Budget support welcome, but not enough for full airports recovery, says AAA -

The Australian airport sector has received a big boost from the 2021-22 federal budget, with further investment helping the sector’s economic recovery.

A range of support measures including new precincts at Perth Airport and support programs are part of the documented investments.

Assistant Minister to the Deputy Prime Minister Kevin Hogan said the federal government would release a Five Year Plan for Aviation later in the year to chart a course for aviation from response, through recovery, to repositioning the sector for the long term.

“The government will support individuals and businesses to harness the opportunities offered by digital aviation technologies such as drones, advanced air mobility (AAM) and electric vertical take-off and landing (eVTOL) vehicles,” Assistant Minister Hogan said.

“Importantly, the government has also acted quickly to subsidise fixed costs associated with fuel excise, domestic security, Airservices Australia charges and Ex-Gratia Land Tax.”

Meanwhile, the Australian Airports Association chief executive James Goodwin said in a statement yesterday the budget support, while key to reviving the airport sector, will not result in full recovery until international borders open.

The 2021-22 budget papers acknowledge international travel is expected to remain low until at least mid-2022.

“Australia’s airports have been doing it tough throughout the pandemic, but the people who work in them have been doing it tougher,” Goodwin said.

“While many of our airports are seeing a sharp increase in passenger numbers, we must remember a full recovery is still some time away,” he said. “Without international travel, the airport sector and the broader economy will not make a full recovery.”

Goodwin did acknowledge that the extension of the regional and domestic aviation support programs, announced in March, will continue to keep critical air routes open.

“We saw major infrastructure investments at two of our key mid-sized regional airports including $66 million to upgrade Newcastle Airport’s runway to Code E. This investment will enable the airport to accommodate long range aircraft and facilitate international flights.

“Rockhampton Airport will benefit from a $25 million investment to house Alliance Airlines’ regional fleet and $85 million will go towards road access works for Perth Airport’s Northern Access Precinct.

But recovery for airports is still far away. Across Australia domestic passenger numbers are still 40 per cent lower than pre-COVID levels.

“The government has missed an opportunity to support our regional airports and remote airstrips with no new funding for the Regional Airports Program (RAP) and the Remote Airstrip Upgrade Program (RAUP),” said Goodwin.

“We look forward to working with the government to ensure critical airport infrastructure support is extended to regional Australia to assist smaller airports and the regions they serve.”