1. AIR SERVICE TRENDS IN REGIONAL AUSTRALIA Poh Ping Lim BTRE Transport Colloquium 14 & 15 June 2006

2. Definition Regional air services All regular scheduled air services: a)Between metropolitan areas and regional areas; b) Between regional areas.

3. Definition Regional areas and metropolitan areas Outer regional Remote Very remote Metropolitan Regional Major cities Inner regional Australian Bureau of Statistics (ABS) Remoteness Area Classification

4. Definition Regional airports Regional air routes All air routes which provide regular scheduled air services either to or from regional areas. All airports located in regional areas as defined by the ABS Remoteness Area Classifications.

5. Air service trends Three basic components of air service development : Airports Airlines Air Passengers

6. Number of regional airports served Between 1984 and 2005, on average approximately five regional airports have lost their airline services each year. 240 171 280 160 210

7. Number of regional airports served Post deregulation Pre deregulation Average of 2 to 3 airports have lost airline services per annum Average of 8 to 9 airports have lost airline services per annum

8. Number of airlines served on regional air routes 53 Net loss of 13 airlines Net loss of 3 airlines 50 47 Net loss of 3 airlines 34

9. Number of regional air routes

10. Air passenger movements at regional airports Annual growth rate = 3.5% 0.8% 4.8%

11. What is the state of regional aviation? In crisis ? Contracting ? Number of airports Number of of airlines Number of air passengers Expanding ?

12. Regional air routes by route distance

13. Regional air routes by route distance up to 1000km

14. Regional air passengers by route distance up to 1000km

15. Regional aircraft movements by aircraft type

16. Regional air routes by aircraft seating

17. Concluding observations Airports Airlines/routes Air passengers Main features in regional aviation trends Before 1990, an average of 8 to 9 regional airports have lost their airline services per annum (Over a period of 8 years). After 1990, an average of 2 to 3 airports have lot their airline services per annum (Over a period of 8 years). Total net loss of 19 airlines between 1984 and 2005 and total net loss of 13 airlines between 1998 and 2005. Number of air routes have declined rapidly after 1990. Between 1984 and 2005, the annual growth rate of air passenger movements at regional airports is about 3.5%. The annual growth rate is less than 1% before 1990 and close to 5% after 1990.

18. Important questions Is there a problem? If so, where and what? Why is it a problem? Should governments intervene? What are the most efficient and effective solutions?

19. Thank You! www.btre.gov.au www.btre.gov.au