DISCUSSION DRAFT
NORTHERN TERRITORY GOVERNMENT
AVIATION INDUSTRY
AND SERVICES
STRATEGY
2020
Aviation Industry and Services Strategy 2020 - Discussion Draft
VISION
To unlock the Territory’s economic and social potential by sustainably
developing regional, domestic and international aviation services
and infrastructure that support our emerging role as an aviation
gateway for northern Australia.
PURPOSE
This Aviation Industry and Services Strategy 2020 outlines the
Northern Territory Government’s Vision for the aviation sector and
provides a framework for Government to partner with industry.
Propelling the Territory Forward as Australia’s Northern Aviation
Gateway Issues Paper released by the Northern Territory
Government in August 2014 detailed issues raised by stakeholders
through a preliminary consultation process. Feedback received
during the paper’s public release has shaped the development of
this Strategy.
The Strategy identifies strategic objectives and priority actions that
will drive sustainability and future growth of the aviation sector in
the Territory. It establishes improved governance arrangements to
streamline Government’s engagement with industry, and provide a
platform for collaboration.
POLICY
CONTEXT
This Aviation Industry and Services Strategy 2020 is a component of
the Northern Territory Government’s Integrated Transport Planning
and Investment Roadmap which sets the vision and investment
framework for the Territory’s future transport, freight and logistics
requirements.
Figure 1: Integrated Transport Planning and Investment Roadmap:
The Northern Territory Government’s Framing the Future policy
provides the blueprint for achieving a Prosperous Economy,
Balanced Environment, Strong Society and Confident Culture and
sets the framework for aviation industry and service development in
the Northern Territory.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
Other policy drivers include the Developing the North agenda,
Tourism Vision 2020, Economic Development Strategy, Asian
Engagement Trade and Investment Strategy, and Northern Territory
International Education and Training Strategy.
The aviation policy context is largely determined by the Australian
Government, which has legislative responsibility for airports, aviation
safety and security, and international air services arrangements.
Through the process of developing the Our North, Our Future: White
Paper on Developing Northern Australia, the Northern Territory
Government has continued to lobby for policy and regulatory
changes that would lead to aviation sector growth and broader and
economic gains.
The Northern Territory is leading the development of the National
Remote and Regional Transport Strategy which seeks federal
reforms that would reduce airport operating costs and improve
resourcing and management of remote aerodromes.
FOREWORD
The Northern Territory represents 1% of Australia’s population
yet close to 18% of its landmass, with a population of 243,000
spread over a vast area the size of New South Wales, Victoria,
Tasmania and the Australian Capital Territory combined.
The Territory relies heavily on air services to bridge the great
distances between Darwin, Alice Springs and other Australian
cities, and to connect the Territory’s regional towns and remote
communities. International air services provide vital tourism, trade
business and trade links, and support the Territory’s close
relationship with Asia and the world beyond.
Aviation is fundamental to the economic development of the
Northern Territory and is a key enabler of long term growth. The
aviation sector benefits the Northern Territory’s economy through
its direct contribution to Gross Domestic Product and employment
and its facilitation of trade, business, investment, tourism, skills
development and effective supply chains.
Air services also enable participation in cultural, recreational and
leisure activities and access to health and education services,
thereby advancing social cohesion, wellbeing and participation.
The Northern Territory’s strategic location, extensive natural
attractions and cultural experiences, increasing resource and
defence sector activity, burgeoning agricultural and tourism
markets, and emerging service industries are some of the
opportunities that the Territory is well positioned to capitalise on.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGIC OBJECTIVES
OBJECTIVES
PRIORITY ACTIONS
1. Support the
1.1
Sustainable
Growth of
International
and Domestic
Services
1.2
1.3
1.4
1.5
1.6
1.7
2. Drive Aviation
Sector
Development as
an Enabler of
Tourism and
Economic
Growth
Promote Darwin as northern Australia’s primary aviation
gateway to Asia and the rest of the world.
Work with the aviation industry to support the
sustainability of, and increase the frequency of, the
Territory’s existing regional, domestic and international air
services.
Work collaboratively to pursue new air services in key
international markets, including China and New Zealand.
Explore the potential for economic investment attraction
packages linked to new aviation services.
Encourage competition on domestic routes to increase
consumer choice and airfare affordability.
Support the re-establishment of regular air services to
connect Katherine and Tennant Creek to Darwin and Alice
Springs.
Develop a policy framework to guide Government support
for the establishment of new Regular Public Transport
services to remote and regional areas.
2.1
Capitalise on the Australian Government’s White Paper
commitment to improve aviation access across northern
Australia, working together with the business stakeholder
group.
2.2
Work with the aviation industry to increase air service
capacity to meet tourism growth.
Work with Defence and support industries to secure
opportunities for local aviation businesses.
Work collaboratively to establish efficient and affordable
aviation links to priority international education and
training countries.
Collaborate with industry to maximise utilisation of
available air freight capacity for local perishable and
other high value time-sensitive goods, with a view to
significantly expanding air cargo exports.
Work with industry to assess freight infrastructure and support
requirements, including the viability of a cold storage facility
at Darwin International Airport.
Support the establishment of new, and expansion of
existing, aviation businesses in the Northern Territory.
Undertake research and analysis of the helicopter aviation
sector to identify market composition and size, existing
services, regulatory barriers and industry gaps, and
support development opportunities.
Provide education, training and apprenticeship programs
to support aviation sector workforce development.
2.3
2.4
2.5
2.6
2.7
2.8
2.9
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Aviation Industry and Services Strategy 2020 - Discussion Draft
OBJECTIVES
PRIORITY ACTIONS
2.10 Support the delivery of training for the Northern Territory’s
aviation workforce and continue to explore the feasibility
of a locally based Registered Training Organisation.
