REGAIR Sub 119 Rec'd 27/09/2017

KALGOORLIE-BOULDER

City of Kalgoorlie-Boulder presentation to Economics and Industry Standing Committee Inquiry into Regional Airfares in 31 August 2017 at Kalgoorlie Contents

Introduction ...... 3 Overview of Kalgoorlie-Boulder and its Economy ...... 4 Performance of Kalgoorlie-Boulder ...... 6 Key Issues Affecting Kalgoorlie-Boulder ...... 7 Major Effects of High Airfares in Kalgoorlie-Boulder ...... 8 Local Government Airport Charges ...... 9 Government Support ...... 1 O Possible Solutions ...... 11 Conclusion ...... 12 Attachments ...... 13 1.Airport Capital Expenditure 2017 - 2027 ...... 14 2. Report to Council Regarding Landing Charges 28/08/2017 "Airfares and Airport Fares" ...... 15 3. Estimates of Local Government Charges as a Percentage of Airfares ...... 20 4. Summary of Recent Airfares Kalgoorlie - Perth and Perth - Kalgoorlie ...... 21

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31August2017 2 of22 KAT--GOORUE·llOULDER

Introduction

The City of Kalgoorlie-Boulder is delighted to be able to present to the parliamentary inquiry and outline its concerns relating to regional airfares.

Our views were broadly outlined in the combined submission from the Western Australian Regional Capitals Alliance that has already been lodged with the inquiry.

Today's submission will focus on issues relating to Kalgoorlie-Boulder and highlight the detrimental affect that the often exorbitant and always high airfares have on the City broadly and particularly its residents who undoubtedly carry the brunt of the problem.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 3 of 22 Overview of Kalgoorlie-Boulder and its Economy

The City of Kalgoorlie-Boulder was formed in 1989 after it was decided that the two separate Shires were to amalgamate. It is located in the heart of the Goldfields­ Esperance Region of Western Australia (WA), approximately 600kms east of Perth.

The City of Kalgoorlie-Boulder is WA's largest inland city and Australia's largest outback city responsible for an area of 95,575km2. The town site of Kalgoorlie-Boulder is 70 km 2 which is made up of residential, industrial and commercial businesses.

The City includes the suburbs of Kalgoorlie, Boulder, Hannans, Karlkurla, Lamington, Piccadilly, Williamstown, South Kalgoorlie, Somerville, West Kalgoorlie, Victory Heights, Broadwood and South Boulder.

The remaining land is utilised for primarily Mining and Agricultural purposes. The mining sector is the largest industry in Kalgoorlie-Boulder and is pivotal to the financial sustainability of Kalgoorlie-Boulder. Our lands are rich in ~inerals.

As per the 2016 Census, Kalgoorlie-Boulder had a population of 32,638. The population is a young demographic with an influx of young adults into the mining industry. The median population age is 31 years.

The City is a family friendly City. As per the 2011 Census, 69% of residents identified that they were living in a family unit. Of the families in Kalgoorlie-Boulder, 27.5% had two persons in the family unit, 20.75% had three persons, 27.2% had four persons .and 24.6% advised there was five persons or more in their family unit.

The City of Kalgoorlie-Boulder has a culturally diverse population with residents originating from across the country and from overseas attracted to the lustre of the Gold and Commodities Industries. Kalgoorlie-Boulder is considered to be culturally diverse with 34% of the population identified as being born overseas and 6.9% of the population identifying themselves as Aboriginal or Torres Strait heritage (ABS 2011 ).

Kalgoorlie-Boulder is a major contributor to the WA economy with a Gross Regional Product (GRP) estimated at $7.9 billion in 2015-2016, representing 3.2% of WA's Gross State Product (GSP) of $248.6 billion.

Kalgoorlie-Boulder is rich in two of Australia's most dominant resource commodities, gold and nickel. Over recent years, there has also been a significant exploration program and investment into mining another commodity, lithium. Increases in global demands for lithium can be explained by an increase in global production of Lithium ion batteries used in devices such as smart phones, laptops, cars and power systems.

Mining accounts for approximately 57% of the total output within the Kalgoorlie­ Boulder's economy with around 27% of the workforce employed in the industry. Other commodities of interest and economic value also include uranium and iron ore.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 4 of22 KALGOORUE·BOULDER

Kalgoorlie-Boulder has built on its strengths in the mining sector enabling the emergence of a number of other significant industries.

