Last year was a boon year for international air services to Australia but even more is promised for 2016 and the best part is that regional airports are a major beneficiary, more than at any time in the past.
By the end of 2016, all state and territory capitals, except for Hobart, will have direct international air connections. And the Tasmanian capital could join the international set within a couple of years following the approval of the airport’s 20-year plan to develop the facility to expand its overseas flights beyond those to Antarctica within five years – one suspects a lot earlier.
But the real excitement must lie with regional airports that are growing exponentially as gateways for tourists led by the spectacular performance of Gold Coast Airport at Coolangatta. The airport recorded in excess of six million passengers for the first time in a 12-month period last year. Of that number, international movements showed a 5.1 percent increase on 2014 to 942,000 (excluding transit passengers), according to COO Marion Charlton, making GCA the fifth busiest international airport in the country.
New services to the Chinese city of Wuhan, Hong Kong and to Fiji were added during 2015, along with news that AirAsia X will extend its existing Kuala Lumpur to Gold Coast service to Auckland this month, joining a heavily serviced transTasman market that now includes Emirates, LAN Chile, China Airlines, Philippine Airlines and Singapore Airlines (from Canberra in September) joining the ‘traditional’ local carriers (Air New Zealand, Qantas, Jetstar, Virgin). One would think that this was getting towards overkill status but transTasman traffic continues to increase each year, direct services to Queenstown showing very impressive growth (15.5 percent Y-O-Y).
An impressive multimillion dollar GCA facilities and terminal upgrade will be completed next year in time to host the Commonwealth Games in 2018 and accommodate growth at the airport through to 2023.
The number two international regional airport is Cairns – on target to service five million passengers a year with around 23 percent being overseas generated, boosted by new services by Philippine Airlines (to Manila and Auckland), SilkAir (direct to Singapore) and JetStar (Bali).
“Further growth with Hong Kong Airlines and China Eastern Airlines starting their services this month [53 CEA flights to Shanghai in January-February and HKA to Hong Kong and Gold Coast, recently confirming a thrice-weekly service] and we now have our sights on a new target of five million passengers in a year,” aeronautical general manager Janice Antonson said.
At present, Cairns has direct connections to Osaka, Tokyo, Manila, Denpassar, Hong Kong and Auckland.
Queensland also has the Sunshine Coast Airport at Marcoola that has seasonal Air New Zealand flights to Auckland, but it is well documented that it would like to have year-round international services.
Townsville may be the next to re-join the international regional airport clan. In early 2016, Townsville Enterprise launched a survey of the local populace to gauge numbers of who would support direct flights from overseas. Auckland would appear to be the focus destination (there were Townsville-Auckland flights about 20 years ago).
JetStar successfully ran a series of charters to Bali from Townsville last year and this is seen as a precursor to regular services. “The focus remained on ensuring long-term sustainability of Townsville-Bali services,” says airport COO Kevin Gill. “We have aspirations to increase further services to international destinations.”
Townsville mayor Jenny Hill goes further: “Bali gives us the link into Asia and Europe and Auckland not only gives us access to New Zealand but provides us with a direct link with the west coast of America.”
TEL tourism and events general manager Bridget Woods said, “One of the major drivers is the VFR market. We would like to bring either Papua New Guinea or New Zealand online at some point this year.”
And the Whitsundays could be next, according to federal member for Dawson, George Christensen. “Following my approaches to the minister for immigration and border protection Peter Dutton, I have been informed that his department representatives are working with management at both Mackay and Whitsunday Coast airports to look at airport infrastructure and identify border agency resourcing requirements so we can make these plans a reality.
“I am told they have already visited the Mackay airport to meet with management there. The Liberal National government has been providing free customs and immigration services to the Townsville airport since it began international flights to Bali last year, and I am pushing for similar arrangements for international airport operations at both Mackay and the Whitsundays.”
Charter flights to Auckland by Flight Centre-owned Avmin to Auckland are beginning this year but charters are also under discussion with Cathay Pacific, Air Asia X and Scoot. There is also Wellcamp at Toowoomba. This privately owned, built and funded $200 million international airport took the Wagner family group just 12 months to build (compare that to the 30-year talk-a-thon over Sydney’s second airport!) and Cathay Pacific flew a trial 747 cargo flight there last year from Hong Kong. While more international freight connections are a certainty, there is also scope for passenger services to overseas destinations as well.