3. Ensure Airport
Infrastructure
Meets Future
Aviation Needs
and Supports
Economic
Development
3.1
3.2
3.3
3.4
3.5
4. Establish Policy,
Planning and
Regulatory
Settings that
Support Aviation
Sector Growth
4.1
4.2
4.3
4.4
Ensure the Northern Territory’s airports remain curfew-free
and open for business 24/7.
Safeguard land for airport operations and set aside land
for new airports to accommodate growth in cargo and
general aviation needs.
Work with stakeholders to plan for the future development
of the Territory’s regional airports.
Link major project approvals to the use of existing airports
and aerodromes to support viability and sustainability
where feasible and appropriate.
Support remote aerodrome owners to implement tenure,
management and operational arrangements that expedite
capital investment, ensure safety requirements are met,
and enable air services to continue at current levels and
grow where feasible.
Establish Northern Territory Government air charter
operator panel contracts for government funded travel, to
provide cost effective and administratively efficient service
options that meet established safety and operational
specifications.
Establish a Northern Territory Aviation Industry Reference
Group as the mechanism for engagement with the Northern
Territory Government on aviation issues.
Streamline governance arrangements to ensure a
coordinated approach to aviation within the Northern
Territory Government.
Continue to advocate for the Australian Government to:
 consider the impact on the viability and sustainability
of existing Northern Territory aviation services in any
proposed regulatory changes;
 reduce the cost and regulatory burden of security,
border control and processing requirements on
international air passengers in the Northern Territory;
 establish policies that support the development of
northern Australia and its aviation sector and
associated industries;
 ensure that safety and security regulatory
requirements of airports and aerodromes are tailored
to the level of risk presented; and
 provide firefighting and emergency rescue services at
Katherine Tindal Airport to allow it to operate as an
alternate destination for Darwin International Airport
at no cost to the Northern Territory.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGIC
OBJECTIVE 1
SUPPORT THE SUSTAINABLE GROWTH OF
INTERNATIONAL AND DOMESTIC SERVICES
The Northern Territory Government’s focus on attracting airlines,
working closely with other stakeholders, has seen a significant
expansion of air services to the Territory. Ensuring demand meets
capacity while continuing to explore other opportunities for
strategic growth are important areas of focus for the Northern
Territory over the next five years.
Figure 2: Passengers and Seat Capacity – Darwin, Alice Springs and Ayers Rock Airports1:
Thousands
International
Domestic
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Passengers
Seat Capacity
2010
INTERNATIONAL
SERVICES
Passengers
Seat Capacity
2014
The Northern Territory’s international seat capacity has grown
strongly over the last few years, with an estimated five-year
Compound Annual Growth Rate of 12% since 2010. This reflects
the Northern Territory’s strong economic and population growth,
as well as Territorians’ growing appetite for international travel
and visitors’ interest in the Territory as a leading tourism
destination.
The Northern Territory’s largest inbound international markets are
concentrated in the United Kingdom, Europe, the United States
and Japan. Emerging markets in Asia and New Zealand are of
growing importance to the Territory. New Zealand is the Northern
Territory’s largest international market that is within range of, yet
lacks, non-stop services to the Northern Territory. South East Asian
markets tend to be dominated by Northern Territory resident
demand, while European markets are more heavily weighted
towards visitors. New Zealand, the United States and North Asian
markets show a more balanced passenger profile.
Darwin International Airport now has direct services into a range
of Asian ports, provided by a mix of low cost and full service
international carriers. From hubs in Asia, the Territory is linked to
the rest of Asia, Europe, and the world beyond.
1
Bureau of Infrastructure, Transport and Regional Economics.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
The past five years has seen growth in the number of Asian
markets including the Philippines, India, Indonesia and Taiwan.
Since 2000, Northern Territory visitor numbers from China have
grown at an average rate of 18% per annum, albeit from a low
base. China still only represents a 2% share of the Territory’s
total international visitation and shows significant potential for
future growth.
Figure 3: Passenger Mix of the NT’s Top 20 International Origin-Destination Markets2:
88%
NT
Visitors
Germany 12%
88%
80%
20%
France
Netherlands 12%
78%
22%
Taiwan
69%
31%
UK
78%
68%
32%
Japan
22%
66%
34%
USA
Ireland
65%
35%
Canada
62%
38%
Italy
57%
43%
China
52%
48%
NZ
46%
54%
Malaysia
41%
59%
Singapore
37%
63%
India
30%
70%
Philippines
28%
72%
Timor-Leste
14%
86%
Vietnam
13%
87%
Thailand
Indonesia
93%
7%
Percent of total passenger movements.
NT
Residents
The Northern Territory’s iconic natural assets such as Uluru and
Kakadu are major attractions which draw international visitors to
Australia. While presently the vast majority of international
visitors to the Territory access Australia through other ports such
as Sydney, Melbourne and Brisbane, Darwin is of increasing
importance as a regional international airport.
Linking marketing, promotions and trade relationships, both
domestic and international, is important for improving air access
to the Northern Territory. Positioning Darwin as an entry point into
northern Australia and a gateway to Uluru and Kakadu for
international travellers, and a stopover point for passengers
transiting into and out of Asia, is a priority for Government.
With the Territory’s core international markets expected to
remain concentrated in the western hemisphere into the medium
term, aviation hubs in Asia will continue to be vital for the
Northern Territory and are strategically important for increasing
the number of long-haul travellers entering Australia through
Darwin International Airport.
It is anticipated that capacity into Australia from Asian hubs such
as Singapore will consolidate over the medium term as the
volume of long-haul traffic through hubs in the Middle East
increases. Qantas has already moved its hub from Asia to the
Middle East in response to changes in the operating environment.
2DIBP;
Ailevon Pacific Aviation Consulting analysis.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
The Northern Territory Government will continue to work with
airlines, airports and other key stakeholders to market the
Territory as a place to do business, host a conference, visit, or
transit through, to support the sustainability of existing services as
well as promote growth.
