Bendigo Airport Strategic Plan 2017

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STRATEGIC PLAN

May 2017 2ii CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

City of Greater Bendigo:

Bendigo Airport Strategic Plan

This project has been conducted by REMPLAN

Project team

Nick Byrne Principal Consultant

Phillipa Allan Consultant

November 2016 REMPLAN and the City of Greater Bendigo hold all rights in relation to this document. Reproduction or distribution of this document in part or as a whole, requires the express permission of either of these parties.

Disclaimer All figures and data presented in this document are based on data sourced from the Australian Bureau of Statistics (ABS) and other government agencies. This document is provided in good faith with every effort made to provide accurate data and apply comprehensive knowledge. However, REMPLAN does not guarantee the accuracy of data nor the conclusions drawn from this information. A decision to pursue any suggestions mentioned in the report is wholly the responsibility of the party concerned. REMPLAN advises any party to conduct detailed feasibility studies and seek professional advice before proceeding with any action and accept no responsibility for the consequences of pursuing any of the findings or actions discussed in the document.

Contact Us: Remplan Po Box 5006 Sandhurst East, Bendigo, VIC 3550 Tel: 1300 737 443 Email: [email protected] CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN iii3

Contents

Disclaimer ii

1 The Strategic Plan 4

1.1 Purpose of the plan 4

1.2 Structure of the plan 4

2 The Bendigo Airport 5

2.1 Vision 5

2.1.1 Economic statement 5

2.1.2 Objective 5

2.2 Current context 7

2.2.1 The Bendigo Airport Precincts 8

2.3 Drivers of change 10

3 Strategic Directions 11

3.1 Strategic Direction 1 – Connected and active regional transport hub 11

3.1.1 Strategic Direction 1 - Actions 12

3.2 Strategic Direction 2 – Transformative operations and project delivery 14

3.2.1 Strategic Direction 2 - Actions 14

3.3 Strategic Direction 3 – Ongoing financial viability 16

3.3.1 Strategic Direction 3 - Actions 18

3.4 Strategic Direction 4 – Governance for the future 19

3.4.1 Strategic Direction 4 - Actions 20

4 Implementation of the Plan 21

4.1 Implementation, monitoring and review 21

4.1.1 Summary of Strategic Plan actions 21 4 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

1. The Strategic Plan

Bendigo is located in the geographic centre of 1.1 Purpose of the Strategic Plan the state. The City of Greater Bendigo covers an The Plan has been developed to provide a clear set of area of 3,000 square kilometres and is home to actions and associated tasks to guide development at over 110,000 people. Bendigo is the largest urban Bendigo Airport over the next five years (until 2022). area in northern Victoria and southern New South Wales. Bendigo provides a geographic base for The Plan provides strategic guidance to enable an extensive region supplying high order services the Bendigo Airport to successfully transition from a registered airport with general aviation activities in fields such as health, education, finance to a certified and commercially viable airport that and banking, advanced manufacturing, food includes Regular Passenger Transport (RPT) services. processing, arts and culture, and government It will also outline opportunities for the ‘non-airside’ services. land, which underpins Bendigo Airport’s long term commercial viability. With the largest capacity airport in north central Victoria the region served is extensive. The map Recommendations for the successful implementation below indicates the extent of the region that can of the plan, including appropriate governance readily access Bendigo Airport as against any requirements, are also addressed in this document. other airport with a relative level of capacity. The 1.2 Structure of the Strategic Plan region embraces the regional centres of Bendigo, Shepparton, Echuca and Swan Hill together with The following Plan has been developed in close a range of smaller centres such as Castlemaine, consultation with Bendigo Airport Advisory Committee and key City of Greater Bendigo staff, Deniliquin, Maryborough, Kyabram and Kerang. including the Airport Manager. The Plan provides The catchment area for Bendigo Airport embraces an overview of Bendigo Airport, including a draft an area of over 25,000 square kilometres, one vision for its long term redevelopment. Following a of Australia’s most productive agricultural and short summary of Bendigo Airport Precincts and key horticultural regions with an estimated population drivers of change, the Plan outlines four key strategic of over 300,000 people. directions and associated actions. A summary of the actions arising from the development of the plan is Establishing and expanding Bendigo Airport also provided, which details key actions, dates, and a as a key transport hub is a priority for the process for monitoring and review. region and strongly supports its aspiration for Greater Bendigo to be the world’s most liveable community.

Cities the size of Bendigo require sophisticated Swan Hill transport methods and there is a long-held local ambition for Bendigo Airport to support the movement of residents and visitors, and the Denilliquin freight of goods and services both nationally and

internationally. Kerang

Strong growth in Bendigo’s diverse economic base, including health care, financial and insurance services, and professional services

continue to drive job creation, population Echuca expansion and established business activity.

These factors underpin the importance of Kyabram Shepparton continued investment in Bendigo Airport. As Wedderburn Bendigo Airport expands its own services and Bendigo as a destination, there is a mandate to St Arnaud ensure it is financially sustainable and profitable.

