Supreme Court Countdown

Paul Phelan , 30 March 2009 – 7:50 pm9 Comments

Time to get involved

Opinion – Paul Phelan

Why is aviationavertiser.com.au so persistent in supporting Ray Clamback and Aminta Hennessey in their David-and–Goliath tussle with Bankstown Airport Limited? We hope that when you’ve probed this issue you’ll want to support them too, as many have already done. It’s an issue that may impact on you every bit as harshly as BAL seems to hope it will on Clamback & Hennessey.

How often have you heard: “You’d have to be crazy to get into general aviation in this country?”

But nobody we know is crazy enough to punt $1 million on a business enterprise without doing some basic groundwork.

Certainly not Ray and Aminta, who had managed their business successfully for almost as long as anybody can remember, and every significant business decision they’d made had been based on a business plan.

They weren’t crazy when they decided to invest in building a hangar to support their business at Bankstown, either. They had consulted with the Federal Airports Corporation (at that time the government’s airport management agency) before making the decision. As the government agency representing the airport’s owners, the FAC not only told them it could be counted on not only to renew their existing lease on expiry; but also that their subsequent lease would be rolled over as well, at comparable rates, subject only to their continuing to be good tenants. Those assurances gave them confidence to go ahead with their project.

Encouraged by the roll-over policy almost every tenant at almost every major GA airport in Australia had made similar investments in non-portable assets,

Then along comes airport privatisation, with the government granting long term head-leases to non-aviation investors, with assurances that privatisation would provide new and improved airport facilities and a better basis on which to develop your aviation business.

But what followed was an epidemic of unregulated and uncontrolled greed, with rentals and service charges exploding, new charges popping up everywhere, important and safety-relevant aviation assets demolished to make room for non-aviation commerce, and ample evidence that some head-lease holders would only be happy when general aviation curled up its toes and died.

Clamback & Hennessey are now taking BAL to court over the situation that has allowed BAL to seize the asset they had already paid for, and then to rent it back to them at any price BAL cares to name. Their argument will be that it is in the terms of the head lease that BAL has inherited the obligations which the FAC acknowledged and honoured. There is absolutely no interest in this appalling situation either from the federal government or from the opposition which was the government when the trap was set. And there’s none from the news media either, apparently because there are plenty more colourful daylight robberies to report on.

In a previous article we have already highlighted the absolute disinterest of the Australian Consumer Competition Commission, despite the rhetoric in its mission statements and elsewhere. There is simply no agency which has the will or the ability to take control over the ongoing abuse of monopolies.

But what other airport tenants are now realising is that if this case is lost many of them are exposed to the same risk – not only at Bankstown but also at most other GAAP airports. For that reason the need to support Clamback & Hennessey can’t be overestimated. Just as CASA has squandered vast amounts of public money trying to drive people who can’t afford endless court action towards bankruptcy, BAL can be expected to spare no expense bringing in the big legal guns to defend its position.

Already, over $16,000 has been pledged by general aviation supporters, however, a Supreme Court action of this nature will require further funding (possibly over $140,000) outside of the capacities of most small general aviation business owners.

Aviationadvertiser.com.au has pledged its support and we are committed to assisting Clamback & Hennessy. We urge every airport tenant who is potentially affected, to contribute.

If Clamback & Hennessey lose their business you might be next.

2 November 2008 -- Federal Government Sellout

| 9 Comments »

Jay Lennox Layfield says:

1 April 2009 at 8:43 am

Well said Aminta… we need to fight this if we want any sort of fair go and opportunity for new pilots like myself as well as the institutions we rely upon.
Chris Nour says:

4 April 2009 at 3:31 pm

Hi guys i am a new student a Clamback and Henessy and am currently doing my ppl license and one day doing my cpl. Now we travel overseas alot and whenever i meet an Australian pilot i ask him where he did his license and 80% of them know Clamback and Hennessy and 45% have done it their.(i am really good at maths) now imagine a world without bankstown airports, there won’t be many pilots becoming CP and imagine a world without people with CP, there won’t be travel, now imagine a world without travel, well use your imaginations. Keep Bankstown airport and keep it good and be fair. Don’t make it just about the money big guys. Please keep General Aviation alive.