Innovative ideas being explored by the Northern Territory
Government include initiatives such as holistic economic investment
attraction packages linked to new air services.
DOMESTIC
SERVICES
The Northern Territory has a strong domestic network with major
airports at Darwin, Alice Springs, and Ayers Rock which are well
connected to the rest of Australia. Recent years have seen a
number of new services and expanded domestic air capacity.
Two-thirds of the Territory’s domestic capacity passes through
Darwin Airport, with most of the remaining third passing through
Alice Springs and Ayers Rock Airports.
With a vast majority of international visitors to the Territory
arriving through other Australian airports, strong domestic links
and connectivity that encourages visitation are crucial.
Diversification of the market, support for competition and a mix
of carriers to suit different travel budgets and needs will assist in
attracting visitors to the Territory and ensuring travel is accessible
and affordable for Territorians.
REGIONAL AND
REMOTE
SERVICES
Regional and remote air transport is an essential enabler for
stimulating regional economies and tourism and connecting
residents to major regional centres.
Ensuring the Northern Territory’s regional centres of Gove,
Katherine and Tennant Creek are well connected into Darwin and
Alice Springs is a priority for Government.
Vast distances by road and lack of access during northern
Australia’s wet season make air services essential for many of the
Northern Territory’s remote communities. Regular Public Transport
air services currently operate to only a small number of the
Territory’s major remote communities and regional centres, with
charter services relied on to provide air access to most areas.
The Northern Territory Government is committed to increasing
remote access to Regular Public Transport air services. A policy
framework will be developed to guide future decision making
about the provision of Government support for new air services
for transport-disadvantaged communities. Communities and
industry will be consulted in developing this framework.
The Australian Government provides important support to
regional aviation, including through subsidisation of charter flight
services carrying passengers and essential supplies to remote
communities. It is essential that the Northern Territory gets its fair
share of this funding.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
PRIORITY ACTIONS - STRATEGIC OBJECTIVE 1
SUPPORTING THE SUSTAINABLE GROWTH OF INTERNATIONAL AND
DOMESTIC SERVICES:
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Priority Action
NT Government Agency
Promote Darwin as northern Australia’s primary
Department of Transport /
aviation gateway to Asia and the rest of the
Tourism NT
world.
Work with the aviation industry to support the
Department of Transport /
sustainability of, and increase the frequency of,
Tourism NT
the Territory’s existing regional, domestic and
international air services.
Work collaboratively to pursue new air services
Department of Transport /
in key international markets, including China
Tourism NT / Department of
and New Zealand.
Business
Explore the potential for economic investment
Department of Transport /
attraction packages linked to new aviation
Tourism NT / Department of
services.
Business / Department of the
Chief Minister
Encourage competition on domestic routes to
Department of Transport /
increase consumer choice and airfare
Tourism NT
affordability.
Department of Transport
Support the re-establishment of regular air
services to connect Katherine and Tennant Creek
to Darwin and Alice Springs.
Department of Transport
Develop a policy framework to guide
Government support for the establishment of
new Regular Public Transport services to remote
and regional areas.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGIC
OBJECTIVE 2
DRIVE AVIATION SECTOR DEVELOPMENT AS
AN ENABLER OF TOURISM AND ECONOMIC
GROWTH
The Northern Territory is on the doorstep of the aviation industry’s
most dynamic aviation region.
GEOGRAPHIC
ADVANTAGE
Boeing and Airbus have both determined that the Asia-Pacific
region will see the most new aircraft over the next two decades,
and will account for more than a third of new global aircraft
capacity. According to Boeing, "Over the next 20 years, nearly
half of the world's air traffic growth will be driven by travel to,
from or within the region. The Asia-Pacific fleet will nearly triple,
from 5090 airplanes in 2012 to 14,750 airplanes in 2032, to
support the increased demand”.
The forecast growth in the Asia-Pacific region is largely driven by
rising incomes among the middle class in most Asian countries,
increased demand for air travel, and the emergence of low cost
carriers in the region that offer air travel at prices within the
financial means of these new travellers.
As at the end of 2014, low cost carriers had more than 1600
aircraft on order. Consequently, significant capacity and demand
growth can be expected by Asia-Pacific low cost carriers. These
carriers have typically operated business models that focus on
flying routes under five hours’ flying time from their home bases
using 737 and A320 aircraft.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
To the Northern Territory’s advantage, Darwin lies within five
hours’ flying of most South East Asian airline hubs, meaning that
the Northern Territory has a significant opportunity to boost its
connections into Asia.
Countries to the Northern Territory’s north are in the process of
implementing an ambitious Association of South East Asian
Nations (ASEAN) Single Aviation Market, or ‘open-skies’
arrangement, whereby the airlines of each country can operate
an unlimited amount of capacity between ASEAN countries, and
quite likely beyond any ASEAN country and Australia. This could
mean, for instance, the ability for an Indonesian carrier to fly
nonstop between Darwin and Bangkok, or for a Singaporean
carrier to fly between Darwin and Indonesia.
The formation of the ASEAN Single Aviation Market raises a
number of opportunities for increased air links between the
Northern Territory and South East Asia.
Australia’s airlines have increasingly forged relationships with
foreign airline partners, allowing for greater marketing, sales
and network reach. Partner airlines can extend an airline’s reach,
with some of these airlines now ‘virtually present’ in the Northern
Territory as a result of codeshare and other arrangements with
current airline operators.
The Northern Territory can benefit from these relationships, with
travel to the Territory not only ‘visible’ and able to be booked
within markets served by the Northern Territory’s airline
operators, but also within those markets of their partner airlines.
As a result, attracting new airlines to the Northern Territory –
especially those with many airline partners – has a multiplier
effect on the number of markets in which the Territory has a
presence.
