussie investors are few and far between to make the decision to invest in oz.so a situation like you have portrayed is the best outcome we can hope for

inflation high? for the last couple of years it has been below 2% The difficulty, in Australia, is that the banks, government incentives, interest rates, capital gains tax and negative gearing are driving investment to the residential housing sector and speculative development. The only things worse are gaming, bit coins and shares in mining companies

 

 

[timtam80]

inflation high? for the last couple of years it has been below 2% The difficulty, in Australia, is that the banks, government incentives, interest rates, capital gains tax and negative gearing are driving investment to the residential housing sector and speculative development. The only things worse are gaming, bit coins and shares in mining companies

I only quote the inflation rate as a base as to part of the reasons why Oz is getting sold off at the rate it is.we are just an equity

 

 

[bexrbetter]

inflation high? for the last couple of years it has been below 2%

That's what happens when everything inflates for so long that no body can purchase it any longer so the price increases slow down.

 

The difficulty, in Australia, is that the banks, government incentives, interest rates, capital gains tax and negative gearing are driving investment to the residential housing sector and speculative development.

Yup, horrific results for the general population. There's a large percentage of young people now who will never be able to afford a house, not that they can afford the current rents either.

 

Seems moot to me anyway, so what if your house increases in value, sell it and you have to buy someone else's house that has also increased in value. It's all for the bank's benefit, your house goes up in value and you can loan more against it, no one else is winning except the banks (and Council rates).

 

 

[timtam80]

That's what happens when everything inflates for so long that no body can purchase it any longer so the price increases slow down.

 

Yup, horrific results for the general population. There's a large percentage of young people now who will never be able to afford a house, not that they can afford the current rents either.

 

Seems moot to me anyway, so what if your house increases in value, sell it and you have to buy someone else's house that has also increased in value. It's all for the bank's benefit, your house goes up in value and you can loan more against it, no one else is winning except the banks (and Council rates).

Dare I say that's right on the money

 

 

[fly_tornado]

2% if you ignore housing and fuel prices

 

 

[DenisPC9]

I'm not sure whether CSA made the right decision by locating in MDN because it is so far out in the sticks. happy days,

Probably for much the same reason that RAAF Pearce 2FTS did/does a component of their Flying Training at Albany in Summer and Learmonth in Winter.

 

Lots of uncluttered sky. And not too many panicky or (any bit of) noise averse people around, who are only too willing to telephone any and everyone whenever their dyspepsia surfaces. Thus causing lots of extra work for those flying and those running the shop. And if they have contacts up the hill in Perth or Canberra, that extra work multiplies exponentially.

 

 

[Downunder]

Merredin has it's own frequency. When you have 10 or 12 in the circuit, probably calling all legs, in chinglish, that's a bloody good thing for the rest of us!

 

Merredin is only 260 kms from Perth..... hardly "out in the sticks".

 

At least in the context of Australia/Western Australia's size.

 

 

[onetrack]

Merredin is typical of all country towns in Australia, more than 200kms from the coast or from the nearest capital. It has the virtually the same population as it did when I left school over 52 years ago.

 

It has no ability to grow or encourage industry. The only reason it exists is because it's on the major East-West highway and it supports the surrounding agricultural region and the associated agricultural industries.

 

These industries are in decline and have been for over 40 years. Agricultural operations are being run by older and older people - and less and less of them every year, due to mechanisation and increasing high technology.

 

The Merredin agricultural zone is not regarded as a "reliable" zone for either crops or animals. In recent decades, the numbers of animals run on farms in the region has declined substantially - because crops offered better returns.

 

However, the returns from cropping around Merredin are typical of "marginal" zones - you're lucky to get one good year in three - and often you get several bad years in a row.

 

The result is consolidation - the smaller, poorer farmers sell out to the bigger, better-financed farmers, and the population effectively decreases as the farming family that sold out, goes elsewhere looking for ways to make a more reliable living.

 

The railways no longer provide any level of support or employment for country towns. The narrow-gauge rail network has suffered line closures and cutbacks until it has become a shadow of what it once was.

 

It's now only a seasonal network, and a greatly-restricted network at that, due to poor carrying capacity, tight curves, sharp gradients and the original (very) low-cost construction (these lines were called the

 

"thousand-£ lines" - because they only cost £1,000 a mile to build in the early 1900's).