The manufacturing services industry is a key supplier to the mining industry and has become the second largest sector in terms of economic output.

Education is also a substantial sector in Kalgoorlie-Boulder including Curtin University's Western Australian School of Mines (WASM) and a TAFE campus. This sector is a key contributor to the economy and the community.

Other industries which have also become important contributors to Kalgoorlie-Boulder include tourism, creative industries and population based services such as retail, professional, health and social support services, all of which provide significant economic and social contributions.

The City of Kalgoorlie-Boulder strives to address both economic and societal factors that drive socioeconomic development. It cannot drive major initiatives on its own and has created a sphere of influence through effective advocacy, governance, networking and partnerships to ensure there are sustainable and positives outcomes for our City and its community for many generations to come.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 5of22 Performance of Kalgoorlie-Boulder Airport

Unlike some other Western Australian regional , Kalgoorlie-Boulder has reasonable passenger numbers, is efficient, employs relatively low staff numbers, is fully compliant with all regulations and is profitable.

In 2016/17 the airport returned a net operating profit of $1.88m after a return on investment was paid to the City, full depreciation provided and corporate overheads allocated. After capital expenditure of $834k, the total surplus was around $1 m.

It should also be noted however, that $1.278m of revenue at the airport is derived from ancillary services rather than airline charges including advertising, vehicle rental leases, car parking (newly introduced) licence fees and grants.

Over the next 10 years capital expenditure of $13.4m is planned to ensure the airport is maintained to an acceptable level (see attachment 1 ).

Whilst all costs are met by the City of Kalgoorlie-Boulder and it carries all risk, the airport services an area broader' than Kalgoorlie-Boulder as it is a regional hub used by surrounding local government areas and towns, mining companies and support services including substantial government use.

It is essential that the airport remain viable and profitable in the long term in the interests of our rate payers who carry the risk in economic:Jl{~llli~C--- ~ Given the airport at Kalgoorlie-Boulder receives ar nd 250,000 passengers er year and is able to be run successfully, it is staggering t the airline also make adequate returns off this route without charging the fares they do. Understanding the profitability of this route would be useful.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 6of22 Key Issues Affecting Kalgoorlie-Boulder

There is only (1) key issue that needs addressing today and that is the high and/or exorbitant airfares that are charged to those people not travelling on corporate or negotiated airfares or travelling on a ticket that has no onward connections and who cannot book substantially in advance on flexible days.

In short, these are the people who live and work in the region or who have a need to visit Kalgoorlie-Boulder for family or business reasons.

Travelling by air to and from remote locations for family, health, business or soci ~ reasons is extremely expensive. Yield management practices of airlines mean thW after factoring in contract and through fares and advanced purchase fares, those people that need to travel are paying the highest prices and in Kalgoorlie return fares of between $800-$1200 per person are common. Such fares are difficult for individuals and impossible for families. (See attachment 4).

Unravelling the airlines policies and practices, yield management systems, pricing policies, loads and scheduling is impossible for anyone but the airlines themselves or regulators and governments.

This means the airlines will always be better informed and able to justify what, for all reasonable people, seems price gauging.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 7of22 Major Effects of High Airfares in Kalgoorlie-Boulder

1. Economic

2. Social Liveability

3. Tourism

4. Access to Health and Ancillary Service

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 8of22 KALGOORLJE·OOULDER

Local Government Airport Charges

Much has been made by the airlines on the issue of excessive local government charges at WA regional airports. It is our view that their arguments are groundless.

Appendices 2 and 3 show details of comparative data between airports as well as an estimate of the percentage of an average fare that local government charges in each airport make up.

There is a caveat on the accuracy of information presented however, in that we as a city are not privy to all the necessary information airlines have as it is not publicly available.

In Kalgoorlie's case the passE?1ger airport charge and licence · $25.95 for each arriving and departing pass~ger (excluding security charge . his equates to approximately 6% of the averagerfafe emg-=e -a - . . available fares.

Given the Councils operating and capital requirements this level of charges is necessary. In any event any reductions made to these charges would have little or no noticeable effect on fares and airlines would be unlikely to pass on the savings in any event.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 9of22 Government Support ® The City generally supports an open skies policy and deregulated routes. It is our philosophic view that doing business this way is generally a better way of doing things, however, the City's faith is tested when the airlines operate as they do.

In the absence of action by the airlines to change and curtail the excessive pricing policies they practice, the city would join the many calls that exist to place some regulation into the market place on routes and pricing.