The Australian Government’s Our North, Our Future White Paper on
Developing Northern Australia recognises that by 2030, two thirds of
the world’s middle class will reside in the Asia Pacific Region and
commits to establish a business stakeholder group to prepare a plan
for improving aviation and surface transport connections to northern
Australia. This is to include developing measures to support the
sustainable and long term growth of domestic and international
airline services to and from northern Australia, identifying
opportunities to better integrate the north with ASEAN trading
partners and the region.
It is essential that the Northern Territory’s interests are championed
through this planning process and the business stakeholder group
must be fully representative of the Territory’s aviation sector.
TOURISM
Tourism Vision 2020: Northern Territory’s Strategy for Growth
projects that as visitor numbers grow to the 2020 target, an
increase in aviation capacity will be required to accommodate
increased passenger demand.
To deliver on the 2020 target, an immediate priority for Tourism
NT is to continue demand generation activities to ensure that
existing services are maintained. At the same time, to achieve
growth targets from inbound source markets, a focus on aviation
capacity expansion is also required, particularly from short-haul
destinations in Asia.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
The international tourism focus is on maximising investments in the
Territory’s traditional source markets of the United Kingdom,
Europe, North America and Japan, capitalising on the high
growth potential of China and undertaking targeted investments
in Singapore, Malaysia, Taiwan and South Korea.
An overwhelming majority of the Northern Territory’s international
visitors enter Australia through southern Australian ports,
highlighting the critical importance of domestic air-links to the
flow of international visitors to the Territory and the need to
undertake targeted efforts with airlines to promote such links.
The Northern Territory’s competitive tourism strength is in
providing active, unique and engaging visitor experiences that
are a unique blend of nature and culture. The majority of
domestic and international leisure visitors come to the Northern
Territory for these core experiences.
Tourism NT works with airlines to link marketing, promotions and
trade relationships in order to leverage and support air access to
the Territory.
Cooperative Marketing Approaches with Airlines and Other
Partners
Tourism NT routinely undertakes cooperative marketing
campaigns in partnership with airlines which have delivered
positive results for the tourism and aviation sectors and the
Northern Territory’s economy. Tourism NT leverages funds from
other partners such as wholesalers or travel retailers to promote
attractive airfares and packages to the Northern Territory. As an
example, in January 2014 a cooperative campaign was run with
Jetstar in Singapore across digital and social platforms and
featured Darwin as a weekend getaway destination. This
generated the sale of 276 seats in four days.
DEFENCE
SERVICES AND
SUPPORT
The Territory’s wide open expanses and air space provides the
perfect environment for Air Force training and exercises.
Royal Australian Air Force (RAAF) Base Tindal is located 15 km
from the township of Katherine and 320 km south-east of Darwin.
Without the urban encroachment and subsequent noise issues
experienced at other bases, the location makes it ideal for
increased activity by Australian and foreign air forces. The Base
is the home of the 75 squadron and its F/A-18 Hornet fighter jets
and support squadrons. The Base also plays a key role as the
designated alternate airport to Darwin for civilian aircraft.
The planned acquisition by Defence of Unmanned Aerial Systems
(UAS) provides opportunity for basing in the Northern Territory
close to the proposed area of operations off northern Australia.
The basing of these large aircraft at RAAF Base Tindal could
provide support opportunities for local industry as well as attract
a major prime contractor.
The potential growth of UAS in Defence and civilian activities in
northern Australia may see the development of a new segment
within the Northern Territory’s aviation industry and
corresponding opportunities for the establishment of local
aviation support businesses.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
EDUCATION AND
TRAINING
International education and training is Australia’s fourth largest
export industry but ranks ninth for the Northern Territory,
indicating strong potential for growth. In the Northern Territory, in
2013-14 the value of education as an export for the Northern
Territory was $61 million3 and it supported 450 jobs4.
The Northern Territory is well placed to grow the international
education and training sector. Strong aviation connections into
Asia are essential for the Territory to succeed in attracting
international interest in local education and training opportunities
and delivering the objectives of the Northern Territory
International Education and Training Strategy.
Affordable and accessible air links into Asia, particularly those
countries where the Northern Territory has education and
research partnerships and exchange programs – Cambodia,
China, Hong Kong, Indonesia, India, Japan, Malaysia, Papua
New Guinea, the Philippines, Nepal, Sri Lanka and Timor-Leste –
will support this sector to grow.
AIRFREIGHT AND
LOGISTICS
The Bureau of Infrastructure, Transport and Regional Economics’
aviation statistics show low levels of international airfreight
carried in and out of Darwin, with 410 tonnes of freight carried
on international flights in 2013-2014, up from 320 tonnes or
25.5% from 2012-2013. This freight volume is low when
assessed against regional airports of a comparable size.
Although airfreight data for domestic routes is not readily
available, given the substantial passenger aircraft capacity
servicing the Northern Territory, it is anticipated that there is also
significant opportunity for increasing airfreight usage.
Refrigerated container capability is central in reducing costs
relation to agricultural exports from the region, but is currently
non-existent in the Northern Territory. The lack of wide bodied
aircraft servicing the Territory is another constraint.
Through the development of the Northern Territory Freight and
Logistics Industry Strategy the Northern Territory Government is
examining what infrastructure investment and industry support is
required to increase uptake of air cargo capacity and export
growth. Specific consideration will be given to demand for, and
viability of a cold storage facility at Darwin International Airport.
BUSINESS
OPPORTUNITIES
Rapidly rising living standards in Asia and growing affluence is
creating significant new trading opportunities for Northern
Territory businesses including growth in tourism, business travel
and freight transport.
The Northern Territory is experiencing a significant level of
resource development and exploration. The resource sector drives
substantial demand for aviation services due to fly-in-fly-out
workforce requirements and reliance on supply and service hubs
within the Northern Territory. New Regular Public Transport
3
4
Australian Bureau of Statistics catalogue 5368.0.55.003.
