Towards a new beginning a blueprint for recovery
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Towards a New Beginning: A Blueprint for Recovery. Michael Bridge CEO - Airnorth Regional Chairman - RAAA. Outline. What Is Regional Aviation? RAAA Today The Issues Today National perspective Industry perspective The Future Blueprint For Recovery. Who Is Regional Aviation?.

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Towards a New Beginning: A Blueprint for Recovery

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Towards a new beginning a blueprint for recovery

Towards a New Beginning:A Blueprint for Recovery

Michael Bridge

CEO - Airnorth Regional

Chairman - RAAA

BTRE COLLOQUIUM


Outline

Outline

  • What Is Regional Aviation?

  • RAAA Today

  • The Issues Today

    • National perspective

    • Industry perspective

  • The Future

  • Blueprint For Recovery

BTRE COLLOQUIUM


Who is regional aviation

Who Is Regional Aviation?

  • Regional Airlines

  • Charter Operations

  • Aeromedical Operations

  • Aerial Work Operations

  • Maintenance Organisations

  • Regional Flying Schools

  • Regional Airports, and

  • The Businesses That Support Them

BTRE COLLOQUIUM


The raaa today

The RAAA Today

BTRE COLLOQUIUM


The issues today national

The Issues Today - National

  • Changing demographics

  • Market based policies

  • Smaller communities losing services:

    • Social costs

    • Economic costs

      • Medical

      • Agri-business

BTRE COLLOQUIUM


The issues today industry

The Issues Today - Industry

  • Inadequate return on investment and effort

    • Runaway costs:

      • CASA

      • Security

      • Fuel

      • Airports

  • Looming staff shortages esp pilots and LAMEs

  • Aging aircraft

BTRE COLLOQUIUM


The future

The Future

  • Depends both on Government and ourselves

    • Need a market

    • Need access to:

      • appropriate airports

      • enough adequately trained staff

      • appropriate aircraft (and capital)

    • Need fair return on investment and effort:

      • support from market

      • appropriate regulatory environment

      • appropriate economic conditions

BTRE COLLOQUIUM


Blueprint for recovery

Blueprint for Recovery

  • Recognise things we can not change:

    • Declining populations in the bush

    • Lack of economies of scale

    • Lack of replacement low capacity aircraft

  • and work on the rest

BTRE COLLOQUIUM


Blueprint for recovery1

Blueprint for Recovery

  • Industry:

    • Work more closely with other segments:

      • Strength through unity

    • Work together more within own segment:

      • Create economies of scale

    • Help fix the LAME problem:

      • Improve pay and conditions for technical staff

      • Employ apprentices

    • Improve marketing of industry:

      • Recruitment

      • Attractiveness of air travel

      • Reasonableness of fare structure

BTRE COLLOQUIUM


Blueprint for recovery2

Blueprint for Recovery

  • Government:

    • Recognise significance of regional aviation

    • Make CASA less intrusive, more efficient, less costly

      • Review Act and Regulations

      • Make CASA more accountable

    • Reduce security cost burden on industry

    • Control airport pricing and activities

    • Facilitate technical training like academic training

    • Provide tax relief for upgrading (depreciation and CGT)

    • Develop RASS to encourage expansion of services

BTRE COLLOQUIUM


Conclusions

Conclusions

  • Regional air services are:

    • essential to rural and remote communities’:

      • social well-being

      • economic well-being

    • in decline

    • held back by

      • small market size/long routes

      • runaway costs:

        • government charges (CASA, security)

        • fuel

        • airports

        • lack of economies of scale

      • looming staff shortages

      • aging aircraft

  • It is time for change

BTRE COLLOQUIUM


Conclusions1

Conclusions

  • Unless things change, the end is in sight for many more regional services and regional operators

  • Industry’s challenge –

    • to work together to develop some economies of scale

    • to provide better pay and conditions for staff

    • to market itself better to the public

  • Governments’ challenge –

    • to change policies to

      • remove unnecessary economic burdens (federal and state level)

      • remove unnecessary regulatory burdens

      • encourage aviation

      • extend the incentives for academic training to technical training

        We don’t want a hand out – we seek a fair go

BTRE COLLOQUIUM


Towards a new beginning a blueprint for recovery

THANK YOU

BTRE COLLOQUIUM


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