Aviation roundtable targets competition and sustainability
Leading industry stakeholders met last week to find a solution that would bring down airfares.
Northern Territory
Don't miss out on the headlines from Northern Territory. Followed categories will be added to My News.
Population and competition - they are the silver bullets to emerge from a deep-dive into what needs to be targeted to stabilise and normalise the Northern Territory’s aviation sector.
As Territory travellers grudgingly move on from almost two years of shockingly high airfares caused in party by Defence’s upgrades to the airport runway, the NT News sought answers to the questions Territorians ask every time they book an interstate and international flight, or an Alice Springs-Darwin run.
Territory aviation stakeholders including senior airline figures travelled to Darwin to discuss options for better services and cheaper flights at a roundtable hosted by the NT News at Mindil Beach Casino Resort.
As well as talk, the event was accompanied by a flurry of new route announcements by the three main airlines serving the Territory.
The local tourism sector was led by Tourism Top End and Tourism Centralian Australia heads Samantha Bennett and Danial Rochford with Department of Tourism and Hospitality chief executive Suzana Bishop and Department of Business and Asian Relations chief executive Hayley Richards there for the NT Government.
Major participants were NT Tourism Board chair Michael Bridge, Qantas NT and SA regional manager Allan Sommerville, Jetstar Airways chief executive Stephanie Tully, Virgin Australia senior figures Jim Fuoco and Stephen Beckett, Air North chief executive Daniel Bowden, Trade and Industry Minister Robyn Cahill and Airport Development Group chief executive Tony Edmondstone.
Solomon MP Luke Gosling, who was at parliamentary sittings in Canberra, was represented by senior staffer Zach Cork with Cathryn Tilmouth from Minerals Council NT, DCOH managing director Shane Dignan, Voyages chief executive Matt Cameron-Smith, CDU’s Scott Bowman, AFLNT's Sam Gibson, Tamboran’s Nicole Manison and Santos’ Peter Kirkpatrick contributing.
Put on the table were issues as varied as cabotage, local tourism product, maximising the tourism shoulder season and workforce - but ultimately it was population and competition that emerged as possible solutions.
Speaking after the roundtable, Danial Rochford and Samantha Bennett agreed on the importance of competition through sustainability.
“Competition is always a good thing for consumers when it comes to capacity and pricing,” Mr Rochford said.
“In Alice Springs, for instance, we often see the most competitive fares on Adelaide and Brisbane routes and these are the two that have competition between Qantas and Virgin.
“Getting a second carrier like Virgin Australia on the Sydney and Melbourne routes would be a perfect scenario for us.
“With load factors of near 90 plus-going in and out of Melbourne to Alice Springs, Bonza proved that there is latent demand in our community for cheaper and more regular air services.
“Our big collective role now is to fill seats and to make sure there is a strong business case for airline operators to have faith in Central Australia.”
Ms Bennett pointed to the same outcome.
“If we have a sustainable industry, then our airfares will come down. It’s as simple as that,” she said.
“The more people we’ve got on planes, the more capacity we’ll get and the better fare structures we’ll get.”
Without Singapore Airlines’ gateway route, Territorians would first have to travel interstate to fly to a major northern hemisphere port.
Qantas will add to the mix from March 30 when it launches its A220 service into Singapore.
Qantas’ Northern Territory history is well-known - the NT stands for Northern Territory - and along with Airnorth it’s one of only two airlines still operating that were here at the turn of the 21st century.
At present, it services East Timor, Alice Springs, Adelaide, Brisbane, Melbourne, Sydney, Cairns and Perth, with a seasonal Canberra leg set to resume in June.
Virgin flights from Darwin head to Melbourne, Brisbane, Perth, Sydney, Adelaide and Canberra and Alice Springs from Brisbane and Adelaide, but the Darwin to Adelaide route will end soon.
Out of Darwin, Jetstar flies to Bali, Gold Coast, Sydney, Melbourne and Adelaide.
Airnorth’s major routes from Darwin include Perth, Cairns, Broome, Townsville and Dili, and from Alice Springs to Perth and newly-minted Cairns route.
An aviation analyst who requested anonymity for professional reasons said remoteness could be an advantage and a disadvantage.
“It’s a four-and-a-half hour flight from southern ports, which is actually a lot of flying by global standards,” he said.
“The advantage though is, particularly for the tourism sector, is that the Northern Territory is typically a bucket list destination. People do want to come here, we’ve just got to give them a reason to.”
More Coverage
Originally published as Aviation roundtable targets competition and sustainability
Why workers housing is pure gold for Tennant Creek
Tennant Creek’s accommodation shortage is set to be eased with a million dollar plan. Read what’s being built.
How Darwin’s rich and diverse aviation heritage started with a race
When Territorians are paying big bucks for air tickets, remember the first ever passenger was paid £10,000. Read on.