Airport users blame departmental inertia, indifference, and in some cases negligence, along with political don’t-want-to-know-about-it attitudes, to the plight of these airports.

Hearing aviation’s tales of woe from around the nation, we began documenting some of the worst examples, expanded on them in a brief analysis, and then lent our resources to coordinate an approach to Minister Albanese. Small groups or individuals at five selected locations then quickly collected over 1,000 signatures to a letter to the Minister calling on him to use existing laws and contracts to reverse the rot.

The letter was accompanied by a 24-page study of the airports situation titled Australian airport privatisation: Who benefits? The study, available for download from this web site, details examples of the most common abuses. These include blatant breaches of contract by local governments entrusted with their airports, unlawful sale and misuse of airport land in defiance of their contracts with the Commonwealth, abuses of monopoly in pricing policies, and the destruction of aviation infrastructure both on airports transferred under the Aerodrome Local Ownership Plan and separately the sale of GAAP airports.

The study also highlights the way in which departmental transport bureaucrats have consistently ignored their responsibilities to ensure compliance with the ALOP deeds of transfer and the head leases held by GAAP airport operators.

A copy of Australian airport privatisation: Who benefits? has been sent to every federal parliamentarian this week. In case our representatives are too preoccupied with electoral matters to read it through, industry readers would do well to take a look at the document and write to their own MPs on this vital issue.

Download:  Letter to Minister Albanese

Download:  Australian Airport Privatisation:  Who Benefits?

We invite your thoughts and comments regarding our Letter to Minister Albanese and our Report.
Please use the comments service at the bottom of this article.

Was Little Rock’s ground-braking plan inspired by the Australian government’s seizure and sale of other people’s hangars? The aviators of Little Rock, Arkansas are left wondering who to throw little rocks at. The following article from the USA’s AOPA journal shows how Australia’s leadership in promoting government-enabled robbery has quickly spread to foreign shores.

Rule change would leave hangar owners out in the cold

By Sarah Brown

Give up the airport the hangar you built and then rent it back for a higher rate, or move it at your own expense: That’s the choice leaseholders at the North Little Rock Municipal Airport could be faced with as their leases expire if an airport commission proposal goes forward.

The airport commission has proposed changing the rules for long-term leaseholders by reverting ownership of hangars to the airport at the end of their lease term. Under new lease terms, tenants who built (and currently own) hangars on leased land could either turn ownership of the structures over to the airport and renew the lease—at a much higher rental rate—or tear down the hangar at their own expense. AOPA wrote to the commission June 7 to oppose the proposal.

“While many general aviation airports across the United States do have reversionary provisions in their land leases, it is extraordinary for an airport to modify their lease terms to add a reversionary provision at renewal after the lessee has invested in developing the leasehold,” wrote AOPA Vice President of Airport Advocacy Bill Dunn. “The lessee who entered into the original lease with the airport entered into that agreement and made his investment under one set of rules, which justified the expenditure. Adding reversion provisions ‘after the fact’ that changes the rules to the detriment of the lessee simply isn’t reasonable and could not have been foreseen as the investment was being made.”

When tenants signed their initial leases, they had no indication that they could be sent away empty-handed at the end of the lease. AOPA told the commission it should consider alternatives to springing this sudden change on leaseholders who have made significant investments in the property. If the commission pushes forward in adding reversionary provisions to leases, it should only consider them for new leases, not renewal of existing leases, Dunn said.

Prime creditor CBA (Commonwealth Bank of Australia) has appointed liquidation practitioners Korda Mentha as Receivers and Managers for the debt-laden BAC Devco Pty Limited, the company formed to manage property development at the Airport.

Bankstown in busier times

Bankstown airport tenants say that about half the land covered by the Bankstown Airport Ltd (BAL) head lease was sub-leased to BAC Devco, a newly-formed associate company, on or about the same day the Commonwealth lease to BAL was finalised; and that at that time Leightons, Mirvac and the CBA were the major shareholders.

The sell-off of sub-leases on airport land involved some 28 commercial property sites on the airport, a handful of which (including Toll) are now either completed and occupied, with the remainder currently undergoing development or awaiting preparation for sub-lease to commercial tenants. The sites vary in size from less than half a hectare to 10 ha.

