[Peetwo]

Air Routes Inquiry recommendations? - A wet lettuce dressing.

Via the North West Star:

JUNE 8 2019 - 10:54AM

Airline Inquiry hands down nine recommendations

Derek Barry



The Senate Inquiry meets in Cloncurry 2018.

Almost two years after it formed the Senate Inquiry committee has handed down its final report but it seems cheaper flights seem as far away as ever for people in North West Queensland.

The Inquiry into "the operation, regulation and funding of air route service delivery to rural, regional and remote communities" has handed down nine recommendations, including, wait for it, a call for another inquiry.

The first recommendation is for the federal government to direct the Productivity Commission to undertake a standalone, public inquiry into domestic airfares on routes to and between regional centres in Australia.

"The inquiry should, via a detailed economic analysis, investigate the feasibility of increasing operational subsidies and introducing other price control alternatives to address the high cost of regional airfares," the Inquiry said.

"The inquiry should consult with regional communities to determine whether additional routes should be subject to regulation."

They also recommended the Productivity Commission expand its terms of reference the economic regulation of airports, to investigate the social and economic impacts of air route supply and airfare pricing on rural, regional and remote Australia.

Other recommendations including looking at the increasing costs of security screening at regional airports, a reviewing the funding of regional and remote aerodrome infrastructure and maintenance, asking COAG to develop a nationally consistent framework for regulated routes across Australia.

The one recommendation that did actually address fare prices was also for COAG to "leverage each state's purchasing power...to expand access for regional communities to initiatives such as community and compassionate fares, particularly for 'last minute' flights".


Hamish Griffin gives evidence to the inquiry in Cloncurry.


The committee said the framework should be developed in consultation with airlines to encourage greater transparency around the operation of such fares, and consider the feasibility of allowing residents in regional, rural and remote areas to access subsidised airfares through online purchasing.

The inquiry noted the committee received considerable evidence from the residents of Mount Isa and other regional Queensland centres.

The inquiry heard sessions in Cloncurry and Mount Isa and also heard from the major airlines including Qantas.

Cloncurry cheaper fares advocate Hamish Griffin said he was disappointed there was no recommendation for more regulated routes or capped fares.

"If I can find any positives in the findings would be additional funding for security services in regional airport which I hope would see less pass through costs to passengers and a call for some transparency in current regulated routes and the rendering process," Mr Griffin said.

"I call on the Queensland Labor Government to make public their reports on regulated routes in regional Australia."

Via the Senate:

Report

The operation, regulation and funding of air route service delivery to rural, regional and remote communities
7 June 2019

© Commonwealth of Australia 2019
ISBN 978-1-76010-979-0

View the report as a single document - (PDF 1MB)

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Committee Secretariat contact:

Committee Secretary
Senate Standing Committees on Rural and Regional Affairs and Transport
PO Box 6100
Parliament House
Canberra ACT 2600 

Phone: +61 2 6277 3511
Fax: +61 2 6277 5811
[email=rrat.sen@aph.gov.au]rrat.sen@aph.gov.au

[/email]

Recommendation 1
10.36 The committee recommends that the Australian Government direct the Productivity Commission to undertake a standalone, public inquiry into the determinants of domestic airfares on routes to and between regional centres in Australia. The inquiry should, via a detailed economic analysis, investigate the feasibility of increasing operational subsidies and introducing other price control alternatives to address the high cost of regional airfares. The inquiry should consult with regional communities to determine whether additional routes should be subject to regulation. The Productivity Commission should use its compulsory information-gathering powers to inform its investigations.

Recommendation 2
10.37 The committee recommends that the Australian Government direct the Productivity Commission to expand its terms of reference in all future reports into the economic regulation of airports, to include investigations into the social and economic impacts of air route supply and airfare pricing on rural, regional and remote Australia.

Recommendation 3
10.63 The committee recommends that the Australian Government, through the Council of Australian Governments, review the efficacy of Western Australia's Strategic Airport Asset and Financial Management Framework in 2022, in accordance with the suggestion of the Productivity Commission. The Government should assess the efficacy of the Framework and determine its suitability for application across all jurisdictions.

Recommendation 4
10.74 The committee recommends that the Australian Government complete, as a matter of priority, a financial analysis to determine the ongoing operational, maintenance and staffing costs of proposed passenger security screening enhancements at regional airports, as announced in the 2018–19 Budget. The analysis should further consider ongoing security costs at regional airports more broadly.

Recommendation 5
10.75 The committee recommends that following a financial analysis into the ongoing costs of the provision of security screening at regional airports, the Australian Government consider providing ongoing financial assistance to those regional airports which have been identified as requiring passenger security screening enhancements as part of the 2018–19 Budget, where required.

Recommendation 6
10.86 The committee recommends that over the forward estimates, the Australian Government ensure the ongoing operation and funding of the Regional Aviation Access Programme and its component programs (the Remote Airstrip Upgrade Programme, Remote Air Services Subsidy Scheme and the Remote Aerodrome Inspection Programme).

Recommendation 7
10.87 The committee recommends that the Australian Government undertake a review into the funding of regional and remote aerodrome infrastructure and maintenance, to ascertain whether financial support to such aerodromes should be increased, and whether the current grants programs are the best means of financial assistance. Local councils, as airport operators, should be consulted as part of the review to determine the annual financial impact on councils of aerodrome operation and maintenance.

Recommendation 8
10.96 The committee recommends the Transport Ministers of the Council of Australian Governments develop a nationally consistent framework for the tender process, implementation, operation and review of regulated routes in each jurisdiction. The framework should have a particular focus on improving the overall transparency of the operation of regulated routes. In developing the framework, affected communities should be consulted, particularly in jurisdictions where regulated routes are identified as being beneficial to the provision of regional air services.

Recommendation 9
10.105 The committee recommends the Transport Ministers of the Council of Australian Governments develop a nationally consistent framework which, by leveraging each state's purchasing power, aims to expand access for regional communities to initiatives such as community and compassionate fares, particularly for 'last minute' flights. The framework, which should be developed in consultation with airlines, should encourage greater transparency around the operation of such fares, and consider the feasibility of allowing residents in regional, rural and remote areas to access subsidised airfares through online purchasing.

P9 – Comment.
 
Recommendation 10 1/2
 
The IOS committee recommends the Transport Ministers of the Council of Australian Governments take a long, hard, close look at the fantastic cost, incredible operational hurdles unbelievable amount of time required and the unrealistic ‘administrative’ costs–all sanctioned and approved by government, through the CASA of establishing ‘competition’ on the routes in question. Acknowledging that the uncertainty of gaining approval and continuance of operation is the biggest disincentive for investment in local competition.


One bureaucrat to the other bureaucrat on announcement of the 9 Senate Inquiry recommendations: "Fancy some Wet Lettuce mayo with that smashed Avo sandwich?"  - MTF...P2