Regional Capitals Australia (RCA) has taken its call for greater investment in regional airports to Canberra, warning a Senate inquiry that limited airport funding and airline competition are putting essential regional air connections at risk.
RCA Chair and Dubbo Regional Councillor, Josh Black (pictured), has presented the organisation’s submission to the Senate Rural and Regional Affairs and Transport References Committee, which is examining reliable and affordable aviation services for rural, regional and remote communities.
During the hearing, Cr Black stated that financially sustainable regional airports and affordable aviation underpins regional connectivity, community safety and resilience.
“Regional aviation has a unique ability to provide equality of opportunity, by closing distance and connecting people to specialist health, education and business services.” Cr Black said.
“That benefit only exists when things are working well and to be frank at the moment, things are not working well.
“The fact is that regional communities are being hit twice, once to maintain their airports through rates and then through high airfares.”
During the hearing, RCA presented recent findings from the 2026 ACIL Allen Airport Sustainability Survey, commissioned by RCA and the Australian Airports Association which found:
- 73% of regional airports surveyed operated at a loss;
- $519,000 was the median loss across surveyed airports;
- 67% of surveyed airports are deferring required capital investment due to funding constraints; and
- 63% cannot fund required safety or security upgrades.
The same survey found:
- 93% of airports supported Royal Flying Doctor Service activity;Â
- 83% emergency services; and
- 61% search and rescue.Â
Cr Black said many of these services are provided without cost recovery.
“Local Governments who mostly own and operate regional airports are being asked to maintain infrastructure that state and federal government and communities rely on, without the funds needed to support the airport operation” he said.
RCA’s submission also highlighted that the lack of competition pushing airfares higher, evident by government figures that show that
- 56% of regional routes were served by a single airline;Â and
- regional flights cost on average 52% more per kilometre.
“Anyone who fly’s regionally sees it, exorbitant fares, late cancellations, services that will not get your where you need to be at a reasonable time,” Cr Black said.
“People need a service they can afford and rely on. Where there is little competition, a fare increase or a withdrawn service can put health care, study or work further out of reach. Where you live should not determine your access to those opportunities.”
RCA asked the committee to recommend sustained airport funding, fairer security costs, targeted affordability measures and protection for essential routes when airlines restructure or withdraw. These measures would sit within a national framework for regional aviation, supported by long-term funding pathways.
“The Australian Government could take the immediate action in the May 2027 Budget by backing RCA’s $200 million Regional Airport Fund ask,” Cr Black said.
