Scone Airport Master Plan Final Report

SCONE AIRPORT MASTER PLAN FINAL REPORT

Prepared for Upper Hunter Shire Council June 2016

Scone Airport Master Plan Report

Table of Contents

Introduction .......................................................................................................................... 2

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1 Introduction

In late 2015, the Upper Hunter Shire Council commissioned three consulting and Leading Edge Aviation Planning Professionals (LEAPP) to prepare a long term Airport Master Plan for the Scone

Airport. The aim of the plan is to provide a guide to the Council as to how the airport might best develop over the next 20 years to 2035, considering growth in aviation demand, upgrading requirements to meet current and future safety compliance standards, land development needs to accommodate aircraft operations and parking requirements over the long term, and expansion of facilities and services offered by the Council to aviation users. The Airport Master Plan provides Council with the necessary information to be able to plan for the long-term strategic development of the airport site, along with guidance to enable short term tactical decisions to be made within the longer-term context. Furthermore, the plan sets out the needs for land use planning controls to ensure that obstacles and other incompatible development does not constrain the airport operation in the future.

In developing the master plan, and in consideration for the strategic nature of the document, the objectives of the Master Plan have been defined so as to:

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Establish a strategic direction for the development of the airport over a 20-year horizon; Identify and safeguard the airport lands for future development as required; and Investigate methods by which the airport can operate more efficiently in the short to medium term.

1.1 Methodology

To achieve these objectives, the plan has considered future aviation demand, the engineering implications of the site, the local community, user requirements, and the regulatory framework by which the airport is governed. In doing so, several key activities were undertaken:

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Site Visit: An initial site visit was conducted in mid-September, 2015 to the Scone Airport with the aim of familiarising the project team with the general layout of the site and the key challenges of the existing facility, and enable a high level assessment of obstacles to be carried out as well as an inventory of facilities on the site, and review of the airport infrastructure from a safety, operational, and condition standpoint. Note this visit did not permit access to the runway due to aircraft operations underway and lack of a radio-equipped escort.

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Stakeholder Consultations: A series of consultations with airport users was carried out in the initial phases of the study. Users contacted include:

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Airspeed Aviation Scone Aero Club Pays Air Services Execujet – Singapore Execujet – Sydney Manildra Stanbroke
Feedback from airport users on the condition of the airport and its facilities was largely consistent, with several key issues highlighted:

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Congested apron / aircraft parking: Several of the business jet operators stated that there are times when, due to aircraft already parked on the apron, passengers were disembarked on the runway and the aircraft returned to the port of origin.

Location of the fuelling facilities: Several parties have mentioned that the location of the fuel dispenser is a concern, both from an operational and safety point of view. One jet operator stated that jet blast from their aircraft may be a safety issue for people using the area when they are manoeuvring on the apron.

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Drainage is a concern for airport management and locally based operators. This comes in the form of ponding of water and localised flooding on the site, and is also a concern for affecting the condition of the pavements.

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The airside pavements are breaking up in some areas and this could cause damage to aircraft propellers and through FOD ingestion into turbine engines.

The equine industry is the main generator of business jet traffic to/from Scone. These aircraft types are considered to be the critical design aircraft for the airport, both currently and for the future.

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Locally-based operators have development aspirations for their companies that would affect the long term development of the airport lands. These include the potential commencement of RPT services and development of airport lands for expanded aviation services such as an aircraft museum.

Data Collection and Review: An extensive data collection task was carried out to assist with the master plan development. Information sources were:

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Airport operational statistics – available from FY-10 to FY-15; Airport management committee meeting minutes; Scone Airport 2014 Strategic Plan;

Previous master planning and safety inspection documents as compiled by “enstruct consulting”;

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Technical survey drawings of the airport layout and land ownership; and Economic and regional development documents and reports

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2 Airport Background and Regional Context

The Scone and Upper Hunter Airport is a general aviation airport serving the town of Scone and the Upper Hunter Shire. Located approximately 300km north of Sydney and 150km northwest of Newcastle by road, the airport currently supports a variety of small aviation businesses and service providers in addition to a multitude of propeller and jet aircraft flying to/from the airport. Owned and operated by the Upper Hunter Shire Council, the airport is understood to occupy a land area of 55.9ha., which includes parcels of the airport lands that have been sold off to private aviation businesses and aircraft owners for hangar development. The airport is accessed from Bunnan Road and is some 3km west of the centre of the Town of Scone. Exhibit 2-1 illustrates the airport in its regional setting.