(();} The city believes that government also has a role to play in keeping airlines to account ~ by monitoring pricing, loads, routes and the interplay between the parties. This information gathering and the accountability that goes with it will help keep pressure on in future years in our view.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 10 of 22 KALGOORLIE-BOULDER

Possible Solutions

1. Cap the extreme fares that result from yield management pricing strategies that affect mostly local who have little lead time for their bookings.

2. Provide retail airfares that are in line with negotiated corporate fares.

3. Quarantine a set number of low cost seats for local residents.

4. Airlines and the local authority negotiate resident's fares on commercial terms.

5. Government financially supports airport infrastructure grants as they do with other transport options such as roads and rail.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31August2017 11 of 22 KALGOORLIE-BOULDER

Conclusion

Whilst there are many issues that need to be considered, the reality of airfares in regional WA is they exceed any comparisons on any measure with all other states and international when offered to the general public.

This affects the quality of life of residents who live remotely, their access to basic services and their ability to enjoy every day opportunities available to others and importantly the ability of their friends and relatives to visit.

It affects small business people travelling to Perth and those travelling to Kalgoorlie and the region as they are unable to negotiate corporate fares and are least able to afford the fares offered.

High airfares affect greatly the city's ability to develop a tourism industry (other than the drive market) as we cannot compete on any level.

There is only one issue in Kalgoorlie-Boulder regarding this matter, "airfares are always high and often exorbitant and therefore unfair."

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 12 of 22 Attachments

1. Airport Capital Expenditure 2017 - 2027

2. Report to Council Regarding Landing Charges 28/08/2017 "Airfares and Airport Fares"

3. Estimates of Local Government Charges as a percentage of airfares.

4. Summary of recent airfares Kalgoorlie - Perth and Perth - Kalgoorlie

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31August2017 13 of 22 KALGOORLIE·DOULDER 1.Airport Capital Expenditure 2017 - 2027

Y•.ar Proi•ct Sub Pro Ass.r:clillss Progr.am Constr B.as•.aimount R•n•v.111 fol•vS.. vic• Upgr...it Tot"I C"Pit"I ~h•c• G•n. R•s•rv.s R•s..-v•Nillm. Tot"I action P•rAMP ProgrJ11m R•v•nu• Funding IT--- 2017-18 CCTVLinnrao» Airoort lnfrutructurt- Akoort Tr.ansnnrt R..,...al $60,000 $80,000 $0 60,000 $80,000 60,000 2017-18 Llnhtboa F abllc.ltlon Airoort lnfr ostructuro • Alroort Tr¥\SIN'Vt R..,...al $10000 $10000 so 10,000 $10,000 10,000 2017-18 Lona tonn Parklna Baus 1401 Airoort lnfr.astructmt- AirDort Transoort N..., .. $300,000 $0 $300,000 300,000 $300,000 300,000 2017-18 Modllcatlons to Donarturo Gato Aimort lnfrostruct1... Alroctt Tr.-.snnrr _ $15000 $15,000 $0 15,000 $15,000 15000 2017-18 Purchaso of n1nnn L~ Airoort lnfr ostructuro - Air Dort Tr..,....,.. ~ .. $65000 $0 $65000 65000 $65,000 65000 2017-18 ~Kflntnt d THmin1I Airnort lnfrostructuro - Alroctt Tr.srvvt _.. $825000 ~~ooo so 825,000 $0 $825000 Aorodrorn. Rosoruo 825,000 2017-18 TomW!al and Froia~andlinYomont ArHrs Microsurfacina Airoort lnfr ostructuro - Air0ctt Tr-1nsoon _ $2600000 *2600000 so 2.600000 so SZ600000 Airoort Movtment tx R•olacemtnt Rts4 2.600000 Roplacflnont of Passongor 8c storio 2018-19 Hoidina I~~ S ..tina Airoort lnFr ostructurt - Air0ctt Tr..,..,,,.. -al $551!00 $55000 $( 55,000 $0 $55000 AtfodrOl'M RtSitl'Yt 55000 2018-19 RaN.-,...... ,nt of TMnin1I Kiosk Airoort lnfr .astructur• - Airoort Tr.ansnnn -al $55000 $55000 $C 55,000 $0 $55.000 AHodrome- RtseJYt 55,000 2018-19 UoarMe cMok·in oounttrs Airport lnfr ostructurt - Alr0ctt Trans0ctt R..,...al $100,000 $100,000 $0 100,000 $0 $100000 Atrodromf' Rf.serueo 100000 2018-19 Total 2.820000 2019-20 CCTV'""'rao» AirDort lnfr .utructureo - Air Dort TransntVt R..,...al $160,000 1160,000 $0 160,000 $0 $160,000 Aeorodromeo ReoseorYeo 160,000

