6 Threats to Regional Aviation
3. Audit risks
6 Threats to Regional Aviation
Carbon Tax
Additional cost burden
Air services will be taxed
Carbon Tax proposed to be $23 per mt CO2 equiv
Rex Consumption approx. 115,000 mt CO2 pa
No shielding for regional air services
Regional air services should be shielded at 100%
En Route Scheme
Rex thin routes potentially affected once rebates stops: Taree, Grafton, Melbourne/Griffith, Bathurst, Moruya, King Island and Merimbula Security Screening
Current Rules
Required for aircraft above 30t (E170)
From 1 July 2012 for aircraft above 20t (Q400)
Not required for SAAB 340 unless within legislated 30 minute window
Regional passengers still pay for security at airports where facilities are shared with large aircraft
Cost of Security
Infrastructure costs between $1m and $5m
Capital and running costs add $20 to $30 to the airfare for regional ports
Double this for thin routes making them unviable
Regional aircraft already have hardened cockpit doors to prevent hijacking
Security screening should be risk based
CASA Funding
Unfair Burden
Intl Flights and major airports do not pay although consuming considerable CASA resources
Regionals are paying disproportionately
Increase to Rex alone was $300k p.a.
RAAA member airlines an extra $2.8m p.a.
Funding of Regulators should be provided out of consolidated revenue and not by industry as with the Office of Transport Security, state rail authorities and the ACCC etc
CASA Proposal on New Technology
CASA Discussion Paper
Ignored industry/Air services official consultation process through ASTRA
Mandates expensive new technology in older regional aircraft
Prohibitive cost (Rex SAAB fleet >$12m)
Not practical for all older aircraft (Rex may be forced to retire 19 seat Metros) & may result in the closure of some regional airlines
No cost/safety benefit case
Some technologies have a benefit for regional aircraft (e.g: approaches with vertical guidance, ADSB OUT)
The most expensive have
6 Threats to Regional Aviation
Carbon Tax
Additional cost burden
Air services will be taxed
Carbon Tax proposed to be $23 per mt CO2 equiv
Rex Consumption approx. 115,000 mt CO2 pa
No shielding for regional air services
Regional air services should be shielded at 100%
En Route Scheme
Rex thin routes potentially affected once rebates stops: Taree, Grafton, Melbourne/Griffith, Bathurst, Moruya, King Island and Merimbula Security Screening
Current Rules
Required for aircraft above 30t (E170)
From 1 July 2012 for aircraft above 20t (Q400)
Not required for SAAB 340 unless within legislated 30 minute window
Regional passengers still pay for security at airports where facilities are shared with large aircraft
Cost of Security
Infrastructure costs between $1m and $5m
Capital and running costs add $20 to $30 to the airfare for regional ports
Double this for thin routes making them unviable
Regional aircraft already have hardened cockpit doors to prevent hijacking
Security screening should be risk based
CASA Funding
Unfair Burden
Intl Flights and major airports do not pay although consuming considerable CASA resources
Regionals are paying disproportionately
Increase to Rex alone was $300k p.a.
RAAA member airlines an extra $2.8m p.a.
Funding of Regulators should be provided out of consolidated revenue and not by industry as with the Office of Transport Security, state rail authorities and the ACCC etc
CASA Proposal on New Technology
CASA Discussion Paper
Ignored industry/Air services official consultation process through ASTRA
Mandates expensive new technology in older regional aircraft
Prohibitive cost (Rex SAAB fleet >$12m)
Not practical for all older aircraft (Rex may be forced to retire 19 seat Metros) & may result in the closure of some regional airlines
No cost/safety benefit case
Some technologies have a benefit for regional aircraft (e.g: approaches with vertical guidance, ADSB OUT)
The most expensive have