FOI documents show regional airfares costs could rise significantly
At a time when SA’s regions need all the visitors they can attract, Freedom of Information documents show regional airfares could skyrocket.
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New screening measures at regional airports could threaten the viability of services and force crippling airfare price rises of up to $69 a ticket, a government report has warned.
Centre Alliance senator Rex Patrick this month moved a disallowance motion against the new regulations, which require extra security measures at regional airports, such as body and baggage scanners.
Federal grants will help pay for the equipment costs but the councils that manage regional airports would be left with the annual operational bills.
Senator Patrick said he had obtained a report by the Department of Infrastructure, Transport, Cities and Regional Development, under Freedom Of Information, that estimated those bills at $1.2 million to $2 million annually just for Whyalla airport. This would add $53-$69 to the cost of each ticket.
QantasLink chief executive John Gissing said the new measures would have a significant impact on Whyalla, Port Lincoln and Kangaroo Island airports.
“We’ve been very clear with the government that would put in jeopardy those services entirely, he said.
Senator Patrick said to deal with these significant costs, councils would likely need to pass on the costs to airlines through increased landing fees, or raise council rates.
“Raise the cost of airfares and passenger numbers will go down,” he said.
Senator Patrick said after Rex Airlines announced this month it would no longer fly to Kangaroo Island, the regional tourism sector did not need any extra challenges.
He said while the FOI case study showing the operating costs of $1.2 million to $2 million was based on services to Whyalla, Port Lincoln was also likely to be hit with similar costs.
“It would be really devastating for both of these towns,” he said.
Senator Patrick says councils should not have to carry the financial burden of a national security initiative.
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Lower Eyre Peninsula Council operates the Port Lincoln Airport and Mayor Jo-Anne Quigley said the facility was run on a user-pays basis. She said council was still trying to work through how any extra charges would be covered by consumers.
“We have had good growth in passenger numbers in the past month, up 9 per cent on the same time last year, and that’s following three months in a row of growth. We want to see the airport used to its full capacity as much as possible,” she said.
A representative from Rex Airlines said as the screening required applied to passengers on planes with 40 or more seats, it was unlikely to affect the airline. Senator Patrick’s disallowance motion will be voted on by May 12.