The need to have a comprehensive national strategy to guide the growth and expansion of Australia's aviation industry might seem self-evident, but it is not so glaringly apparent that any government has actually bothered to produce an overarching policy document despite the fact that there has been an unprecedented surge in the movement of people (and cargo) by air around the world in the past 20 years.
That growth has led to an aviation industry in Australia that employs about 50,000 people and contributes an estimated $6.8billion to gross domestic product figures forecast to continue growing rapidly in the next few years. Indeed, some studies indicate that airports and air services alone could contribute as much as $80billion to the economy in the next two decades despite some question marks about the future cost of aviation fuel.
With that prospect in mind, Transport Minister Anthony Albanese issued a paper this week identifying some of the challenges facing the aviation sector. He has called on the public and industry to contribute submissions for a review of the sector (to be completed by September), which will be used as the basis for a white paper to be completed by the middle of next year. Industry reaction to the announcement has been generally positive, if a little sceptical about the vague nature of Albanese's "key challenges" which include airport security, skills shortages, safety, airport planning, international competition, and climate change.
Many would argue that the problems facing the industry are already well documented and that, with greater deregulation, most could be dealt with relatively quickly. Indeed, they maintain that the oversight of safety is the only role that governments should be playing, and that if left to its own devices, the industry is more than capable of adapting to difficulties and evolving to survive the longer-term challenges of what is a rapidly globalising industry.
Given the national interest implications of air routes and international access to Australian ports, not to mention the importance of air freight to our export industries and overall economic performance, some government oversight of aviation and its offshoot industries will always be required. But this should be minimised where possible. The practice of propping up old established players, restricting the emergence of new competitors with excessive regulatory hurdles or blocking the entry of overseas competitors is no way to grow an aviation industry able to weather downturns or deal with external shocks such as terrorism or health-related threats.
By maintaining restrictions on the foreign ownership of Qantas, for example, government is hobbling the chances of it ever becoming a significant global player. Nor is government doing consumers and industry any favour by its continued refusal to open up trans-Pacific air routes to greater competition.
Many of the issues identified for discussion by Albanese are a result of the rapid growth in demand for aviation services worldwide a demand that few analysts predicted, and for which there are no quick or easy solutions. The shortage of pilots, maintenance engineers and air traffic controllers, for instance, is a problem which only the industry itself can address though with our ideal flying conditions, Australia is well placed to profit from allowing more overseas airlines to set up flying training colleges here. Likewise, concerns that the growth of airline traffic is exacerbating global warming, while possibly legitimate, can really only be addressed by aircraft and engine manufacturers, though there is a role for governments in ensuring (either through fuel levies or a carbon tax scheme) that the cost of airline travel reflects its true greenhouse gas emitting potential.
The problem of aviation security can be traced back to one single event: 9/11 and the subsequent War on Terror, and while airlines and airports now have the means and the technology to guard against any future outrage, arguments about who should pay mean that security measures at Australian airports are not as good as they could be. While passengers are all required to pass through metal detectors, for example, checks to ensure that no one carries explosives on board planes are relatively infrequent. A hijacked plane might be every airline's worst nightmare, but it also represents a serious national security threat one reason why governments should be contributing more to the provision of security at airports.
Otherwise, there is little reason for governments to be dictating aviation policy. Despite charges of price-gouging and untrammelled expansion of non-aviation activities, the privatisation of our major airports has in fact improved efficiencies and significantly boosted aviation activity.
A coordinated national aviation policy is long overdue. With the right direction and emphasis, the white paper should lead to a more cohesive and sustainable industry, but Albanese needs to ensure it is not weighed down by the dead hand of bureaucracy.
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