Canberra has only had a brief taste of international services in 2004 when Air Pacific (now Fiji Airways) ran a service to Nadi. Privately owned by the Snow family, the federal capital will get its long-desired overseas links in September when Singapore Airlines begins flights to Singapore and Wellington on its Capital Express. Owner Tony Snow remarked the flights were “full realisation of a dream when we bought this dog of an airport”. The Snows made it happen only after a $450 million upgrade of facilities. Regional airports around NSW have been awarded $35 million in state government funding to rehabilitate and upgrade their facilities, in a move that will also help promote tourism in places like the Hunter Valley, Coffs Harbour, Byron Bay, Mudgee, Tamworth, Broken Hill, Lismore, Moree, Wagga Wagga, Griffith and the Snowy Mountains.
NSW minister for regional development, skills and small business John Barilaro said 17 projects had been approved so far, with another 12 undergoing further assessment, as part of a plan to provide up to $50 million to regional airports announced earlier this year. But only one appears to have international aspirations.
Newcastle Airport, the gateway to the Hunter Valley, has received $855,000 in funding to support the fit out of an international processing area of its recently completed terminal expansion project.
Australian Airports Association chief executive Caroline Wilkie said she believed Newcastle Airport had the potential to successfully attract seasonal services to New Zealand, as the Sunshine Coast has done.
“You have to have the facilities for people to come,” she said. “If you look at the growth of Newcastle and the Hunter region as well it certainly makes sense. In addition to inbound tourism, the Air New Zealand flights to the Sunshine Coast have also allowed residents smooth one-stop connections to North America through Auckland.”
While fully capable of limited international flights, Alice Springs Airport seems unlikely to get any full-time services in the near future. It does get the odd visit from overseas (a Russian Antonov 74-200 owned by UT Air cargo aircraft arrived in December) and is now the world’s newest “graveyard for aircraft” where out-of-service aircraft go for storage until buyers can be found.
Charter operations could be a possibility in the future.
The Pilbara airport at Karatha in WA has just opened a $35 million expansion but, since the downturn in the resources sector, traffic (especially fly in-fly out) has fallen away and it may be an option to bring in tourist services to uplift passenger numbers. “The airport was also looking to attract international flights and Singapore was the most likely option due to the links with the oil and gas industry,” City of Karratha mayor Peter Long said at the opening of the airport’s new infrastructure.
Pilbara MP Brendon Grylls says he hopes a review on northern and mid-west airport traffic will result in additional and cheaper flights to the regions.
He has launched the regional Air Route Connectivity Survey that will encompass 15 airports in the area. It aims to identify tourism opportunities, future business growth and accessibility. “We’re now looking at exciting opportunities in agriculture and tourism but again connectivity to our capital in Perth, to our trading partners and to international destinations will be vital,” he said.
Survey development was coordinated by the Shire of Exmouth’s Jenny Kox, after talks held on air route connectivity at the North West Australian Airports Forum in July. Ms Kox said, “The survey provides the community the opportunity to comment on potential domestic and international air routes outside of Perth they would like considered,” she said.
The airports include Broome, Carnarvon, Derby, Exmouth, Fitzroy Crossing, Geraldton, Halls Creek, Karratha, Kununurra, Newman, Onslow, Pannawonica, Paraburdoo, Port Hedland and Shark Bay.
At this time, Adelaide is South Australia’s only international airport with services provided by Cathay Pacific, Qatar Airways (beginning in May), Singapore Airlines, Air New Zealand, Emirates, Jetstar, Virgin Australia and Malaysian Airlines. In Victoria, Avalon in Geelong may be in the running for overseas connections. Federal member for Corangamite Sarah Henderson says: “I am very keen to see Avalon finalise international flights to our area.”
A major wave of airport privatisations is a highly likely prospect with debt-laden councils looking to sell or lease their airports to corporations, superannuation and infrastructure funds. The town of Port Hedland last month led the way by voting to privatise its regional airport through a long-term leasing deal with AMP Capital and Infrastructure Capital Group to run this regional airport for the next 50 years, raising $205 million in the process.
The Whitsunday Regional Council followed Port Hedland’s lead and launched a campaign seeking expressions of interest for a 49 percent stake in its airport. Other regional councils such as the Sunshine Coast Council, Newcastle City Council and Port Stephens Council, Ballina Shire Council and Lismore City Council have all been reported as considering whether there is the opportunity for private sector investment to shoulder the significant costs involved in operating an airport.
Notwithstanding the concerns of some sectors of the voting public, regional councils have identified many reasons to privatise. The Australian Airports Association estimates that as many as 50 percent of Australia’s regional airports owned by local government are operating at a loss.
Privatisation brings with it not only the ability for a local authority to raise additional capital and seek new resources from private markets to improve the aeronautical services of their airport, but at the same time increase competition among airlines providing greater choice and cost reduction for their passengers.
Read the full article in this month’s issue of Resort News.
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