The move is expected to create a shambles of planned, finished or half-finished commercial real estate projects, many of which have already encroached on basic airport infrastructure. One runway has been de-commissioned, another is partly closed along with an adjoining taxiway, and although the resulting new sites remain unoccupied there have been grave reductions in available aviation movement space including runways taxiways, apron areas, and land available for future aviation project development.

Current property ownership on all three Sydney basin secondary airports is confused by a tangle of contradictory assertions by various stakeholders, at least some of which are clearly outdated.

Leighton Properties’ web site says the company holds a 33.3% stake in the leasehold development land at Bankstown airport, a 25% interest in the leasehold land at Camden, and a 50% stake in freehold development land at Hoxton Park airport. Hoxton Park was allowed to be shut down as part of a deal in which a single company was permitted to take over all three airports, contrary to provisions of the enabling Airports Act 1996.

But Mirvac’s site currently claims: “Hoxton Park Airport is wholly owned by Mirvac Developments Pty Limited and is managed and operated by Bankstown Airport Limited.”

Chairing the creditors’ meeting, co-administrator Mr Christopher Hill of PPB Australia said he understood that the only common shareholder to BAC Devco Pty Limited and Bankstown Airport Pty Limited was Westscheme Pty Limited, which apparently no Bankstown aviation tenant has heard of.

The first meeting of creditors was attended by just two organisations.

Civil engineering, planning and surveying firm Craig & Rhodes is claiming over $30,000 for work associated with the commercial sub-lease development at Bankstown, while the Australian Aviation Museum Bankstown Inc says it is owed $2.5 m, part of a planned $3.6m promised for the relocation of its facility from Bankstown to Camden as part of a deal with the now defunct BAC Devco to clear its Bankstown leas for other development.

BAC Devco directors had initially approached Mr Hill last November regarding placement of the company into voluntary administration, however that was not pursued when a sale program was put in place. But when the program failed and CBA withdrew funding on May 13, the company appointed Mr Hill and Mr Brett Lord as joint and several administrators.

The following day David Winterbottom and Martin Madden of Korda Mentha were appointed receivers and managers by CBA.

The administrators are investigating the company and will provide a detailed report to the second creditors’ meeting. That meeting will also be asked to pass a resolution on whether the company executes a deed of company agreement, or be wound up and liquidators appointed. However, said the Chairman: “Due to the appointment of receivers and managers to the company, the administrators would have limited involvement in the administration of the company.”

Creditors were told there would be no returns to them unless the sale of properties recovered funds in excess of what is owed to CBA, but total debt known to date is approximately $56 million.

Two Bankstown tenants were available for un-attributable comment:

“I wonder if government will get a message from this outcome, of its incompetence in managing airport privatisation. Probably not.” and:

“I don’t see any good news for airport tenants in this shambles, but maybe the whole thing might deter land sharks from messing around with things they don’t understand – especially airports and the people and businesses whose lives revolve around them.”

Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, confirmed that almost $1.1million will be provided to Wagga City Council as part of the Regional and Local Community Infrastructure Program for the ILS installation.

Airservices Australia, Wagga Wagga City Council and Regional Express have entered a joint agreement to purchase, install and operate an Instrument Landing System (ILS) at Wagga Airport with the assistance of a federal government grant announced today.

Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, confirmed that almost $1.1million will be provided to Wagga City Council as part of the Regional and Local Community Infrastructure Program for the installation of the ILS.

Total investment in the system is expected to be approximately $1.6 million, and the City Council, Airservices and Regional Express have agreed to share the additional costs associated with the commissioning, installation and ongoing maintenance of the system, which is expected to be operational later this year pending approvals and successful testing.

The new installation is expected to pave the way for further growth and development of a Wagga-based pilot training and aviation technical training hub, expected to boost the regional economy through job creation and the multiplier effect of additional expenditure in aviation infrastructure.

The joint investment will foster the development of the airport as a national centre of aviation significance particularly in education and training. Wagga Wagga Mayor, Councillor Kerry Pascoe, said: “This is a commercially smart and forward thinking initiative to build on generous federal government assistance for a project with benefits reaching beyond the region’s economy to the regular travellers passing through the airport.

“The agreement builds on the fact that Council, Rex and Airservices are already working closely together to develop training opportunities and a vibrant regional aviation community based around Wagga Wagga.”