2019-A' 1 V-bot FM>rtoation Airoort lnfr utructureo - Air Dort Tr.an_._... -al $10,000 $10000 $0 10,000 $10,000 10,000 2019-20 Mc>Yomont Ar ..rs MicrosurFacina Airoort lnfr ostructurt - AirDCYoment & Roolacomont Ros 550,000 2022-23 Ro-sHl lntornal road network Airoort lnfrostructuro - Alroort Tr.s,,._,. -al $2501!00 $250000 $0 250,000 $0 $250,000 u~n Mc>Yoment & Roolacorn.nt Ros 250,000 2022--23 Total 810.000 2023-2• It """boa Fabrlc.ltlon Airoort lnfrostructuro - Alroctt Tr..,..,,,.. -al $10000 $10000 $0 10000 $10,000 10,000 Roplacflnont Airport Boundary ringlock 2023-2 foncina Airport lnfr ostructurt - Alroort Transoort -al $550000 $550000 $0 550000 $0 $550000 AirPOrt "'""°'8'ement &: Reolacemtnt Res 550000 Rtplacorntnt runw09/tniw., lights with 2023-2 LEDS Airoort lnfr ostructurt - Alroort Tr.ansDCXt -al $550,000 *5511000 $0 550,000 $0 $550,000 AirPOrt Movemtnt &: Reolactment Reos 550000 2023·24 Total 1.110.000 2024-Z!I t '""'boa Fabrlc.ltion Airoort lnfr ostructurt - Alr0ctt Tr.ansDOft -al $10,000 $10000 $0 10000 $10,000 10000 2024-2!1-~~nt of Arificial lawn u'-rt lnfr ostructurt - Alr0ctt Tr..,..,.,,, -al $75000 $75000 so 75000 $0 $75000 Airoort Mc>Ytmont & Roplactmont Ats 75000 2024·25 Total 85,010 2025-211 t """""" Fabrication AWnnrt lnfr ostructurt - Airoort Tr>nnvvt -al $10000 $10000 $0 10,000 $10,000 10000 2025-211 ~ t of fmtfOfllCI ,.__•t ,...,,,rt lnfrostructurt - Airoort Tr..,..,,,.. -al $60000 Kn000 $0 60,000 $0 Kn000 A.rOYomor>t Aroars McrosurfacinQ Airoort lnfrostructurt -Airport Tr.ansnon: R..,...al $3,500,000 $3,500,000 $0 3,500,000 $t500,000 $2,000,000 .11.irrv

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 14 of 22 KAT..GOORLIE·BOULDER 2. Report to Council Regarding Landing Charges 28/08/2017 " Airfares and Airport Fares"

14.1.2AIRFARES AND AIRPORT FEES

Responsibte Office:r: John Walker Chief Executive Officer Author; John Walker Chief Executive Officer Disclosure of Interest: Ni!I.

VOTING REQ.UIRE.MENTS Simple

OFFl:CERICOMMllTT,EE RECOMMENDATl:ON That Council 1. Note the comparative data provided on airport landing charges for Kalgoorlie-Boulder and other Regional WA airports.

2. Endorse the submission to the Parlllamentary Inquiry Into regional ailrfares prepared by the Western Australia Reglo.nal Capitals AIHance.

3. Note the responses to CouncU's request for meetings and discussions wtth both and Virgin and determine what further action, If a1ny, 1.t wishes to take.

4. Determine the key points It wishes to present to the Parl:lame,ntary Inquiry to be hel'd ln Kalgoorlie on the 31st August 2017 and how H wishes to deliver the prese.ntatlons.

EXECUTtVE SUMMARY At the Ordinary Council Meeting held on the 22 May 2017, Council adopted a Notice of Motion put forward by Cr Allan Pendal in relation to, airfares and airport charges. The actions requested in that Notice of Motion have been carried out .with mixed results.

The Parliamentary Inquiry into Regional Airfares has subsequently been called by the Premier and will hold meetings in Ka.lgoorlie on the 31st August 2017. A submission prepared by the Western Australiian Regional Capital Alliance on behalf of member councils has been submitted to the inquiry and the City has also advised the Inquiry it will make a presentation on the day.