Bendigo This Strategic Plan (the Plan) sets out a clear vision, objectives and priority actions to drive this transformation of Bendigo Airport. Maryborough Castlemaine

Kyneton CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 5

2. The Bendigo Airport

2.1 Vision 2.1.2 Objective The Plan’s objectives for Bendigo Airport include: To link passengers and freight within the Loddon Campaspe region to national and international • Becoming a transformative community asset, destinations. acknowledged as a pivotal community resource that supports a diverse and robust economy underpinned by prosperous and connected communities 2.1.1 Economic statement • Ensuring delivery of the highest levels of safety To establish and maintain an economically and security in regard to airport operations viable airport that attracts commercial transport operators; encourages job growth across the • Creating value (financial and in-kind) that is airport and surrounding commercial precincts; aligned with the regional economy through a and supports business prosperity in the region by range of credible, profitable and viable economic activities supporting a range of passenger, freight connecting Bendigo nationally and internationally. and general aviation services Economic viability will be achieved by creating • Extending essential community services for sustainable revenue and recognisable economic emergency and natural disaster responses value within the Bendigo Airport itself and • Engaging proactively with the community to Bendigo Airport precinct sites across airline ensure Bendigo becomes a thriving transport hub operations and a range of passenger, freight, that is valued by the community general aviation, and allied retail and commercial opportunities. • Being the preferred travel method for interstate and international visitors travelling to and from Bendigo and the Loddon Campaspe region • Being a major generator of employment and other economic benefits for Bendigo and the Loddon Campaspe region through providing quality transport facilities and services including freight • Ensuring we continue to enhance the range of facilities, products and services offered to meet Figure 1 Bendigo Airport – Proposed Flight Path Map customer expectations

Swan Hill The vision and objectives will be achieved through a range of actions aligned to the following Denilliquin strategic directions:

• Strategic Direction 1 Kerang Connected and active regional transport hub • Strategic Direction 2 Transformative operations and project delivery • Strategic Direction 3 Echuca Ongoing financial viability • Strategic Direction 4 Kyabram Governance for the future Shepparton Wedderburn BENDIGO

St Arnaud Primary Destinations Bendigo Secondary Destinations

Maryborough Castlemaine

Kyneton 6 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

2.2 Current context Bendigo is located to the north of the Great Dividing Range and enjoys a warm mediterranean Bendigo Airport is located four kilometres climate, averaging 240 rain-free days per year. north-east of the Bendigo CBD (Figure 2). The The area avoids extreme weather conditions such land around Bendigo Airport is relatively flat as strong wind and snow and has an average and adjoined by areas of low density residential temperature in January of 29 degrees and 12 development, industrial activity and the Wellsford degrees in July. The pleasant weather conditions Forest. make Bendigo a reliable location for aircraft Bendigo Airport is a registered airport and activities including Regular Passenger Transport home to Bendigo Flying Club, HEMS 3 Air (RPT) operations, flight training and emergency Ambulance helicopter service and DELWP services. temporary emergency service during fire season, The Bendigo Airport Master Plan (2007) and the as well as commercial operations including jet Bendigo Airport Strategic Plan (2009) have driven charter services and a flying school. Previous key actions including: development, completed in 2014, included the creation of 25 hangar sites, three taxiways and • Purchase of three neighbouring properties to upgrades to road access and drainage. accommodate the development of a new high capacity north-south runway With the development of the new 1,600m runway • Adopting new property lease arrangements for underway, opportunity exists to allow 70-seat Bendigo Airport to improve business, investment aircraft to fly in and out of Bendigo and encourage certainty and revenue generation further economic development to the region. The third stage in developing the Bendigo Airport will • Attracting a number of new tenants including the include the addition of a business park, expected new charter company My Jet, which has invested more than $1.5M at Bendigo Airport to include airside commercial (five lots), airport compatible business (16 lots) and private hangars • Construction of 25 new hangar sites in Precinct 1 – (68 lots). General aviation • Appointing a dedicated Airport Manager for the first time in the life of Bendigo Airport

Figure 2 Bendigo Airport city context CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 7

