In the wake of the news that Bonza has moved to voluntary administration, Regional Capitals Australia is renewing our calls for the federal government to recognise the vulnerability of regional aviation and heed the warning of ongoing challenges to the viability of regional airports.
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The grounding of Bonza of course means that regional airports who have made costly adjustments to accommodate new services through infrastructure upgrades, increased security measures and staffing could well be left stranded with empty departure gates.
This rapid development should send a clear message to the Australian government that regional airports, from Albury to Geraldton, face a multitude of financial risks that can sometimes materialise overnight.
A regional airport is one of the hardest working assets in any community. Despite largely being owned and operated by local government, the facilities allow state and federal governments to deliver services that range from healthcare, emergency services and border protection, as well as connecting agriculture, tourism and mining broader opportunities.
Overwhelming regulatory and security costs
It is not well known that almost 60 per cent of regional airports operate at a loss, burdened by overwhelming regulatory and security costs and inadequate support for infrastructure funding.
This unsustainable situation threatens not only the airports themselves but also the local economies they support. Local governments, and by extension regional ratepayers, are often required to subsidise these deficits, providing at times an impossible choice for local leaders on how to prioritise funding.
Recognising the urgency of these challenges, RCA has laid out clear recommendations as the federal government creates its new aviation policy to ensure these crucial community facilities can continue to serve regional residents and businesses.
The most important of these is to allocate $500 million to allow for regional airport maintenance and upgrades as well as support to ensure security arrangements are not creating extra costs for regional travellers.
The reliable operation of regional airports is not merely a convenience but a necessity for maintaining the socio-economic fabric of regional communities.
Bonza is not the first, nor do we suspect, the last airline that will face challenging economic circumstances.
It is our hope that a solution can be found to allow their operations to soar once again. Regardless of new developments for Bonza, supporting regional airports should be a national priority, one that allows for equality of opportunities to be connected - regardless of where you live.