Clamback and Hennessy for ever!!!!!
Peter Flanagan says:

16 April 2009 at 5:36 pm

Well done Aminta and Ray. I keep hoping that the government will wake up to this situation. As usual I find myself being very disappointed with Australian politicians. Their indifference to the plight of small business and the difficulties they face is truly disturbing.
Mick English says:

24 April 2009 at 3:58 pm

All the best.
People don’t make a big living out of GA and often a lifetime of work is tied up in the business.
Dave says:

27 April 2009 at 3:44 pm

Another example of egregious “bankster” theft. Tell me, fellow Australians, just when did we sign the paper that turned over our roads, rail and airports to private operators whose sole and absolute focus is to maximise their profits at the expense of all other concerns? All the while, piling the assets into offshore entities (Vanuatu, Caymans etc) out of the reach of the tax-man, while the ordinary Ausralian continues to get slugged at every turn.

But of course, where does the buck stop when the banks bets turn sour and their capital cushions are shown to be manifestly inadequate – as banks in the US and UK have experienced? Why, of course, they turn to us, the taxpayer, to provide the subsidy of last resort.

I have written repeatedly to government ministers on this point. They are “captured” by the big end of town that pours measly peanuts into their campaign coffers. They are not interested in recognising the situation for the egregious theft and mortgage of a nation that it most certainly is.

These actions are reprehensible and I can only wish the Clamback & Hennessy’s “David” luck in the fight against the banking and property syndicate backed Goliath that is BAL.
yanni hatzidis says:

29 April 2009 at 2:58 pm

I was fortunate enough to gain my PPL via training at Clamback and Hennessy and know first hand that Aminta, Ray and the rest of the crew there are great people just trying to run a legitimate business in an already tough environment and market.
Now enter a government which is supposed to regulate and protect small/medium business owners and integral industries such as general aviation who then proceed to sell off key public infrastructure vital to so many people and businesses with no regulation to protect those involved, no regard of the consequences of their actions, no regard to the safety and growth of general aviation and no regard to the future on so many differing levels.
Unless there is an election in the vicinity, the almighty dollar sways the politicians every time. You don’t have to be Einstein to realise there isn’t a pilot amongst the geniuses who came up with this debacle and discussion and debate with those to be affected by these changes would have been way to sensible.
Let’s face it, relevant and legitimate reasons may have been raised that just may have jeopardised this governmental coffers filler.
God knows how many other good and honest people involved with GA related aerodromes are being systematically and unfairly mistreated and pushed aside.
Looking at the situation so many unfortunately find themselves in, is it any wonder that politicians have the reputation they have?
Come on guys… Get out of your alcohol tax free parliamentary bars, get into your publicly funded limousines and get down to talk to the affected people like Aminta who will open your eyes to the reality of theirs and others situations and the damage already done.
It’s bad, but not too late to get some kind of reasonable outcome…
Peter Ryan says:

3 May 2009 at 3:59 am

I’m staggered at the Federal, State and local Government’s attitudes to general aviation.

They are all supposedly trying to create jobs in these tough times, yet they are systematically destroying a high tech industry which consistently keeps many thousands in work throughout Australia.
Greg says:

4 May 2009 at 3:12 pm

Whilst the grab at the hangar was propably not warranted, the rental increases should have been expected sometime.
I’m involved withan organsation also on YSBK (and has been for over 20 years) and we have always paid market rent at the airport. It was somethin we budgeted for all along.
I can sympathise with the asset (hangar) loss, but not the failure to budget for market rentals.
Stan van de Wiel says:

18 May 2009 at 10:50 pm

what most of the supporters appear to be missing is the fact that the Government sold off private assets which it did not own. The sell-off plan was initiated by the Keating Government and followed through by Howard/Anderson. The airport act allows for the Lessee of the various facilities to get a “reasonable” return on their investment, this does not imply “market” value for rents because with the “aviation use” limitations there can be no rational comparison. At YMMB most tenants pay a different rate ??? but lease conditions forbid them discussing the actual amounts.

At the launch of the Moorabbin Airport privatisation in 1998 attended by Simon Crean (Local Member) the newly appointed Airport Manager Phil McConnell, for M.A.C. was keen to point out to the multitude that “all the company (MAC) had to do was keep one runway active to meet the terms of the lease” in otherwords f*&^k the operators.

If our Parliamentarians and their Masters the Bureaucrats had any foresight they would have subdivided and sold off the surplus areas and offered the Aviation Tenants freehold to their plots. The excessive profits would have gone to the Commonwealth (taxpayers)

Representation to the ACCC is useless, what could be the reason $$$