• Improving the main road entrance, erecting new 2.3 Drivers of change fencing, and installing new apron line markings and signage in accordance with Civil Aviation A renewed Strategic Plan for Bendigo Airport is Safety Authority (CASA) requirements required to ensure the appropriate resources are in place to enable the next phase of project delivery, • Refurbishment of the former airport terminal operational management and investment attraction. building – currently vacant and ready for first stage of Regular Passenger Transport (RPT) Engagement with the Bendigo business operation community has been conducted and RPT • Reviewing and amending the planning scheme demand has highlighted the importance of and associated strategic direction to ensure routes for business purposes and from Bendigo capital works and future services are supported to key interstate connections in South Australia, by land use planning New South Wales and Queensland (See Figure • Completing detailed (tender ready) engineering 1: Proposed Flight Path Map). According to design and preliminary costing on the proposed Infrastructure Victoria, freight volumes across business park Victoria are expected to increase over the coming decades, though consideration must be made into • Attracting co-funding support from all three levels of government for the stage 2, $15M runway whether air freight will have the same demand realignment and associated capital works and as freight conducted via rail and road throughout works completed the region. Detailed local assessment of freight in Bendigo is underway and should inform strategies to integrate Bendigo Airport with the movement 2.2.1 The Bendigo Airport Precincts of goods to and from the region. The Plan seeks to consolidate the previous focus Significant economic development opportunities on construction activity and associated capital exist within the region and Bendigo Airport is work stages by consolidating them into precincts ready for the next level of investment. Ongoing within Bendigo Airport. engagement with residents in the wider Loddon Campaspe area will assist in increasing the Bendigo Airport is defined by the following four perceived and real value of Bendigo Airport precincts: to ensure the site meets the needs of the Precinct 1 - General aviation community now and into the future. a. General aviation Bendigo is 141kms from the closest major b. Aircraft hangars and maintenance airport, Melbourne Airport. Identified regular RPT c. Commercial and emergency services destinations include Sydney (841 km), Canberra (626 km), Adelaide (621 km) and Brisbane (1,604 km). Precinct 2 – Airside Bendigo’s central location in Victoria is an attractive a. Terminal Complex destination for freight carriers, emergency services b. Ancillary Support Services and State and Federal Government administration. c. Aircraft Parking d. Runway Infrastructure Key future priorities include: 1. Commercial management – Ensure the Precinct 3 - Business and public Bendigo Airport is a commercially-sensitive a. Business park organisation by understanding our customers, b. Commercial precinct our strengths and ensuring we seek to improve performance; while simultaneously seeking Precinct 4 – Future development (to be defined) increased local investment in both airside and a. Commercial precinct non-airside opportunities

Figure 3 provides a map of Bendigo Airport 2. Operations - Ensure the Bendigo Airport meets precincts. regulatory compliance standards as it transitions from a registered to a certified airport; and exceeds the expectation of customers. Consideration must be made to airport security, safety, noise and environmental monitoring, day/night activity and pest management 8 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Figure 3 Bendigo Airport Precincts CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 9

3. Project Management – Successfully commission the current Precinct 2: Airside capital works program and deliver the Precinct 3: Business and public redevelopment. Deliver an updated Masterplan regarding Precinct 4.

4. Governance – Ensure Bendigo Airport has an effective corporate governance structure that drives performance, meets legal and regulatory requirements and is in line with the renewed strategic direction.

Having completed works on upgrading ‘airside’ facilities to support a new Class 3C runway, attention must shift toward changing Bendigo Airport as a whole. Bendigo Airport remains a Tier 6 Airport and significant effort is required to shift its status to include RPT services (Figure 4).

Figure 4 National Aviation Infrastructure Network – Bendigo Airport aims to move to the left

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Tier 7

Capital city Non- Major Major Regional Regional Remote airports capital city regional regional airports airports community international airports RPT airports without without aerodromes gateway with direct without direct RPT (exist for airports interstate direct interstate services community services interstate services (general service services (with less aviation aviation: (with more than 20,000 operations medical, than 20,000 passengers) only) emergency passengers) flights)

E.g. E.g. E.g. E.g. E.g. E.g. E.g. Tullamarine Coolangatta Alice Mildura Wagga Ballarat Tibooburra Springs Wagga

Bendigo Airport does not currently generate with regulatory requirements and drive adequate income to match its operating investment activities. expenditure. Long term, Bendigo Airport has objectives to increase and diversify its revenue It is important Bendigo Airport continues to meet streams. This includes RPT route development, regulatory compliance standards as it transitions growth of general aviation activities, freight from a registered airport to a CASA-authorised services, car parking and commercial certified airport. The key differences between leases/land agreements. registered and certified airports include airport manual, a safety management system, airport To achieve this, increased engagement between technical inspection and a suite of integrated existing and new stakeholders of Bendigo Airport quality assurance reporting systems. will need to manage change, ensure compliance 10 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Personal profile 3. Strategic Directions

