Department of Transport Western Australian State Aviation Strategy Draft for Public Comment - August 2013 CONTENTS 1. Minister’s foreword 4 2. Executive summary and key actions 7 3. Introduction 22 3.1. State aviation strategy governance 23 3.2. Strategy development process 23 3.3. Draft strategy – public comment 23 4. Western Australian aviation history 24 5. Policy context 26 5.1. Federal aviation policy white paper 26 5.2. National airports safeguarding framework 28 6. Western Australian aviation strategy vision and objectives 29 6.1. Vision 29 6.2. Objectives 29 7. Future aviation activity 30 7.1. Background – passenger and aircraft movement forecasts 30 7.2. Perth airport passenger and aircraft movements 30 7.3. Resource industry demand 32 7.4. Aviation activity forecasts 34 7.5. Aviation activity forecasts by GHD 36 7.6. Findings 38 7.7. Action 38 8. Airport planning 39 8.1. Public airport planning 39 8.2. Perth airport planning 40 8.3. Regional airport planning 42 8.4. Private airport planning 43 8.5. A second Perth metropolitan airport 43 8.6. A second Perth general aviation airport 44 8.7. An emergency alternative to Perth airport 44 8.8. Royal Australian Air Force Base Pearce 46 8.9. Findings 48 8.10. Action 48 9. Perth airport infrastructure 50 9.1. Background 50 9.2. Perth airport terminal development 50 9.3. Perth airport runway capacity 50 9.4. Perth airport airfield capacity enhancement 52 9.5. Constraints of nearby airports 54 9.6. Aircraft upsizing 54 9.7. Additional runway capacity 55 9.8. Additional runway capacity – implications for aircraft noise 55 9.9. Findings 57 9.10. Action 57 2 10. WA regional airports’ infrastructure 58 10.1. Introduction 58 10.2. Regional airport traffic scale and growth 59 10.3. Regional airport revenues 60 10.4. Regional airport infrastructure requirements 61 10.5. Regional airport investment planning arrangements 61 10.6. Recent and future regional airport infrastructure investment 62 10.7. Regional airport infrastructure investment funding sources 63 10.8. Regional airport reserve funds 66 10.9. Assessment of infrastructure investment planning adequacy 67 10.10. Regional airport security 67 10.11. Findings 70 10.12. Action 70 11. WA regional airports ownership and governance 72 11.1. Current arrangements – local government ownership and operation 72 11.2. Alternatives to local government ownership 73 11.3. Findings 75 11.4. Action 75 12. Regional airports development scheme 76 12.1. Background 76 12.2. RADS review 77 12.3. Revised RADS objective and guidelines 77 13. Tourism and aviation route development 78 13.1. Background 78 13.2. Western Australia’s tourism aviation objectives 78 13.3. Western Australia’s tourism industry segments 80 13.4. Findings 82 13.5. Action 83 14. Developing quality and affordable air services 84 14.1. Aviation route regulation in Western Australia 84 14.2. Western Australian intrastate airfares 90 14.3. Air freight 92 14.4. Findings 93 14.5. Action 93 15. Aviation training in Western Australia 94 14.1. Background 94 14.2. Findings 95 14.3. Action 95 3 FOREWORD FROM THE MINISTER It can be argued that Western Australia (WA) is the true birthplace of civil aviation in Australia, having the first scheduled passenger service and the earliest and largest State civil aviation network. WA is an enormous State covering one-third of the At Perth Airport, good progress has been made Australian continent, where effective transport and in developing the new Terminal 2, alongside the communication are heavily dependent on reliable current international terminal which opened early aviation services. This has been the case ever 2013. This terminal is initially servicing Alliance since some of the world’s first airline services were Airlines, Virgin Australia Regional Airlines (VARA) established here in the 1920s by aviation pioneers and Tiger Airways. This will be followed by a new like Sir Norman Brearley, Horrie Miller and Charles terminal facility to service Virgin Australia and, Snook. later, an expanded international terminal. Perth Airport will also be well served by the $1 billion WA is the engine room of the Australian Federal and State Perth Gateway project, which economy, generating 46 per cent of the nation’s will upgrade all of the major arterial roads in and merchandise exports by value, representing more around Perth Airport, making it much easier for than the exports of New South Wales, Victoria people and freight to get to and from the airport. and Queensland combined. Much of this output depends on reliable air services. Whether it’s These developments notwithstanding, it is ferrying tens of thousands of resources and energy imperative that Perth Airport now needs to bring industry fly-in/fly-out workers to mines in the forward the development of a third runway to Pilbara, the Eastern Goldfields and gas fields of the avoid damaging and disruptive delays to traffic, North-West Shelf, or sending tourists to Broome, particularly