Economic Contribution of International Education and Training to the Northern Territory Economy Report, Northern Territory Department of Education.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
services, including to international destinations, may be stimulated
by increased travel and trade activity.
The resource sector has supported the increased viability of
airports and aerodromes across the Territory, along with aviation
sector and support industry growth.
There is significant potential for the aviation sector in servicing
new niche aviation businesses, drawing upon the Territory’s key
cultural, tourism and geographic advantages. An example is the
evolving agribusiness industry, with aviation services recognised
as essential for the timely and reliable export of high quality
local products to niche domestic and international markets.
The Northern Territory Government delivers a range of programs
to assist local businesses to establish and grow. This includes
support for building stronger trading partnerships and creating
new export opportunities.
Innovative Business Concepts Beyond the Conventional
The Asia Pacific Aircraft Storage facility which has been
established in Alice Springs is the first of its kind outside of the
United States of America. The facility caters for the storage
needs of the airline industry, providing the first Asia-Pacific
based alternative for operators in the region. The facility
occupies a site within the Alice Springs airport complex which has
sufficient area for potential future expansion, with the dry arid
environment of central Australia ideally suited for aircraft
preservation and storage.
The facility is already employing locally based staff and will
require a highly specialised workforce as the business grows.
Alice Springs has the potential to become an aviation industry
hub servicing stored commercial and defence aircraft over the
coming years.
Helicopters in the Northern Territory provide transport for offshore oil and gas operations and tourism opportunities, including
scenic flights over the Territory’s iconic features, heli-fishing,
mustering, spraying and seeding, and medical transport.
The Australian helicopter industry has exceeded the growth rate
of all other sectors of Australian aviation, and account for onethird of the nearly 600 aircraft which have a registered operator
in the Northern Territory. This is the highest rate in Australia.
CASA figures indicate that helicopter numbers in Australia have
doubled in the last ten years and are likely to double again in
the next five years.
To position the Northern Territory to capitalise on this sector
growth, work needs to be undertaken to better understand the
market composition and size, existing services and support
opportunities and industry gaps. Australian Government
regulatory requirements need to remain flexible enough for
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Aviation Industry and Services Strategy 2020 - Discussion Draft
helicopters to be used for diverse activities in while ensuring pilot
and passenger safety.
WORKFORCE
DEVELOPMENT
The aviation sector directly employs more than 1400 workers in
the Territory and supports many more indirectly. To ensure the
Northern Territory is able to respond to its growing and
diversifying aviation sector, it is essential that governments and
industry work together to expand and develop the aviation
workforce.
Introducing vocational education and training programs in schools,
school based apprenticeships and full-time apprenticeships would
promote the industry and enhance local recruitment. Subsidised
vocational education training for the aviation industry is
supported by the Northern Territory Government and occurs
through apprenticeships with funding provided to two interstate
Registered Training Organisations (RTOs) that specialise in
aviation training.
To date it has not been financially viable for an RTO to be based
in the Northern Territory due to relatively low demand and the
specialist infrastructure required to support the training of
apprentices in the aviation industry. Training is therefore currently
provided interstate, with apprentice travel and accommodation
subsidised by Government.
Training provided interstate needs to be appropriately targeted
to respond to the unique aviation needs of the Territory and the
Northern Territory Government is working closely with the
Australian Government to analyse the aviation workforce and
broader industry to inform future skills development and training
policies. Opportunities to see training delivered by a local RTO
will continue to be explored.
PRIORITY ACTIONS - STRATEGIC OBJECTIVE 2
DRIVING AVIATION SECTOR DEVELOPMENT AS AN ENABLER OF
TOURISM AND ECONOMIC GROWTH:
2.1
2.2
2.3
2.4
Priority Action
Capitalise on the Australian Government’s
White Paper commitment to improve aviation
access across northern Australia, working
together with the business stakeholder group.
Work with the aviation industry to increase air
service capacity to meet tourism growth.
Work with Defence and support industries to
secure opportunities for local aviation
businesses.
Work collaboratively to establish efficient and
affordable
aviation
links
to
priority
international education and training countries.
NT Government Agency
Department of Transport
Department of Transport /
Tourism NT
Department of the Chief Minister
/ Department of Business
Department of Transport /
Department of Education
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Aviation Industry and Services Strategy 2020 - Discussion Draft
2.5
Collaborate with industry to maximise utilisation
of available air freight capacity for local
perishable and other high value time-sensitive
goods, with a view to significantly expanding
air cargo exports.
2.6 Work with industry to assess freight infrastructure
and support requirements, including the viability
of a cold storage facility at Darwin International
Airport.
2.7 Support the establishment of new, and
expansion of existing, aviation businesses in the
Northern Territory.
2.8 Undertake research and analysis of the
helicopter aviation sector to identify market
composition and size, existing services,
regulatory barriers and industry gaps, and
support development opportunities.
2.9 Provide education, training and apprenticeship
programs to support aviation sector workforce
development.
2.10 Support the delivery of training for the
Northern Territory’s aviation workforce and
continue to explore the feasibility of a locally
based Registered Training Organisation.
Department of Transport /
Department of Business /
Department of Primary Industry
and Fisheries
Department of Transport /
Department of Business /
Department of Primary Industry and
Fisheries
Department of Business
Department of Business /
Department of Transport
Department of Education /
Department of Business
Department of Business
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGIC
OBJECTIVE 3
ENSURE AIRPORT INFRASTRUCTURE AND
PLANNING SUPPORTS ECONOMIC
DEVELOPMENT AND MEETS FUTURE
AVIATION NEEDS
The Northern Territory offers significant potential for aviation
industry growth and this growth needs to be underpinned by high
quality infrastructure.
DARWIN
Darwin International Airport is co-located with the Royal
Australian Airforce Base Darwin and provides an integrated
domestic and international terminal, 24 hour curfew free
operations and a 3800 metre, A380-capable runway.