Brad Martin 3.1 Strategic Direction 1 Bendigo has been – Connected and active home to a Helicopter regional transport hub Emergency Medical Service since July Infrastructure investment at Bendigo Airport is 2001. Brad Martin is central to repositioning the asset to a transport hub one of seven MICA that links passengers and freight within the Loddon flight paramedics based at the Bendigo Campaspe region to national and international Airport. He has been an Air Ambulance destinations. Engagement through a co-ordinated paramedic for eight years and has been marketing and investment attraction strategy will attending critical incidents across northern be critical in achieving this objective. Victoria and southern New South Wales for A commercial transport operator is required to the past five years. anchor the RPT services from Bendigo Airport and ensure delivery of a sustainable and reliable Patients as far north as Finley, Jerilderie, service. Opportunities exist for Bendigo Airport Swan Hill and Mildura, and those to to act as an ‘alternative airport’ for aircrafts the west in Stawell, Horsham and the Grampians have all benefited from the experiencing landing constraints as a result of Bendigo Air Ambulance service and weather, emergency and risk management. its convenient location in the centre of Further consideration should be placed on Victoria. attracting additional tenants into Precinct 1 – General aviation, which includes general aviation, About half of Brad’s work involves aircraft hangars and maintenance. supporting road ambulance crews at Opportunities exist to explore Public Private traumatic cases, such as car, motorbike, Partnership investment opportunities, particularly farming and horse riding incidents. The for regular travellers or regular freight customers. other half focuses on transferring patients from regional hospitals so as they can There will be continued focus on investment access specific medical skills found in opportunities into Precinct 3 - Business park and Melbourne hospitals. Winch and water commercial precinct, cornerstone of the overall rescue operations are also part of the job, Bendigo Airport development. Economic analysis so it’s physically demanding too. indicates that a fully operational business park could support $178M in output and up to 439 The crew attends to about 40 incidents jobs. There is a strong requirement to maintain a a month, similar to a metropolitan Air focus on this aspect of the overall Bendigo Airport Ambulance workload. development through actions to secure funding, develop a business case and consider the best The role of an Air Ambulance officer is very commercial arrangement for ownership. Further challenging and clinically demanding, land, potentially for freight-related activity is requiring more expertise than a general available for investment within Precinct 4 of the ambulance officer. A stringent process is applied to selecting Air Ambulance Bendigo Airport. There is an opportunity to further officers. They must all start in a road crew investigate formal relationships between the before applying to commence a MICA freight services and commercial operators in and intensive care paramedic course. From around Wellsford Road, East Bendigo. there, there’s an opportunity to apply for Ensuring the terminal building is fit for purpose and the Air Ambulance. meets the needs of increased use of visitors to the region will be critical for future investment. As the Brad considers Bendigo Airport key point of interaction upon arrival and departure, redevelopment to be good for the the terminal building provides an opportunity community and welcomes the idea of to engage with business, government officials, private businesses making better use of it. tourists and flight crews, promoting the values of the Bendigo region and central Victoria. The building should be well maintained and functional with a high profile reception facility as well. CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 11

3.1.1 Strategic Direction 1 – Actions Table 5 provides an outline of the actions to support Strategic Direction 1.

Table 5 Strategic Actions to support a connected and active regional transport hub

Key performance Strategy Action Priority Timing measure

Precinct 1: Immediate Co-ordinated Prepare an investment prospectus and Prepare investment Precinct 2: investment program that outlines opportunities for High prospectus and 6 – 12 months attraction investment at Bendigo Airport program Precinct 3 & 4: 12 - 24 months Regular media, Continue to enhance the profile of news and reporting Bendigo Airport as a regional transport of Bendigo Airport hub for business, general aviation and Medium Ongoing progress emergency services strongly aligned to the liveability of the region Review Airport Enhance name regional Work with key business Engage with business community regional business engagement (through Business Excellence Bendigo, organisations and to build a Agri-Business Forum, Bendigo Health, Medium Ongoing networks, analyse foundation Bendigo and Adelaide Bank) to identify and understand for RPT business development opportunities community needs

Business survey Engage with community to develop a developed, quantitative assessment of potential High 2017 - 2019 delivered and future users results analysed

Undertake activities to attract and Commercial Attract secure RPT services for the transport operator commercial Bendigo Airport secured for Bendigo High 2017 - 2020 transport Investigate adequacy of terminal Airport by 2019 operator building to meet future RPT Improve terminal and requirements other shared areas

Strategic Direction 1 Direction Strategic Develop and Precinct 3 & 4 Ensure attraction strategy addresses implement ‘non-airside’ project feasibility and funding business case business case mechanisms that recognise the High 2017 - 2018 and investment developed intrinsic link to Bendigo Airport attraction operations and land use development Precinct 4 strategies Masterplan delivered Ensure recommendations Align local strategies for land use and from the City of airport investment with the findings Greater Bendigo Medium 2017 onwards Increase the of the City of Greater Bendigo Freight Freight Study are alignment Study programmed into between Airport business Bendigo planning Airport Annual reporting business by City of Work with the City of Greater Bendigo and regional Greater Bendigo to identify opportunities to strengthen freight activity and Bendigo freight-related business activity both Medium 2017 onwards Airport indicate through Bendigo Airport and within the strengthening proposed Precinct 3 business park. freight industry involvement 12 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Personal profile 3.2 Strategic Direction 2 – Transformative operations ROB JARVIS and project delivery Rob Jarvis The future of Bendigo Airport will result in comes from a increased complexity of operations. Adaptive family of aviation resourcing strategies will be required to support professionals. the increasing level of operational intensity across Rob’s father was a the Bendigo Airport. general aviation pilot Ensuring Bendigo Airport meets regulatory and regularly flew interstate to conduct compliance standards as it transitions from a business and his interest in flying flowed to registered to a certified airport with increased the next generation. One of Rob’s brothers CASA involvement is fundamental to manage was a commercial pilot and captain with two major international airlines flying ongoing operations and attract new investment. Fokker F28s, Boeing 747s and 777s, while the other is a senior aircraft engineer The Bendigo Airport Manager role is multi- managing maintenance at the East Sale dimensional and typically involves a range of Royal Australian Air Force base and runs skills including general administration, project his own flying school at Sale Airport. planning, management, commercial negotiation Rob also has an impressive résumé of and technical aviation management. There is flight experience. He has worked with a need to develop an integrated management Parks Victoria and Victorian emergency system and required performance outcomes. services for 39 years, mainly in flood A skills audit to support the Bendigo Airport and fire response, and participated in should remain an ongoing focus as the scale and numerous operational aviation roles at diversity of operations across both airside and major campaign fires in Victoria, New non-airside activities advance, including increased South Wales and South Australia. Rob freight, general aviation, RPT services and the has also supported three American fire development of the business park. agencies in Montana, Idaho and Oregon. During his time assisting emergency The development of the business park is currently services, Rob was an Air Operations limited by site constraints, particularly provision Manager, Air Attack Supervisor and Air of adequate infrastructure services. Actions Observer, and conducted fire aviation that de-risk Precinct 3 and ensure development training, some of which took place at can proceed as planned will be important for Bendigo Airport. On numerous occasions attracting future investment. Bendigo Airport has been used as an airbase to respond to major fire, flood and locust plague control. Rob said he is looking forward to the completion of the new Bendigo Airport runway, which will secure its future as an emergency services hub for central Victoria and the wider region. Rob was awarded an Australian Fire Services Medal in 2012 for his contribution to fire, aircraft operations and safety. Rob has also conducted many air tours out of Bendigo Airport, taking passengers over central and eastern Australia, and has worked as a flying instructor for Bendigo Aviation Services. He recently retired from professional flying but intends to continue taking to the skies for recreational purposes. CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 13