This report outlines the comparative data on airport charges requested in the Notice of Motion which show Kalgoorlie's charges are in line with those at other airports.

COMMUNITY STRATEG'IC PLAN LINKS This re·port links to the Strategic Community Plan through the Community's Guiding Principles to be a City that is a dynamic, diverse and attractive place for tourists, whilst fostering. a growing population and ensuring equitable community services for all residents.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 15 of 22 AGENDA 28 AUGUST, 2017

BUDGET IMPLICATIONS Nil.

RE PO Rf At the Ordinary Council MeeUng held on the 22 May 2017 a Notice of Motion moved by Cr Pendal was adopted. The Notice of Motion was as follows -

That Council: 1. Request the Mayor and CEO to seek separate meetings with Mr. Alan Joyce CEO Qantas Ainvays Limited or Mr. Andrew David, CEO Qantas Domestic and Mr. John Bo1ghetti, CEO and Managing Director Vi1gin Aus.tralia or Ms. Merren McArthur, CEO Regional Airlines or their acceptable nomina,ted representatives with a view to seeking a full explanation as to why aitfares between Kalgoorlie and Perlh are; at times, extraordinarily high compared with many other competitive flights in Australia, including competitor airlines. At these meetings ask each airline representative what, if anything, the City can do to assist in offering more affordable aitfares to our ratepayers and residents. 2. Request the Mayor to write to WA Premier Mark McGowan fully supporting the Government's c6mmitment to a parliamentary inquiry into regional airfares and strongly requesting that such inq.uiry commence immediately. 3. Request the CEO to prepare a comparative report of airport landing charges for Kalgoorlie-Boulder, Port. Hedland, Karratha, Newman and Broome before 31fl/17 a'nd on completion publish the results in a media release and on the City'.s website and social media channels. 4. A reporl on all items to be brought back to Council at the earliest opportunity but no later than 31 July 2017.

Letters were forwarded to both Qantas and Virgin as requested. Qantas responded positively to the request to discuss the matter and three (3) tel1ephon,e meetings have taken place subsequently. These discussiorns have been positive in trying to find solutions to the issues raised by Council and continue. As yet there is no resolution.

Virgin has ignored Council's letter and a follow up, and has not even provided an acknowledgement.

The Mayor's letter to the Premier was sent The Premier has fulfilled his promise to hold a Parliamenta~ inquiry into Regional Airfares and the Inquiry will meet in Kalgoorlie on the 31 6 August 2017 as part of its deliberations. The City has prepared a 'fonnal submission in conjunction with other members of the Regional Capitals Alliance and will also present to the !Inquiry at its meeting on the 31 51 August. A copy of the Alliance submission is at1aohed. The comparative data requested has been pr;epared and is detailed below.

DETAILS The airports concerned are: • Albany Airport #

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 16 of 22 KA LGOORJ,JE·BOULDER

AG'EINDA 28 AUGUST, 2017

• Broome lntemational Airport • Sunbury Aiirport* • Busselton~Marga.ret Rive.r Airport • # • Airport • Karratha International Airport • Port Hedland International Airport and • Northam Airport*

Those ai11ports marked with an asteri1sk (*) are registered (rather than certified} and conduct no regular public transport (RPT) flights. They are not security restricted - meaning, among other things, that they do not conduct passenger screening.

Those airports marked with a hatch(#} are State regulated, security restricted and do conduct RPT flights but do not undertake passenger screening !because th.e REX aircraft serving those communities weigh less than the 20,000kg mandated limit for screening. Neither the Bunbury nor Northam airpo.rts ar:e included in this rev1lew and the fe.es and charges that are imposed by both the Albany and Esperance airports are ino1uded only in terms of noting their fee structures but are not otherwise assess·ed as they do not impose screening charges.

This information compares landing fees, passenger fees and screening charges for a 79.01 tonne 8737-800 with a seating capacity of 176, 75% loaded with 132 passengers on board on a return flight.

The assessment also assumes a landing by a 737-800 at the IBusselton-, which does not actually accommodate that aircraft.

(All charges shown exclude GST.)