There is currently no Regular Passenger Transport (RPT) operation at the airport, although it is understood that there may be investigations underway. At one time the airport did accommodate scheduled passenger services provided between Scone and Sydney by Yanda Airlines. This airline used

to fly a “milk-run” service between centres in the Hunter Region, connecting these to Sydney with 9-

seat aircraft. This service proved to be uneconomic once Sydney Airport controlled its slot access and increased it handling charges. The Yanda Airlines service ceased operation altogether in 2011 when the airline was grounded due to safety issues.

Exhibit 2-1

Image: Google Maps

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According to the Scone Airport Strategic Plan 2014, the airport was constructed in 1958 for use by Fokker Friendship F27 aircraft as the design aircraft. Since that time, the airport has undergone several upgrades both for operational and safety compliance reasons. Currently, the airport handles approximately 4,000 aircraft movements per year, with these ranging from light single engine aircraft up to medium executive jets.

The airport acts as a base of operations for three commercial aviation operators, a local aero club, and a number of owners and operators of light aircraft. Two of the larger operators account for the bulk of the aviation activity at the airport due to their commercial charter flight activities, as well as firebombing, aerial applications for agriculture, and flying training. A significant use of the airport by business aviation operators also occurs. Clients of the corporate jet operators are generally those with interests in the local equine industry.

There are a number of airports within reasonable proximity to Scone that could be considered to be competitors, competing to provide services to general aviation operators. Review of other airports in the region suggests that the following airports could, or do, compete with Scone Airport for air traffic. These are:

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Quirindi – 75km away Cessnock – 120km away Maitland – 120km away Newcastle – 150 km away

While Newcastle Airport is a large regional hub, handling over 1.2m passengers per year, it can be regarded as an aviation competitor due to the substantial road network from the city through the Hunter Region. This allows general aviation visitors to fly into the airport and have good access to other parts of the area.

2.1 Airport Business Model

The airport generates revenue through the charging of landing fees to aviation users to assist in covering the cost of operating the facility. The airport currently operates at a loss of approximately $250,000 per annum. To lessen the impact of this annual loss, and provide funding for future capital works at the facility, it is understood that Council has taken steps to increase the fees and types of charges to be levied at the airport. These include:

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Increasing aircraft landing charges Introduction of aircraft parking charges Examining leasing of airport lands for development

A high-level review of rates and charges at similar airports to Scone suggests that it is not uncommon for airports to stipulate these fees, or a combination thereof, as well as other charges. Table 2-1 provides a breakdown of the types of charges levied at other comparable airports.

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Table 2-1

Airport

Airport Type

Types of charges

Flat landing fee / t of MTOW, increased charge for night ops.

Cessnock

GA
Flat charge for Ultralights. Flat landing fee / t MTOW. Graduate parking charges by MTOW.

Goulburn Maitland Moree

GA GA
GA (formerly RPT)
RPT
Flat landing fee / t MTOW. Additional training charges. Graduated landing fees based on MTOW. Parking charge per engine per day.

Mudgee Narrabri Quirindi

Flat landing fee / t of MTOW. Graduated landing fees based on MTOW. Flat Parking charges for aircraft > 1.5t MTOW. Flat landing fee / t MTOW. Per passenger charge for RPT. Per annum charge for parking and apron use.
GA (formerly RPT)
GA

The airport has, in previous years, sold off considerable portions of land to private owners. Whilst this has considerable short term benefit for the council, it limits its revenue generating ability in the long term, in addition to creating development constraints. Leasing arrangements are typically more common at airports as it gives operational and commercial flexibility to all stakeholders whilst providing an income stream to the Council to offset the expenses of the facility. These agreements can vary considerably from the simple leasing of land areas to users to more complex contracts where Council agrees to build and long term lease facilities to users. In all these agreements, Council acts as a landlord for the facility, enjoying long term control over the infrastructure whilst providing users with facilities as required.

Charges for leasing agreements are usually constructed through independent land valuations, generally taking into account the opportunity cost of the property, ultimately working out a fee per square metre. Where facilities are constructed and leased out, they are usually charged by an examination of an appropriate depreciation schedule in addition to a suitable rate of return above this value.

In addition to leasing out of airport lands for development, another revenue generating avenue is the leasing of parking areas to specific users. Currently the airport does not administer leasing charges for these spaces however enhancements to the overall parking layouts, and where possible separating and individualising tie down areas, may open up this revenue source. In turn, operators would benefit from a dedicated and maintained parking area for their aircraft.

2.2 Regional Context

The Upper Hunter Shire is home to an estimated 14,500 residents according the 2011 ABS Census. This accounts for 2% of the total for the Hunter Region (approximately 650,000 residents). The population of the region has remained relatively stable over the previous 15 years which is in contrast to the Hunter region overall that has seen consistent growth over the timeframe. The increase in coal mining activity throughout the Hunter region may be one of the reasons for the growth.