3.2.1 Strategic Direction 2 – Actions Table 6 provides an outline of the actions to support Strategic Direction 2.

Table 6 Strategic Actions to support transformative operations and project delivery

Key performance Strategy Action Priority Timing measure

Match human Review the roles and functions of Human resources capital existing Bendigo Airport to ensure strategy that resourcing there is a focus on current and future Immediate FY2017-18 supports business with project Bendigo Airport operations and planning has been delivery and grounds management requirements developed airport need Prepare a gap analysis that outlines Ensure the procedural policy, infrastructure reporting and Gap analysis and resourcing gaps between current High FY2017-18 compliance complete operations and future Bendigo Airport actions certification requirements strengthen the transition Update Bendigo Airport Manual to meet Updated Airport High FY2016-18 to CASA future certified airport requirements Manual completed certification Integrated and meet Develop Integrated Management Management legislative System and determine associated High FY2016-18 System developed requirements performance indicators and operational

Effectively Undertake asset management manage and Bendigo Airport planning to audit and review suitability maintain Medium FY2017 – 19 Asset Management and adequacy for future asset Bendigo Plan completed management budget finance Airport assets

Strategic Direction 2 Direction Strategic Recruit appropriately skilled technical resources to ensure timely Staff/contractor Immediate FY2016-17 commissioning and certification of recruited Class 3C runway

Development of business plan that Support supports the Stage 2 business case. actions • The business plan should establish to ensure the operational costs associated commissioning with Bendigo Airport precinct. and effective This includes cross charges and Airside Business management strategies to guide future resourcing, High FY2017 – 18 Plan completed of Precinct 2 alignment with market/investment strategies and financial forecasts • Recruitment strategies that address the operational and project management functions of the Bendigo Airport should be clearly outlined

Prioritise Pending the direction of the Precinct Project delivery the project 3 renewed business case, prepare and commercial delivery and a plan for the project delivery and Medium FY2018 – 19 management plan commercialisation commercial management of the prepared of Precinct 3 business park 14 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

3.3 Strategic Direction 3 raising. Renewing the business case to secure – Ongoing financial viability additional funding support to address current infrastructure shortfalls remains a priority. Bendigo Airport precinct must operate with a Investment in human and built capital is required sustainable economic focus and be financially to realise future commercial opportunities arising viable into the long term. Implementing the Stage from land development. 2 Bendigo Airport Redevelopment Business Case is at the core of Strategic Direction 3 Completing a cost analysis to determine to ensure that government investment and quantified pricing and accounting for Bendigo forecast operational expenditure is matched by Airport’s total costs is required to determine cost income growth with a focus on RPT and revenue centre budgeting, ongoing revenue forecast and generated through this new service. future profit and loss. Benefit to the community During the construction phase, there were limited must be clearly reflected, accounted and income growth opportunities, compared with appreciated in any regular review of Bendigo outgoing operational and capital expenditure. Airport. Bendigo Airport has a vision to provide While forecast shortfall in operational income is both passenger and freight service, as well as experienced across a number of regional airports, extending the established emergency services there is a strong desire to increase the diversity base. Ensuring operations are financially of revenue streams to drive a sustainable level of sustainable is at the centre of the long term vision financial viability. for Bendigo Airport. The need to identify the intrinsic and locally specific Increasing alignment between Bendigo Airport strengths of Bendigo Airport is central to increasing and the business community will be important revenue in both scale and diversity. Revenue from to strengthen freight-related business activity existing tenants provides an important annual through Bendigo Airport and within the proposed contribution to Bendigo Airport’s operations. Precinct 3 business park. Opportunities exist to further investigate and define a fees and charges structure to diversify and Commercial opportunities exist to capitalise on extend income through new revenue sources. The increased activity across Bendigo Airport because Stage 2 Business Case identified RPT and leasing of both business and passenger use. Ultimately, revenue streams as the primary opportunity for the focus on sustainable economic management revenue creation at Bendigo Airport (Figure 3). of Bendigo Airport that lessens the requirement for government support is a priority of this The completion of the Precinct 3 business park Strategic Plan. has been identified as critical for future revenue