 

The water supply network now only employs minimal staff, and they only do maintenance - and they travel from the larger regional towns to do so.

 

In the small W.A. country town, well South of Merredin, where I lived in the early 1970's, the town had 400 people and 25 were employed by the Water Supply Dept. Today, there's only 3 employees there. The town population is now under 350.

 

These country towns struggle to attract industry of any kind, and people. The people only come when there is work for them. The service industries such as tourism and roadhouses and motels are the only real growth areas - but even they are extremely limited - because these areas of W.A. have very little to attract visitors - no matter how much the Shires try to entice them.

 

So anything like an airport which can attract Chinese money, and a higher level of useage, and an increased number of people in the town, can only be a good thing for the town.

 

 

[bexrbetter]

Great insights Onetrack, thanks.

 

 

[onetrack]

The news article below is slightly more balanced than the breathless U.K. news article - and the local Merredin Shire councillor outlines the Shire's attitude to the Chinese owning the Merredin aerodrome.

 

The Chinese took a continuous financial burden off the Shire's hands, poured a very sizeable amount of money into upgrades into it, and this councillor is expressing the correct view that the Chinese ownership and investment is beneficial to the town and the region.

 

Dicks rant is confusing Chinese ownership of prime farmland with airport or aerodrome ownership. To call the Merredin aerodrome a "premium" or "prime" piece of Australia, is stretching things a bit.

 

It's not exactly an aerodrome shared with the Defence Dept, or located next to an important Defence facility. The Chinese have made an extensive investment that is relatively high risk in this purchase.

 

In addition, Dicks comments about prime farmland are off the mark. The Chinese have also purchased a couple of large landholdings in the Eastern Wheatbelt, that are dryland cropping operations.

 

To refer to these investments as "prime" farmland is well off the mark. The farmland the Chinese bought is marginal - yet the Chinese have paid good money for it, and have upgraded all the farm facilities with substantial investments.

 

It's not the first time the Chinese have benefited local struggling businesses with buyouts and substantial investment arrangements. It's something we have to get used to - but its also something that needs to be monitored.

 

Controversy over ownership of Merredin airport

 

 

[Yenn]

Isn’t that what China has done in Africa, much to the disgust of USA. Step in and help the local economy, whet.even USA thought they should be the big brother.

 

 

[poteroo]

Controversy over ownership of Merredin airport

Pic #2 surely isn't Merredin township below the spinning Grob - looks more like a major/capital city.

 

Onetrack has made valid points about Chinese ownership. Compared to the value of US, UK, EU 'investment' in Australia - it's not very large. We are really becoming paranoid when ownership of our assets is called 'investment' if we perceive the owners as friendly, but if it's by Chinese, or North Korea perhaps - we see it as a 'hostile takeover'. It's not racism - simply the perception of the intentions of a less friendly people. We'd certainly see the same reaction to huge investments by Russia, which is a Western / 1st world nation, and it's driven by fear of their intentions.

 

Where the acquisition of agricultural assets raises concerns could be in the way that these are serviced. Were the Chinese owners to import fertiliser, chemical, and other necessities directly into Australia, for their exclusive use on those properties - it could trigger an interesting debate. If they were to export all of their production directly to China - a similar discussion may occur. Can foreign owners actually own and operate an enterprise in Australia without ever directly purchasing a single item, and export produce outside of the approved export protocols?

 

I believe that rural communities have some concerns about the operation of these foreign owned properties insofar as their adherence to quarantine and biosecurity rules. The possibilities are certainly increased if there are increased movements of personnel in/out of these locations. Were the scenario in the para (above) to be happening, then the risks are magnified. It needs our federal Dept of Agriculture to have AQIS run a risk ruler over these properties, perhaps over the 'whole' would be prudent?

 

happy days,

 

 

[Downunder]

Poteroo, I was told second hand and don't know if it is true, but the Chinese bought a very large cotton farm in nsw.

 

It collects a lot of water which they sell to the govt.

 

That, combined with "primary producer" export taxes ( or should I say deductions) allow them to deliver cotton to their factories in china virtually free.

 

Situations like this, if true are a real concern. Basically cutting Australians out of Australia.