Over two million passengers moved through Darwin International
Airport in 2013-14, making it the 10th busiest airport in
Australia. The airport has recorded an average annual growth
rate of 6% over a 5-year period, the second highest of the top
10 airports in Australia.
Darwin is the sole international gateway airport in the Northern
Territory, and the airport’s success in attracting new international
services has contributed significantly to the Northern Territory’s
growth in international travel demand. Solid growth in demand
for air services at Darwin International Airport reflects the
Territory’s continued strong economic growth, particularly in the
resource, energy, construction and tourism sectors.
As Darwin International Airport maintains its role as a primary
international and domestic passenger terminal into the future,
increasing cargo transport and general aviation demands may
see the need for a second airport to cater specifically for this
demand.
The land use structure within the Darwin Regional Land Use Plan
which has been developed by the Northern Territory Government
identifies a site for a second airport on Blackmore Peninsula to
the west of Middle Arm. The identification of this site for future
use as an airport will assist with ongoing land use planning and
enable the site to be protected from the potential encroachment
of incompatible land use in surrounding areas.
ALICE SPRINGS
Alice Springs Airport plays an important role as a point of access
to a vast area which holds many of Australia’s international and
iconic cultural and geological attractions.
Alice Springs has direct services to almost all of Australia’s
capitals and provides a key role in connecting South Eastern
Australia with Central and northern Australia, Perth and Adelaide
to Darwin and Cairns. Alice Springs Airport has seen limited
growth over the past ten years, however the market has
demonstrated positive responses to competition on key routes.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
AYERS ROCK
As the gateway to some of Australia’s premier tourism and
cultural destinations, Uluru and Kata Tjuta, Ayers Rock Airport
provides vital transport and supply links for tourism. With direct
services to Alice Springs, Cairns, Melbourne and Sydney, Ayers
Rock is well connected to major tourism markets with multiple
airline operators.
After a decline between 2012 and 2014, the number of annual
passengers at Ayers Rock Airport grew by 31.4% in the period
March 2014 to March 20155.
The Airport’s passenger performance has the potential to continue
to grow as a result of increased tourism activity. Investment in
infrastructure needs to correspond to increasing demand for
access to the airport.
REGIONAL AND
REMOTE
Airports servicing Tennant Creek, Katherine and Gove remain
critical for supporting business development and access to
services. Government is committed to supporting these and other
regional airports as viable business operations that can grow and
diversify the regional aviation industry profile.
Batchelor Airport, located 100 km south of Darwin, is
strategically positioned as the gateway to Litchfield National
Park, and is already the base for a number of aviation
businesses. The Airport has potential to develop into a commercial
general aviation support precinct for the region.
Currently 70 remote aerodromes receive some level of funding
support from the Northern Territory Government. As 50 of these
aerodromes are on Aboriginal Land and are owned by various
Land Trusts, there is an onus on the Land Councils and Office of
Township Leasing to resolve tenure and operational arrangements
to: facilitate government investment in capital and maintenance;
ensure Civil Aviation and Safety Authority standards are met;
and maintain and grow the level of remote air services in the
Territory.
The Australian Government has committed to continue to provide
funding for remote airstrip upgrades and the Northern Territory
must capitalise on this opportunity.
Managing and maintaining remote and regional aerodromes is
resource intensive and supporting the use of existing aerodrome
infrastructure by major projects is one way government can assist
in ensuring the viability of these important assets.
In remote areas, accommodating passengers on air services with
a disability is a major challenge. Through national forums and the
regular review of the Australian Government’s Disability
Standards for Accessible Public Transport, the Northern Territory
Government will continue to advocate for improved air transport
accessibility.
5
Bureau of Infrastructure, Transport and Regional Economics Statistical Report - Aviation – Domestic Aviation Activity March 2015.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
PRIORITY ACTIONS - STRATEGIC OBJECTIVE 3
ENSURING AIRPORT INFRASTRUCTURE MEETS FUTURE AVIATION
NEEDS AND SUPPORTS ECONOMIC DEVELOPMENT:
3.1
3.2
3.3
3.4
3.5
Priority Action
NT Government Agency
Ensure the Northern Territory’s airports remain
Department of Lands, Planning
curfew-free and open for business 24/7.
and the Environment
Safeguard land for airport operations and set
Department of Lands, Planning
aside land for new airports to accommodate
and the Environment
growth in cargo and general aviation needs.
Department of Transport
Work with stakeholders to plan for the future
development of the Territory’s regional airports.
Link major project approvals to the use of
Department of the Chief Minister
existing airports and aerodromes to support
/ Department of Mines and
viability and sustainability, where feasible and
Energy / Department of Transport
appropriate.
Department of Transport
Support remote aerodrome owners to
implement tenure, management and operational
arrangements that expedite capital investment,
ensure safety requirements are met, and enable
air services to continue at current levels and
grow where feasible.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGIC
OBJECTIVE 4
ESTABLISH POLICY, PLANNING AND
REGULATORY SETTINGS THAT SUPPORT
AVIATION SECTOR GROWTH
The Australian Government is responsible for air safety and
security, civil aviation regulation and publicly owned, privately
leased airports.
The Northern Territory Government works with industry to support
regional, domestic and international air service development and
has responsibility for off-airport land use planning.
GOVERNMENT’S
ROLE IN AVIATION
The Northern Territory Government has no formal aviation
regulatory responsibilities or role.
The Northern Territory Government is responsible for encouraging
economic and social development, supporting business
opportunities and trade, establishing a policy and regulatory
environment that facilities private sector investment, and
delivering essential community services.
The Northern Territory Government will continue to work closely
with industry to enhance the Territory’s aviation services and a
Northern Territory Aviation Industry Reference Group will be
established to support this collaborative process.
With a large number of Northern Territory Government agencies
responsible for various aviation roles and functions, Government
is streamlining governance arrangements and establishing a high
level Chief Executives group to ensure there is a coordinated and
strategic approach to aviation services development.