Figure 3 $1,500 Bendigo Airport revenue forecast $1,200 post RPT establishment ($000’s)

$900

$600

$300

123456789101112131415

Source: SED Advisory (2014) Ready for Take Off: Bendigo Airport Redevelopment Business Case CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 15

Personal profile

ANGUS BAXTER

Angus Baxter is a first generation pilot. His love of flying started with a trial introductory flight at the age of 13. It’s the way most students first take flight and they get to have a go at flying the aircraft.

Angus was hooked and requested vouchers for lessons for Christmas and birthdays after that, and went about researching the types of job opportunities available in the aviation industry.

To become a qualified pilot takes about 200 hours of training and after he finished school it took Angus about two and a half years to achieve his commercial pilot licence and instructor rating.

He’s now a fully qualified commercial pilot, flying charter planes and leading flight training at Bendigo Aviation Services. The charter flights take him anywhere in Australia, most often regional Victoria and sometimes New South Wales or South Australia.

Angus is excited about the new runway and the impact it will have on providing new opportunities for Bendigo and the wider region.

For Angus, he believes the longer runway will be attractive to regional airlines and means the community can be more connected to cities and towns outside of Bendigo. He’s also excited about the job opportunities it will create for local current and aspiring pilots. 16 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

3.3.1 Strategic Direction 3 – Actions Table 7 provides an outline of the actions to support Strategic Direction 3.

Table 7 Strategic actions to support Bendigo Airport’s ongoing financial viability

Key performance Strategy Action Priority Timing measure

Prepare annual report of Bendigo Fully account Airport operations that outlines for precinct Annual reporting detailed management and operations High Annually income and complete financial accounts including costs community and economic value

Quantify Fees and Charges Develop and implement a Fees and appropriate and associated Charges and associated Conditions of pricing for Medium 2017 Conditions of Use Use Policy, with a focus on applying use of airport Policy completed the appropriate fees and charges precinct and endorsed Complete cost analysis to forecast total costs, income, Develop and implement a budget Profit and loss Medium 2017 ongoing forecast forecast complete revenue and future profit and loss

Strategic Direction 3 Direction Strategic Undertake a co-ordinated approach across Bendigo Airport to identify income streams, for example: Increase • Precinct 1 – Fees, charges, Fees and Charges income leaseholds, user agreements and associated diversity Medium 2017 Conditions of Use to match • Precinct 2 – RPT services, ancillary Policy completed business and retail/passenger services, terminal and endorsed passenger use leases, passenger fees, commercial anchor • Precinct 3 & 4 – Land development sale or lease agreements

3.4 Strategic Direction 4 – forecast for the Bendigo Airport, specifically Governance for the future associated with RPT service delivery, Stage 3 Land Development and ultimately the most appropriate Good governance is imperative in operating a ownership/management structure to benefit financially sustainable, flexible organisation that is Bendigo Airport long term. in line with the needs of the community now and for the years to come. Consideration to be made to establish a Board of Management that could include experienced The current operational structure for Bendigo airport operator/s, technically competent Airport resides with the City of Greater Bendigo, person/s, business representatives, airport users supported by Bendigo Airport Advisory Committee and commercial development specialists to (BAACC). This paring co-ordinates alignment ensure that Bendigo Airport is supported in its between the council’s economic vision for the immediate and ongoing need for commercial Bendigo Airport and specialist community, aviation and technical development. and airport advice. It has been recognised that there is a need Existing governance arrangements have been for specialist skills, specifically to support the effective in planning and attracting significant transition of Bendigo Airport to reach RPT investment for the redevelopment of the Bendigo capacity; and drive the commercialisation Airport (Stage 2). However pressure points are of the Bendigo Airport (Figure 8). CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 17

Going forward, it will be important to establish a Figure 8 Recognised skill gap to drive RPT capability core set of operating principles for the Bendigo and commercialisation at Bendigo Airport Airport that define: • The role and function of the Current Stage Board of Management City of Greater Bendigo Advisory Committee • An agreed community value for the Bendigo Airport as a strategic local asset; and • The commercial relationship between revenue generated through development of Precinct 3 & 4 – Business and public and the viable operations of RPT capacity Precinct 2 – Airside Recognised skill gap to support the transition of Bendigo Airport to reach RPT capacity

Commercial operation Recognised skill gap to drive the commercialisation of Bendigo Airport to ensure it is financially sustainable

