Why Australian Airports and Regional Cities are Demanding a Fairer Aviation System.

The Australian Airports Association (AAA) and Regional Capitals Australia (RCA) have formed a new alliance. They signed a Memorandum of Understanding (MoU) to advocate for a fairer aviation system across the nation. This partnership focuses on the financial health of regional airports. It aims to secure better outcomes for regional air service connectivity.

A Critical Partnership for Regional Aviation

This joint advocacy comes at a pivotal time. Two major federal inquiries are currently underway in 2026. One is a Productivity Commission review into regional airfares. The other is a Senate inquiry into the state of the Australian aviation sector. The alliance seeks to put regional communities at the center of this national conversation. Their combined voice provides a stronger, more credible case to the Australian Government.

The alliance highlights structural challenges facing regional airports. These include high regulatory costs and aging infrastructure funding gaps. Many regional airports are owned by local governments. They often operate at a significant financial loss.

The Financial Strain on Regional Airports

Financial viability is a major concern for the entire Australian regional aviation network. Data shows that around 60% of regional airports currently operate at a loss. Furthermore, nearly 40% expect ongoing budget deficits over the next decade. This financial strain forces local councils to cross-subsidize operations using local rates.

One key issue is the disproportionate regulatory burden. Regulatory imposts can be much higher for regional airports. They may represent 12% of total expenditure. This compares to about 4% for major capital city airports. The alliance is pushing for more equitable security requirements. They want to avoid city-level costs on low-risk regional airports.

Impact on Community and Connectivity

Regional airports are vital infrastructure assets. They are the lifeblood of regional communities. These facilities are critical for essential services. They support health, education, and trade. They also play a crucial role in disaster response and resilience.

• The alliance calls for a recurrent federal funding model.
• This funding would cover capital and security costs.
• The goal is to ensure sustainable regional airports and air routes.

Australian Airports Association CEO Simon Westaway noted the Memorandum of Understanding (MoU) formalizes a shared commitment. The partnership aims for evidence-based advocacy. RCA Chair Cr Josh Black emphasized the need for regional airfares and services to be more reliable and equitable. Decisions made during the 2026 inquiries will likely shape the next decade of regional air travel. The alliance seeks to ensure the long-term regional airport financial viability for the benefit of all Australians. The Australian Government Department of Infrastructure is expected to consider these concerns during its policy reviews.

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