The Australian Government is responsible for regulating air
safety, aviation carrier liability, security, bilateral air services
agreements and publicly owned airports that are leased to
private operators. The Australian Government is also responsible
for overseeing on-airport planning of leased airports, building
and environmental clearances and provides financial assistance
for remote air services and aerodromes.
Ensuring the Australian Government’s regulatory regime supports
efficient and affordable air services in the Northern Territory
remains a key challenge.
The Australian Government’s aviation policy platform includes a
commitment to conduct a review of aviation safety and
regulation, to focus on the better utilisation of Australian
airspace, support regional and remote aviation, enhance aviation
skills, training and development and ensure that aviation security
measures are risk based.
A detailed list of Northern Territory and Australian Government
regulatory, policy and administrative responsibilities is provided
at Annexure A.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
NT GOVERNMENT
USE OF AVIATION
SERVICES
The Northern Territory Government has established a panel of air
operators to meet government’s service requirements for regular
and ad hoc intra-Territory short haul domestic and long haul
passenger air charter travel, generally to international and/or
interstate destinations.
The objective is to ensure air charter services meet standardised
safety and operational specifications, provide cost effective and
administratively efficient service options, support opportunities for
agencies to coordinate use of charters across the Territory, and
maximise opportunities for local operators with required
capabilities.
To support the sustainability of Regular Public Transport services,
the Northern Territory Government will continue to use scheduled
services where they exist, with air charters to be used where it is
determined that they are more cost, time and logistically
effective.
REGULATORY
ISSUES
National aviation regulatory requirements continue to have a
disproportionate impact on the Northern Territory compared to
other jurisdictions.
The Northern Territory Government will closely monitor the
development and implementation of the Australian Government’s
policy agenda and will continue to lobby for aviation regulatory
changes to support the Territory’s goals.
THE COST OF SAFETY
AND SECURITY
Australian Government regulatory requirements impose a high
cost burden on low passenger volume airports.
All security designated airports have fixed security infrastructure
and capability requirements which need to be recovered through
passenger charges. Cost recovery charges are sensitive to
passenger numbers, meaning that low passenger volume airports
such as those in the Northern Territory need to impose higher
charges per passenger compared with other major Australian
airports. For example, at Darwin International Airport, the
charges are ten times that of Sydney Airport. Alice Springs also
faces high security charges, due, in part to its close proximity to
the Joint Defence Facility Pine Gap.
While recognising the need for safety and security, the Northern
Territory Government will continue to advocate for the Australian
Government to address this barrier to the development of
northern Australia, either through the introduction of a national
network pricing model to share airport security costs equally per
passenger, or assistance with meeting airport security costs.
Safety and security requirements and their impact on the cost of
air travel can also act as an inhibitor for the use of larger aircraft
or the operation of scheduled services at the Territory’s regional
airports and remote aerodromes.
The high cost and intensive resource requirements of regulations
also add a burden to airport operators and affect the
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Aviation Industry and Services Strategy 2020 - Discussion Draft
sustainability of the Territory’s small, remote aerodromes. For
these aerodromes, regulatory costs, on top of other challenges
such as low passenger numbers, long distances, and high
operating and maintenance costs, mean these aerodromes will
never be commercially viable without the need for ongoing
financial support from other revenue sources.
It would be appropriate for security and safety standards to be
tailored to the level of risk presented by the airport or
aerodrome and the services it receives, thereby reducing the
regulatory burden and associated costs, and improving the
viability of air services.
PASSENGER MOVEMENT
CHARGE
The Passenger Movement Charge is a flat $55 fee which applies
to all passenger departures on international flights. As the
majority of international departures from Darwin International
Airport are short-haul South East Asian flights, this processing
charge constitutes a much higher percentage of the airfare
(generally more than 13 per cent) compared to flights departing
other Australian capitals.
An exemption from or reduction in the charge to more accurately
reflect the actual cost of providing the border control function,
especially for short haul international flights, would be more
appropriate in the Northern Territory’s context.
VISA REQUIREMENTS
AND CHARGES
The cost and ease of access to visitor visas contributes to the
competitiveness of the Northern Territory’s tourism market. While
many countries are able to use an Electronic Travel Authority to
apply for Australian visas at a cost of approximately $20, this
process has not available for many of the Territory’s northern
neighbours, including Indonesia, East Timor and China. These
countries have also been required to complete applications in
English and pay minimum costs of approximately $130 to obtain
a visa.
The White Paper on Developing Northern Australia announces
that from 2016 the Australian Government will extend capacity
for the electronically lodgement of visa applications to China and
India. Priority should be given to extending this process to the
Northern Territory’s other close neighbours to the north.
PRIORITY ACTIONS - STRATEGIC OBJECTIVE 4
ESTABLISHING POLICY, PLANNING AND REGULATORY SETTINGS THAT
SUPPORT AVIATION SECTOR GROWTH:
4.1
Priority Action
NT Government Agency
Establish Northern Territory Government air
Department of Corporate and
charter operator panel contracts for
Information Services
government funded travel, to provide cost
effective and administratively efficient service
options that meet established safety and
operational specifications.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
4.2
4.3
4.4
Establish a Northern Territory Aviation Industry
Reference Group as the mechanism for Northern
Territory Government engagement on aviation
issues.
Streamline governance arrangements to ensure
a coordinated approach to aviation within the
Northern Territory Government.
Continue to advocate for the Australian
Government to:
 consider the impact on the viability and
sustainability of existing Northern Territory
aviation services in any proposed
regulatory changes;
 reduce the cost and regulatory burden of
security, border control and processing
requirements on international air passengers
in the Northern Territory;
 establish policies that support the
development of northern Australia and its
aviation sector and associated industries;
 ensure that safety and security regulatory
requirements of airports and aerodromes
are tailored to the level of risk presented;
and
 provide firefighting and emergency rescue
services at Katherine Tindal Airport to allow
it to operate as an alternate destination for
Darwin International Airport at no cost to
the Northern Territory.