3.4.1 Strategic Direction 4 – Actions Table 9 provides the outline of the action to support Strategic Direction 4.

Table 9 Strategic Actions to support governance to match changing demands

Key performance Strategy Action Priority Timing measure

Undertake a Strategic Governance Review of Bendigo Airport, the review should include: Ensure governance • Role and terms of Bendigo Airport and Advisory Committee or new operational governance model Strategic capability • Establish agreed ongoing FY2017 – Governance Review match High community obligation for 2019 complete and Bendigo operational requirements, endorsed Airport’s reporting mechanisms and changing ownership structures technical Strategic Direction 4 Direction Strategic • Need to ensure Board level skills requirements match project implementation and changing operational environment of Bendigo Airport 18 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Personal profile 4. Implementation of the Plan Grahame and Marilynne Bateman 4.1 Implementation, monitoring Grahame Bateman is a self-confessed and review aviation tragic. He’s had a career in aviation all his life, getting his start as an Airforce The implementation and governance of Bendigo cadet before working as an air traffic Airport is a central component of this Plan. controller at airports across Australia. He’s also held commercial and private hot air Currently the ownership, implementation and balloon pilot licences. monitoring of progress is the responsibility of the City of Greater Bendigo and is led by Bendigo The opportunity to build his own hangar at Airport Manager. The Bendigo Airport Strategic Bendigo Airport saw the Kyneton resident Plan will form part of service unit planning and relocate his two planes to Bendigo. reporting and will be integrated into City of Greater Bendigo annual reporting. When Grahame and his wife, Marilynne, prepare for take-off, they’re either in a 4.1.1 Summary of Strategic Plan actions Beechcraft Debonair or a 1944 World War II Table 10 provides a summary of the actions Auster Mk V, which was at Dunkirk, France required to complete the implementation the day after D-Day and stayed in Europe of the Bendigo Airport Strategic Plan. for the whole war. It was flown by the British artillery as an observation platform.

Like most pilots, Grahame is often looking for any excuse to fly and he and Marilynne regularly head to Temora and occasionally to Brisbane. Grahame also enjoys fly-ins with the Antique Aircraft Association and does the air show circuit where he manages radio communications at these events. He’s recently taken on a management position at the Avalon Air Show.

Grahame is excited by Bendigo Airport redevelopment and hopes it will attract an RPT service, which in turn will bring more people to Bendigo. CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 19

Table 10 Summary of Strategic Plan actions

Key performance Strategy Action Priority Timing measure

Precinct 1: Immediate Co-ordinated Prepare an investment prospectus and Prepare investment Precinct 2: investment program that outlines opportunities for High prospectus & 6 – 12 months attraction investment at Bendigo Airport program Precinct 3 & 4: 12 – 24 months

Continue to enhance the profile of Regular media, Bendigo Airport as a regional transport news and reporting hub for business, general aviation and Medium Ongoing of Bendigo Airport emergency services strongly aligned progress to the liveability of the region Enhance regional Work with key Engage with business community business regional business (through Business Excellence Bendigo, engagement organisations and Agri-Business Forum, Bendigo Health, Medium Ongoing to build a networks, analyse Bendigo and Adelaide Bank) to identify foundation and understand business development opportunities for RPT community needs Business survey Engage with community to develop a developed, quantitative assessment of potential High 2017 - 2019 delivered and future users results analysed

Commercial Undertake activities to attract and transport operator Attract secure RPT services for Bendigo secured for commercial Airport Bendigo Airport

Strategic Direction 1 Direction Strategic High 2017 - 2020 transport Investigate adequacy of the by 2019 operator terminal building to meet future Improve terminal RPT requirements and other shared areas

Develop and Precinct 3 and Ensure attraction strategy addresses implement Precinct 4 ‘non- project feasibility and funding business case airside’ business mechanisms that recognise the High 2017 - 2018 and investment case developed intrinsic link to Bendigo Airport attraction operations and land use development Precinct 4 strategies Masterplan delivered Ensure Increase the recommendations alignment Align local strategies for land use and from the City of between the airport investment with the findings Greater Bendigo Bendigo Airport Medium 2017 onwards of the City of Greater Bendigo Freight Freight Study are business and Study programmed into regional freight Airport business activity planning 20 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Key performance Strategy Action Priority Timing measure

Match human Review the roles and functions of Human resources capital existing Bendigo Airport to ensure strategy that resourcing with there is a focus on current and future Immediate FY2017-18 supports business project delivery airport operations and grounds planning has been and airport need management requirements developed Prepare a gap analysis that outlines Ensure the procedural, infrastructure and Gap analysis reporting and resourcing gaps between current High FY2017-18 complete compliance operations and future Bendigo Airport actions certification requirements strengthen Updated Bendigo the transition Update Bendigo Airport Manual to meet High FY2016-18 Airport Manual to CASA future certified airport requirements completed certification and meet Integrated Develop Integrated Management legislative Management System and determine associated High FY2016-18 requirements System developed performance indicators and operational