ALBANY AIRPORT Larnding Fee ($24.09/1,000kg): $1,903.35 Passenger Fee ,($27.71 x2): $7,315.44 Passenger Screening Charge: n/a

TOTAL! $9.,218.79

ESPERANCE AIRPORT Larnding Fee ($33.t8/1000kg): $2.621.55 Passenger Fee {$22.72 x2): $5,998.08 Passenger Screening Charge: n/a

TOTAL! $8.,619 .63 BROOME AIRPORT Landing Fee ($23.65/1 ;000kg): $1,868.58 Passenger Fee {$20.37 x2): $5,377.68 Passenger Screening Charge ($13.24): $1,747.68

TOTAL: $8.993. .94

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 17 of 22 AGENDA 28 AUGUST, 2017

BusSELTON..MARGARET RIVER AIRPORT Landing Fee ($18.81/1,000kg): $1.486.17 Passenger Fee ($20.00 x2): $5,280.00 Passenger Screening Charge ($20.00): $2,640.00

TOTAL: $9,406.17

GERALDTON AIRPORT Landing Fee ($16.3611,000kg): $1 ,292.60 Passenger Fee {$20.45 x2): $5,398.80 Passenger Screen:ing Charge ($17.27): $2,279.64

TOTAL:. $8.,971 .04

KARRATHA INTERNATIONAL AIRPORT Landing Fee ($38.66/1 ,OOOkg): $3,054.52 Passenger F,ee ($1!2.09 x2): $3,191.76 Passenger Screening Charge ($12.61 ): $1 ,664.52

TOTAL~ $7.910. .80

PORT HEDLAND INTERNATIONAL AIRPORT Landing Fee ($22.2311 ,000kg): $1 ,756.39 Passenger Fee {$22.04 x2): $5,818.56 Passenger Screening Charge ($9.50): $1 ,254.00

TOTAL: $8.,828 ..95

NEWMAN AIRPORT Landing Fee ($21 .3211 ,OOOkg): $1,684.49 Passenger Fee ($22.68 x:2): $5,987.52 Passenger Screening Charge ($13.68): $1 ,805.76

TOTAL~ $9,477. .77

These figures compare, as follow, with the KAL1GOORUE .. BouLI>ER AIRPORT: Landing Fee ($11.73/1,000kg): $926.78 Passenger Fee ($23.45 x2): $6,190.80 Passenger Screening Charge ($9.05): $1, 194.60

TOTAL: $8.,312.18

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 18 of 22 • KALG O ORUE-IlOULDER AGIENDA 28 AUGUST, 2017

1> B7 ~7'-8 0 0 Turnaround Co st s -August 2017

Busselton· Kalgoorlht Port Broome M:arJil!'et Gera1dton Karratha Hedland Newman Boulder River Terminal Services $23 .45 $20.37 $20.00 S20.45 $12.09 $2.2..04 $22..68 ~-~ Y.Y·- · - · - · ·-·- · -·· ·-··-·-·-·-····-·-··-·-· ·-·-··-·-···-·-··-·-·· ·-·-·-·-·-·-·-·-·-··-·-· -·-·-·-·-··-·-·-·-·-·· -·-·-·--·-·-·-·-·· ·-··-·-·-·-·--·--·- -·-·-·-·-·-·-·-·-·

Landing I $11 ,7?. $23-.65 S G.36 $38..66 $2.2.23 $21.. 32 Fee

Screening 1 Ch I $9.05 $13.24 s.w.oo $17.27 $12:.61 SS.SO $13 .68 """ ~~~.~ ,,_, • ., " , ....,..,.,,., • .,.,,.,.,.,. , ,.,_,,., ,,._,.,, _,,.,,., ,.,..,,.,_.,.,.,,.,.,,.••• m ,,,.,,.,.,.. • .,.,,_,,.,,., ,.,..,_,_,,.,,.,.,,.,.,. ,..,.., . .,., • .,.,,.,..,.,,. ., •• ,..,.,,.,.,.,,., ,..,

B1J7~8 Tumaro11nd $8,312.18 $8,99S.94 $.,,406.17 $8,,71.04 $7,910.80 $8,828.9' $9,477.77 Cost

Whilst the Notice of Motion asked for the report to be brought back to Council, it was considered appropriate to list it for consideration at APC given the time of the Parliamentary Inquiry visit and to allow Council to input into the means and content of our presentation.

STATUTORY l,MPLICATIONS There are no statutory implications resulting from the recommendations of this report.

POUCY IMPLICATIONS There are no policy implications resulting from the recommendations of this report.

COMMUNITY ENGAGEMENT CONSULTATION No community consultation was considered necessary in relation to the recommendations of the report.

