Eyre Peninsula leaders are calling for urgent reform to ensure reliable and affordable air services, saying Australia’s current aviation funding and regulatory settings are placing unsustainable pressure on regional communities.
The Eyre Peninsula Local Government Association (EPLGA) and Regional Development Australia Eyre Peninsula (RDAEP) have provided a joint submission to the Senate Inquiry into the State of Australia’s Aviation Sector, highlighting the critical role aviation plays across the region.
EPLGA President and Kimba District Council Mayor, Dean Johnson said aviation should be recognised as essential public infrastructure for regional communities and not treated as a purely commercial service.
“For communities on the Eyre Peninsula, aviation is not discretionary, it underpins access to health care, employment, education and investment,” President Johnson said.
“Unfortunately, low passenger volumes, monopoly airline services, high compliance costs and ageing infrastructure are pushing the system to breaking point.”
Three of the region’s 11 councils own and operate commercial airports at Port Lincoln, Whyalla and Ceduna.
The submission highlights the inequitable impact of federally mandated passenger security screening, which can add between $15 and $50 per passenger at small regional airports, compared with only cents per passenger at major metropolitan airports.
President Johnson said these costs are inevitably passed on to travellers.
“Regional airfares are already 52% higher per kilometre than capital city routes. The current security cost recovery model only widens the gap between metropolitan and regional Australia,” he said.
“Security is a national responsibility and it should be funded as such.”
RDAEP Chair, Sue Chase AM said the reliability and affordability of air services is fundamental to the region’s economic future.
“Aviation is critical to workforce attraction, tourism, regional investment and industry growth across the Eyre Peninsula,” Ms Chase said.
“Unpredictable services and high fares have real productivity impacts, forcing people to travel a day early or miss opportunities altogether.”
Ms Chase also warned of the risks posed by limited competition in regional aviation markets, with Whyalla and Ceduna both serviced by a single airline operator.
“The recent administration and sale of REX highlighted just how fragile the regional aviation market is,” she said.
“Without greater diversification and support for smaller aircraft operators, regional communities remain exposed to service withdrawals and sudden price shocks.”
The joint EPLGA/RDAEP submission calls on the Senate Committee to recommend:
- Structural reform of aviation security cost recovery, including a uniform national levy applied across all screened airports;
- Permanent, sustainable funding for regional airports through an expanded or new formula-based federal program;
- Measures to diversify the regional airline market and reduce single-operator risk; and
- Improved national data collection and transparency on regional aviation costs and charges.
The full submission can be downloaded here.
