Funding for regional airports and support for regional air services will be increased as part of the federal government’s sweeping overhaul of the aviation industry.

The government’s long-awaited Aviation Whitepaper, containing 56 policies for the future of the industry, was released on Monday,  just weeks after Rex announced it was going into voluntary administration and following the collapse of fellow regional airline Bonza in April.

Releasing the paper, transport minister Catherine King said the future of Rex is yet to be determined, but the government is committed to maintaining regional services.

“The Australian Government will take action to maintain affordable and reliable air services into regional Australia, while ensuring the responsible use of taxpayers’ money,” she said.

“Beyond our actions in the context of the Rex administration, we are investing in regional aviation facilities, and the Aviation White Paper sets out a long term policy agenda to maintain reliable regional air services at accessible prices.”

Critical role of aviation

The White Paper acknowledges the critical role of aviation in supporting healthcare, education and freight in regional and remote communities, as well as the impact of the loss of Bonza and Rex.

It says the Remote Airstrip Upgrade Program will provide an additional $50 million over 3 years from 2024–25, while the Regional Airports Program will provide an additional $40 million in competitive grant funding over 3 years from 2024–25.

The government will also provide $500,000 funding per year from 2024–25 to the Remote Aerodrome Inspection Program (RAI) program, which provides inspection services for regional airports.

Meanwhile, the Productivity Commission will hold a review into regional airfares.

“The PC will be directed to investigate the determinants of regional airfares and advise on policy options to maintain appropriate levels of regional air connectivity at acceptable prices,” the paper says.

Australian councils had called for strong action from the federal government to ensure  regional communities remain connected and accessible after the collapse of Rex, saying it had left them up in the air.

Earlier this month, ALGA president Linda Scott said the assocation’s recent National State of the Assets report showed that around 12 per cent of airports and aerodromes operated by councils, worth a collective $3.6 billion, are in poor condition.

Aviation Industry Ombudsman

Other measures outlined in the White Paper include the establishment of an independent Aviation Industry Ombudsman, who will oversee a charter of consumer rights including actions airlines must take when flights are delayed or cancelled.

The ombudsman will also handle complaints, publish reports on airline and airport conduct, recommend further policy change to government and refer misconduct to the ACCC.

A consultation paper has been released with the White Paper to support the design of the Aviation Industry Ombuds Scheme. 

The government will require the Bureau of Infrastructure and Transport Research Economics (BITRE) to publish more data on performance and competition, while the newly independent Aircraft Noise Ombuds role will have the power to conduct independent investigations and make recommendations directly to government.

The Government will also implement measures to increase competition, and create new aviation-specific disability standards.

The ACCC will monitor the conduct of pricing negotiations between airlines and major airports – with the Productivity Commission to advise whether stronger regulation is required.