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 19 of 22 KA LGOORLIE·BOVT.DER 3. Estimates of Local Government Charges as a Percentage of Airfares

KALGOORLIE-BOULDER AIRPORT

Landing Fee: $1 ,019_22 Terminal Services Levy: $6,811 -20 Screening Charges: $1313-40

$9, 143_82 I $ 145,200 x 100 =6.29%

BROOME INTERNATIONAL AIRPORT

Landing Fee: $2,055_05 Terminal Services Levy: $5,913_60 Screening Charges: $1,921_92

$9,890_57 / $330,660 x 100 =2.99% (High Fare [$1 ,439; $1,066]) $9,890_57 / $228,492 x 100 =4.32% (Low Fare [$663; $1,066])

GERALDTON AIRPORT

Landing Fee: $1,421 _38 Terminal Services Levy: $5,937-36 Screening Charges: $2,506-68

$9,865-42 / $54,780 x 100 =18.00%

KARRATHA INTERNATIONAL AIRPORT

Landing Fee: $3,359_50 Terminal Services Levy: $3,508_56 Screening Charges: $1 ,830_84

PORT HEDLAND INTERNATIONALA'IRPORT

Landing Fee: $1 ,931_78 Terminal Services Levy: $6,399_36 Screening Charges: $1 ,379-40

$9,710.55 I $$233,904 x 100 =4.15% (High Fare [$1,060; $712]) $9,710.55 / $187,968 x 100 =5.16% (low Fare [$712; $712])

NEWMAN AIRPORT

Landing Fee: $1 ,852.78 Terminal Services Levy: $6,584.16 Screening Charges: $1 ,985.28

$10,422.22 / $235,752 x 100 = 4.42% (High Fare [$1,01 5; $771]) $10,422.22 I $184,800 x 100 =5.63% (Low Fare [$700; $700])

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31August2017 20 of 22 KALGOORLIE-BOULDER 4. Summary of Recent Airfares Kalgoorlie - Perth and Perth - Kalgoorlie

1/08/2017 3/08/2017 415 685 315 685 8/08/2017 349 415 280 685 2/05/'2017 4/08/2017 349 685 280 415 9/08/2017 685 685 189 349 3/08/2017 5/08/2017 245 415 280 499 10/08/2017 685 685 189 349 4/08/201 6/08/2017 189 280 499 685 11/08/2017 369 499 245 280 5/08/2017 7/08/2017 245 315 415 685 12/08/2017 280 280 245 349 6/08/2017 8/08/'2!017 315 685 315 685 13/08/2017 315 315 280 499 7/08/2017 9/08/2017 685 685 189 622 14/08/2017 280 .415 349 685 8/08/2017 10/08/2017 685 685 189 349 15/08/2017 280 369 280 315 9/08/2017 11/08/2017 369 685 280 315 16/08/2017 349 499 349 499 10/08/2017 12/08/2017 280 315 245 349 17/08/2017 349 685 315 499 11/08/2017 13/08/2017 349 349 369 685 18/08/2017 315 499 245 280 12/08/2017 14/08/2017 280 315 778 778 19/08/2017 280 280 245 349 13/08/2017 15/08/2017 315 499 315 685 20/08/2017 315 315 280 499 14/08/2017 16/08/ 2017 369 685 349 685 21/08/2017 245 280 349 499 15/08/2017 17/08/2017 449 68.5 315 685 22/08/2017 280 369 280 685 16/08/2017 18/08/2017 449 685 280 315 23/08/2017 349 499 349 499 17/08/2017 19/08/2017 449 449 245 349 24/08/2017 415 685 315 449 18/08/2017 20/08/2017 349 349 315 622 25/08/2017 315 499 245 280 19/ 08/ 2017 21/08/2017 280 315 369 685 26/08/2017 280 280 245 349 20/08/2017 22/08/2017 315 415 315 685 27/08/2017 315 315 280 499 21/08/2017 23/08/2017 369 685 349 685 28/08/2017 245 280 349 499 22/08/2017 24/08/2017 449 685 315 499 29/08/2017 280 369 280 685 23/08/2017 25/08/2017 349 685 280 315 30/08/2017 349 499 349 499 24/08/2017 26/08/2017 280 315 245 349 31/08/2017 349 685 315 449 25/08/20017 27/08/2017 315 349 315 622 1/09/2017 315 499 245 280 26/08/2017 28/08/2017 245 315 369 68.5 2/09/2017 280 280 245 349 27/08/2017 29/08/2017 315 415 315 685 3/09/2017 280 315 280 499 28/08/2017 30/08/2017 315 685 280 622 4/09/2017 245 280 349 499 29/08/2017 31/08/2017 449 685 280 685 5/ 09/ 2017 280 369 280 685 30/08/2017 1/09/'2017 349 685 280 315 6/09/2017 315 499 245 499.