The Shire is most famously known as the horse capital of Australia with the area the largest horse rearing region in the country. According to the Upper Hunter Region Equine Profile – June 2013 published by the Department of Primary Industries, the region is second only to Kentucky, USA in

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terms of the concentration of thoroughbred stud properties. The report states that in 2006, there were 119 horse studs located in the Upper Hunter, accounting for over 6,500 horses and 600 FTEs. The number of horse studs made up 49% of the total found in the greater Hunter Region. In terms of production, the area accounts for approximately 20% of all stud horses in NSW

Outside of the equine industry, the region’s underlying economic sectors are focused on agriculture,

retail, education, health care, and accommodation/food services. The mining industry, which is a large economic driver in other parts of the Hunter Valley, represents approximately 2% of all output. Table 2-2, provides a breakdown of economic activity by sector.

Table 2-2

Industry Sector
Agriculture, Forestry & Fishing* Manufacturing Rental, Hiring & Real Estate Services Construction

$m

%

23% 17% 11%
9% 4% 4% 4% 4% 4% 4% 4% 3% 3% 2% 2% 1%
$292.8 $213.0 $143.0 $114.7
$55.8 $54.9 $54.8 $50.2 $49.7 $49.0 $46.5 $37.9 $35.2 $20.7 $19.4 $15.6 $14.7 $10.6
$2.0

Retail Trade Accommodation & Food Services Transport, Postal & Warehousing Public Administration & Safety Professional, Scientific & Technical Services Education & Training Health Care & Social Assistance Financial & Insurance Services Wholesale Trade Other Services Mining Electricity, Gas, Water & Waste Services Arts & Recreation Services Administrative & Support Services Information Media & Telecommunications

1% 1% 0%

Total

Source: NIEIR

$1,280

100%

*Includes the equine industry

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3 Existing Airport Facilities

The Scone Airport presently operates at a movement rate on the runway in the range of 3500 annual movements (FY 2015) to 5300 annual movements (FY 2014). Aircraft using the runway are primarily light single engine aircraft within the performance/size definition of ICAO Code 1A and used for flight training and private recreational flying. However, the airport is also used by light and medium twinengine aircraft in ICAO Codes 1B and 2B, and by a number of business jets that represent ICAO Codes 3B and 3C. There are occasional flights into the airport by larger corporate jet aircraft meeting the criteria of ICAO Code 4C, however these are infrequent and not operating at maximum gross weight due to the limitation of the runway length for Code 4C aircraft operations.

While the dominant group of aircraft using the airport are light single and twin engine aircraft, the critical aircraft for the purposes of airport safety compliance are those defined under the ICAO Runway/Aircraft code system as being Code 3C aircraft. As the airport has published instrument approaches with minima below those for visual operations, the runway system is required to meet the safety standards for instrument non-precision operations for Code 3C aircraft, and all obstacle clearances on airside where this class of aircraft are permitted to operate also have to be provided to Code 3C criteria.

Operations at the airport also take place under instrument meteorological conditions, and instrument approaches are provided as guidance for these. Operations under IMC are, however, governed by safety clearances to ensure safe operations in what is a potentially hazardous aviation environment due to the presence of high ground to the southeast, east, northeast and northwest of the airport. Circling operations under IMC are restricted to within 3NM of the airport as a result of the surrounding high terrain. Such operations in IMC are also penalised by having high minimum descent altitudes.

As far as the airport infrastructure and facilities in place at the airport are concerned, these have been reviewed during an initial site visit in 2015 and as a result of subsequent documentation review. The major facilities of the airport are discussed below and illustrated in Exhibit 3-1.

3.1 Runway 11/29 & Runway Strip - Physical Features

Scone Airport has a single paved runway with an alignment of 121°- 301°M, and designated as Runway 11/29. The runway is reported in the AIP-ERSA as being 1404m in length and 30m wide. However, from digital mapping, the runway measures only 1400m. As such, an error exists either in the length declared to Airservices Australia or in the digital survey mapping of the airport. The threshold of Runway 11 at the northwest end of the runway is at 225.8m (741ft) ASL, while that for Runway 29 at the southeast end is at 215m (705ft) ASL. It is recommended that council survey the runway to determine its true dimensions and ensure the ERSA is correct.

The runway slopes downhill from northwest to southeast with an elevation difference of 11m (36ft) between the two ends of the runway, and an overall average gradient of 0.8%. Much of this difference in elevation on the runway occurs in the southern half of the runway, resulting in an inability for the pilot of an aircraft at one end of the runway to see an aircraft at the other end of the runway. Despite the actual line of sight between the runway ends meeting MOS Part 139 compliance standards, this does, nevertheless, create a safety hazard for operations on the runway since aircraft can access either end of the runway yet be unaware of another aircraft on the runway unless specific radio calls are made.