Manage engagement Ongoing annual Continue a process of engagement with existing reporting by and communication with existing Medium Ongoing general aviation Bendigo Airport aircraft owners and operators owners and Manager operators Recruit appropriately skilled technical resources to ensure timely Staff/contractor Immediate FY2016-17 commissioning and certification of recruited

Strategic Direction 2 Direction Strategic Class 3C runway

Development of business plan that Support supports the Stage 2 business case. actions • The business plan should establish to ensure the operational costs associated commissioning with the Bendigo Airport precinct. and effective This includes cross charges and Airside Business management strategies to guide future resourcing, High FY2017 – 18 Plan completed of Precinct 2 alignment with market/investment strategies and financial forecasts • Recruitment strategies that address the operational and project management functions of the Bendigo Airport should be clearly outlined

Personal profile

Grant Welling

Grant Welling loves nothing more than chasing clouds. For him, flying is his hobby in the same way some people play tennis or scuba dive. The Qantas pilot flies A380s and Boeing 747s a few times a month to London and Los Angeles, but Grant is always looking for an excuse to jump in his own light aircraft and take to the skies for a joy flight.

Grant could fly before he could drive. His family moved to Bendigo when he was 10 and it was his father that instilled in him a love of flying.

Grant got his pilot licence through Bendigo Aviation Services and began working for the company as a flying instructor. He then moved onto flying for smaller carriers in places like Papua New Guinea before making the switch to long haul flying.

He considers Bendigo Airport the People’s Airport with a great social atmosphere that acts as an important source of recreation for the local flying community.

Grant gives back to the local flying community by serving as a member of the Bendigo Flying Club Committee and the Greater Bendigo City Council’s Airport Advisory Committee.

Grant sees the Airport as a necessary piece of infrastructure, similar to the Calder Highway or the Bendigo Railway station.

For Grant, the Airport redevelopment will allow it to welcome larger aircraft and help people to see Bendigo as a serious alternative to Melbourne when it comes to landing aircraft and overall liveability, as well as open up the airport to more recreational pilots and possible RPT routes. 22 CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN

Key performance Strategy Action Priority Timing measure

Fully account Prepare annual report of Bendigo for precinct Airport operations that outlines Annual reporting High Annually income and detailed management and operations complete costs financial accounts

Quantify Fees and Charges Develop and implement a Fees and appropriate and associated Charges and associated Conditions of pricing for use Medium 2017 Conditions of Use Use Policy with a focus on applying the of Bendigo Policy completed appropriate fees and charges Airport precinct and endorsed Complete cost analysis to forecast total costs, income, Develop and implement a budget Profit and loss Medium 2017 ongoing forecast forecast complete revenue and future profit and loss

Undertake a co-ordinated approach across the Bendigo Airport to identify income streams, for example:

Strategic Direction 3 Direction Strategic Increase • Precinct 1 – Fees, charges, Fees and Charges income leaseholds, user agreements and associated diversity Medium 2017 Conditions of Use to match • Precinct 2 – RPT services, ancillary Policy completed business and retail/passenger services, terminal and endorsed passenger use leases, passenger fees, commercial anchor • Precinct 3 & 4 – Land development sale or lease agreements

Undertake a Strategic Governance Review of Bendigo Airport. Ensure The review should include: governance • Role and terms of Bendigo Airport and Advisory Committee operational Strategic capability • Establish agreed ongoing FY2017 – Governance Review match community obligation for High 2019 complete and Bendigo operational requirements, endorsed Airport’s reporting mechanisms and changing ownership structures technical • Need to ensure Board level skills Strategic Direction 4 Direction Strategic requirements match project implementation and changing operational environment of Bendigo Airport CITY OF GREATER BENDIGO: BENDIGO AIRPORT STRATEGIC PLAN 23

Personal profile

Chris Gobel

Chris Gobel remembers a time when a group of 27 lawyers wanted to charter a plane from Bendigo to Adelaide but they couldn’t be helped because the runway wouldn’t cope with large aircraft.

The group were surprised, like the many number of people who call wanting to book a plane ticket to or from Bendigo only to find out they can’t.

The development of the new runway and the goal to attract RPT to the Bendigo Airport means that problem will soon be a thing of the past.

Chris can’t believe the new runway will be built in his time working at the airport. He’s been there for more than 25 years running Bendigo Aviation Services, a flying school and charter company. Chris sold the business 18 months ago but remains its chief pilot and flying instructor.

The former Qantas pilot was with the aviation company throughout its name changes. Chris remembers a staff meeting where the pilots were pushing for discount airfares so there would be more passengers and the need for bigger aircraft. The General Manager said that strategy wouldn’t work. Times certainly have changed.

Chris has been flying since 1957. A school excursion to Amsterdam airport sparked his interest. He no longer pilots charter flights and instead focuses on flight testing. He helps people obtain or renew their licences and having been in the aviation industry for so long, people come from near and far to Bendigo to be taught by Chris. Although at 76, Chris thinks it’s time to hand the airways over to the next generation. PMS 1807 RED PMS 432 GREY PMS 142 GOLD