Aver.age COst= 360.5333333 522.8333333 322.8333333 .564.1666667 33.2.9333333 431.4333333 283.6333333 461.3333333 Ret urn Fl ight 2 Days Out: 683.36 Return Flight 2 Days Out = 1086.99 Return Flight 7 Days Out= 615.96 Ret urn Flight 1 Days Out = 892.76

Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31 August 2017 21 of 22 KALGOORLTE-IlOULDER

1/08/2017 3/08/2017 382 418 169 169 8/08/2017 258.01 572 262 328 2/05/2017 4/08/2017 288 342 258.01 258.01 9/08/2017 462 632 169 169 3/08/2017 5/08/2017 228 sold out sold out 10/08/2017 262 632.01 169 169 4/08/201 6/08/2017 169 258.01 572 632.01 11/08/2017 288 228 169 169 5/08/2017 7/08/2017 258 258 292 632 12/08/2017 228 228 169 169 6/08/2017 8/08/2017 288 572 262 632.01 13/08/2017 169 258 288 288 7/08/2017 9/08/2017 572 632.01 232 328 14/08/2017 258.01 258.01 328 328 8/08/2017 10/08/2017 382 632.01 169 169 15/08/2017 258.01 322 232 292 9/08/2017 11/08/2017 288 322 258.01 258.01 16/08/2017 232 382 232 292 10/08/2017 12/08/2017 228 228 sold out sold out 17/08/2017 348 382 228 228 11/08/2017 13/08/2017 169 258.01 sold out sold out 18/08/2017 288 378 228 228 12/08/2017 14/08/2017 258 258 572 632.01 19/08/2017 228 228 288 288 13/08/2017 15/08/2017 258 322 292 292 20/08/2017 228 258 288 288 14/08/2017 16/08/ 2017 232 418 292 572 21/08/2017 258.01 258.01 328 382 15/08/2017 17/08/2017 418 418 228 228 22/08/2017 258.01 322 232 292 16/08/2017 18/08/2017 342 412.01 258.01 288 23/08/2017 262 418 232 418 17/08/2017 19/08/2017 632.01 632.01 258.01 258.01 24/08/2017 348 382 228 378 18/08/2017 20/08/2017 228 258.01 288 288 25/08/2017 288 322 228 232.21 19/08/2017 21/08/2017 258.01 258.01 328 632.01 26/08/2017 228 228 228 228 20/08/2017 22/08/2017 258.01 322 292 632.01 27/08/2017 228 258.01 288 288 21/08/2017 23/08/2017 292 418 292 462 28/08/2017 258.01 258.01 328 382 22/08/2017 24/08/2017 418 418 228 378 29/08/2017 258.01 322 232 462 23/08/2017 25/08/2017 288 412.01 258.01 288 30/08/2017 262 462 232 572 24/08/2017 26/08/2017 228 228 258.01 258.01 31/08/2017 348 572 228 378 25/08/20017 27/08/2017 228 258.01 288 288 1/09/2017 288 378 228 258.01 26/08/2017 28/08/2017 258.01 258.01 328 632.01 2/09/2017 228 228 228 228 27/08/2017 29/08/2017 258.01 322 292 292 3/09/2017 228 258.01 288 288 28/08/2017 30/08/2017 292 632.01 292 328 4/09/2017 258.01 258.01 328 572 29/08/ 2017 31/08/2017 418 632.01 228 378 5/09/2017 258.01 322 232 632.01 30/08/2017 1/09/2017 288 412.01 258.01 288 6/09/2017 262 462 232 41

Average Cost= 303.4683333 386.4875862 286.7433333 388.5962963 267.503 348.1169 245.6666667 321.4743333 Return Fl ight 2 Days Out = 590.2 Return flight 2 Days Out"' 775.07 Return Flight 7 Days Out= 513.16 Return Flight 7 Days Out= 670.33 • Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia 31August2017 22 of 22 • •

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KALGOORLIE · BOULDER

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