Department of Transport
Department of Transport
Department of the Chief Minister
/ Department of Transport /
Tourism NT
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Aviation Industry and Services Strategy 2020 - Discussion Draft
STRATEGY
IMPLEMENTATION
AND
GOVERNANCE
ACTION PLAN
The Strategy will be delivered through a five year Action Plan
that will be based on the strategic objectives and priority
actions identified in this Strategy.
Progress will be reported annually and the Action Plan will be
regularly reviewed in consultation with the Aviation Industry
Reference Group to ensure it responds to evolving aviation
sector needs.
The Strategy will be subject to a formal review in 2018.
ENGAGEMENT WITH INDUSTRY
An Aviation Industry Reference Group will be established by
the Department of Transport as the mechanism for engagement
on aviation issues and to oversee the implementation of this
Strategy.
Industry will come together with the Department on a six
monthly basis to review progress and work together on this
strategic agenda.
The Department of Transport, together with Tourism NT will
continue to work closely with airlines on route development and
cooperative marketing exercises.
NT GOVERNMENT COORDINATION
A Committee of Chief Executives has been established by the
Department of Transport to ensure a coordinated response to
aviation matters and to oversee the delivery of this Strategy.
Tourism NT, along with the Departments of the Chief Minister,
Business and Corporate and Information Services are
represented.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
ANNEXURE A
GOVERNMENT ROLE AND FUNCTIONS
NORTHERN TERRITORY GOVERNMENT
DEPARTMENT OF
TRANSPORT
Lead agency for aviation policy and strategy. Responsible for the
aviation industry; domestic, international and regional air services
development; and transport policy and planning.
Specific
responsibilities:
- lead whole-of-government response to emerging aviation
issues;
- manage relationships with industry through the proposed NT
Aviation Industry Reference Group and other processes;
- establish regular strategic meetings with key airlines, involving
Tourism NT and the Department of Business;
- coordinate meetings with airlines/airports and other key
stakeholders (including NT Government agencies) on emerging
aviation matters as required;
- monitor, contribute to and lobby for change to the national
aviation policy and regulatory agenda;
- in concert with Tourism NT and NT Airports, strengthen existing
and build new relationships with domestic and international
airlines;
- undertake commercial airline route development and
commercial aviation research and market analysis; and
- oversee maintenance of the NT’s 70 remote aerodromes.
TOURISM NT
Lead agency for marketing the Territory as a tourist destination.
Examines opportunities for the development of new and emerging
markets for tourism. Specific responsibilities:
- undertake tourism destination marketing and public relations
programs across domestic and international tourism markets;
- work with airlines, travel trade and strategic partners to
leverage and build destination awareness and tactical
marketing campaigns;
- undertake cooperative marketing with airlines based on
consumer demand for NT experiences;
- in concert with the Department of Transport and NT Airports,
identify opportunities for new and emerging markets for
tourism and present these to target airlines; and
- identify tourism product opportunities and communicate these to
the tourism industry.
DEPARTMENT OF
BUSINESS
Lead agency for business and industry development (including
tourism), industry and economic analysis, Asian engagement and
trade development, apprenticeships and traineeships, training and
employment programs, vocational education and training
administration, development of defence related industries,
strategic defence liaison and support for the defence community,
as these matters relate to aviation. Specific responsibilities include:
- work with the supply services businesses that support aviation
freight industry in the NT; and
- support training and development for the identified skilled
shortages in the aviation industry where there is an identified
apprenticeship pathway monitoring aviation industry
employment and workforce requirements.
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Aviation Industry and Services Strategy 2020 - Discussion Draft
DEPARTMENT OF THE
CHIEF MINISTER
Lead agency for coordination of government policy, the northern
Australia development agenda, economic development, social
policy, major projects and infrastructure, as these matters relate to
aviation.
DEPARTMENT OF
CORPORATE AND
INFORMATION
SERVICES
Responsible for reviewing public servant air travel and considering
strategies for cost efficiencies.
DEPARTMENT OF
LANDS, PLANNING AND
ENVIRONMENT
Aviation land/planning issues and initiatives.
AUSTRALIAN GOVERNMENT
DEPARTMENT OF
INFRASTRUCTURE AND
REGIONAL
DEVELOPMENT
Advises the Australian Government on the policy and regulatory
framework for Australian airports and the aviation industry,
manages the administration of the Government's interests in
privatised airports under the Airports Act 1996.
Delivers the Remote Air Service Subsidy (RASS) Scheme, Enroute
Charges Subsidy Scheme and the Remote Aerodromes Safety
Program.
The Office of Transport Security (OTS) within the Department is
the Australian Government's preventive security regulator for the
aviation and maritime sectors, and its primary adviser on transport
security.
The Aviation Security Branch provides policy advice to the
Australian Government on aviation security, sets standards for
aviation security measures, and tests, monitors and evaluates
compliance with those standards, policies and procedures
consistent with the Aviation Transport Security Act 2004 and the
Aviation Transport Security Regulations 2005.
CIVIL AVIATION SAFETY Established as an independent statutory authority. Conducts safety
regulation of civil air operations in Australia and the operation of
AUTHORITY
Australian aircraft overseas. Provides safety education and
training programmes, cooperates with the Australian Transport
Safety Bureau, and administers sections of Part IVA of the Civil
Aviation (Carriers' Liability) Act 1959.
The Civil Aviation Regulations 1988 and the Civil Aviation Safety
Regulations 1998, made under authority of the Civil Aviation Act,
provide for general regulatory controls for the safety of air
navigation.
AUSTRALIAN
TRANSPORT SAFETY
BUREAU
Governed by a Commission. Conducts independent investigations
of civil aviation accidents, incidents and safety deficiencies.
26