during the weekday morning take-off Esperance, Exmouth or Kununurra, or connecting and afternoon landing peak periods depended Western Australians everywhere to friends and on by many of the State’s resources and energy relatives, or allowing vital social services, aviation industries. plays a pivotal role in the State’s economic and While aviation is largely a matter of Commonwealth social development. jurisdiction, the risk to WA’s economic and social With the State’s economy and population growing development from our air services and airports at rates roughly double the national average, failing to keep up with demand is now too great demand for air services in Western Australia has for the State not to play a more active role in experienced extraordinary growth that has placed the aviation sector. This draft strategy proposes great strain on our airports to keep up. Just about a suite of actions whereby the State will work everybody who has flown anywhere from Perth in in partnership with airports, airlines and the the past five years has experienced congestion resources and energy sector to ensure adequate and delays at Perth Airport owing to the rate of services continue to meet our demands. It also growth in aircraft and passenger numbers. The prudently encourages private investment in our problem is by no means confined to Perth, with regional airports, which will serve the State well the Pilbara airports also struggling to keep up with considering the significant demand on public funds the necessary expansion of terminals, runways for investment in health, education, roads and and other airport infrastructure. transport to meet the needs of a rapidly growing population and economy. 4 This draft State Aviation Strategy is the first developed for WA. It complements the State’s While aviation is largely a matter other key transport strategies covering freight and of Commonwealth jurisdiction, the public transport services. It is aimed at supporting the economic and social development of WA risk to WA’s economic and social through the provision of safe, affordable, efficient development from our air services and effective aviation services and infrastructure. It and airports failing to keep up with is also aimed at providing a sound framework for demand is now too great for the State policy setting, and future planning and investment not to play a more active role in the in Western Australian international and domestic air services and airport infrastructure. aviation sector. The draft State Aviation Strategy has been prepared by the Department of Transport in conjunction with key government agencies covering economic development, planning, tourism, local government and regional development. It reflects close consultation with airport owners, airlines, the resources industry, and key players in general aviation, as well as the results of aviation strategy workshops held in regional centres across the State. I am pleased to release the draft State Aviation Strategy for broad public comment. Hon Troy Buswell MLA Treasurer; Minister for Transport; Emergency Services 5 Broome Airport (source - Broome Airport) 6 PART 2 EXECUTIVE SUMMARY The sheer size and isolation of Western Australia (WA) mean there is little choice but aviation for travel between Perth and other states and between Perth and most of the State’s major regional centres. In recent years the State’s dependence on aviation has been brought into sharp relief by the resources industry’s increasing reliance on fly-in/fly-out (FIFO) workforces. From these perspectives, aviation plays an utterly pivotal role in both economic and social development of the State. The aviation industry in WA caters to the air service Western Australian Aviation needs of the resource sector, corporate sector, Strategy vision and objectives tourism and leisure sector and local communities. In the past 10 years, aviation passenger and The vision for the strategy is that Western Australia aircraft movement in WA have grown considerably. will have a world-class aviation network and It has been a challenge for our major airports to infrastructure that supports and promotes the keep pace with the growth in demand, leading to State’s economic and social development. shortfalls in airport capacity causing congestion The vision will be attained through the pursuit and and delays to be commonplace, especially at achievement of the following objectives for the Perth and the Pilbara airports. These shortcomings strategy: are already seriously affecting productivity around the State as well as causing considerable a. To support the economic and social inconvenience to the travelling public. development of Western Australia through the provision of safe, affordable, efficient and This draft State Aviation Strategy is the first effective aviation services and infrastructure. developed for WA and complements the National Aviation Policy White Paper and the State’s other b.