Airservices CEO Greg Russell said: “Airservices has made a major commitment to aviation in regional Australia through the establishment of our technical training school at TAFE NSW’s Riverina Institute.

“With an active ILS at the airport, our technical trainees will be able to receive hands-on experience without leaving Wagga Wagga, enhancing the value of their training.”

Regional Express Managing Director Jim Davis said the ILS would significantly strengthen the airport’s pilot training capability.

“It will allow us to conduct ILS training in Wagga Wagga rather than flying to other airports. It will considerably enhance the pilot training capability of Wagga Wagga Airport and will be a key ingredient to the planned expansion of the pilot academy,” Mr Davis said.

Cr Pascoe also said the commitment was a major boost for the region: “Reliable air services are vital for business, pleasure and medical travel. The new ILS will also allow greater reliability for regional airlines and local operators using the airport and boost the overall efficiency and safety of the airport, particularly in marginal weather conditions.”

The ILS is a precision approach radio navigation aid and the current international standard for providing ground based approach guidance to an airport’s runways.

Total investment in the ILS is expected to be approximately $1.6 million, and the City Council, Airservices and Regional Express have agreed to share the additional costs associated with the commissioning, installation and ongoing maintenance of the system, which is expected to be operational later this year pending approvals and successful testing.

The new installation is expected to pave the way for further growth and development of a Wagga-based pilot training and aviation technical training hub, expected to boost the regional economy through job creation and the multiplier effect of additional expenditure in aviation infrastructure.

The joint investment will foster the development of the airport as a national centre of aviation significance particularly in education and training. Wagga Wagga Mayor, Councillor Kerry Pascoe, said: “This is a commercially smart and forward thinking initiative to build on generous federal government assistance for a project with benefits reaching beyond the region’s economy to the regular travellers passing through the airport.

“The agreement builds on the fact that Council, Rex and Airservices are already working closely together to develop training opportunities and a vibrant regional aviation community based around Wagga Wagga.”

Airservices CEO Greg Russell said: “Airservices has made a major commitment to aviation in regional Australia through the establishment of our technical training school at TAFE NSW’s Riverina Institute.

“With an active ILS at the airport, our technical trainees will be able to receive hands-on experience without leaving Wagga Wagga, enhancing the value of their training.”

Regional Express Managing Director Jim Davis said the ILS would significantly strengthen the airport’s pilot training capability.

“It will allow us to conduct ILS training in Wagga Wagga rather than flying to other airports. It will considerably enhance the pilot training capability of Wagga Wagga Airport and will be a key ingredient to the planned expansion of the pilot academy,” Mr Davis said.

Cr Pascoe also said the commitment was a major boost for the region: “Reliable air services are vital for business, pleasure and medical travel. The new ILS will also allow greater reliability for regional airlines and local operators using the airport and boost the overall efficiency and safety of the airport, particularly in marginal weather conditions.”

The ILS is a precision approach radio navigation aid and the current international standard for providing ground based approach guidance to an airport’s runways. Although it will eventually be replaced by satellite-based systems, it is still in use at most major airports in the world, although new ILS installations are not common, and few regional airports are ILS-equipped.

All over Australia, formerly government-owned airports are now under threat of closure at worst, or reductions to their functionality and safety, by the actions of their new owners and the apparent inaction of local, state and federal governments entrusted with their future security, safety and utility. But airport user groups are now fighting back.

Below is a letter from Caloundra airport users to elected members of the Sunshine Coast Regional Council, explaining their legal, moral and community obligations. Despite contracts signed between local and federal governments in the 1992 Aerodrome Local Ownership Plan, various local governments around Australia are busily working with developers to convert airports that are a  functional and essential components of the nation’s transport infrastructure, into residential or commercial real estate. Inaction by the federal government is not helping, as this letter makes clear.

A detailed “Bella Vista” development application by Stockland, which came with a half million dollar application fee, actually uses the words: “When the Caloundra aerodrome is closed.” The council at first told aviation businesses that leases would not be renewed after December 2014 and the aerodrome would be “relocated” but there has been no Council resolution to close the airport and no announced revision of council policy, so there is no certainty of tenure beyond the end of 2014. There is therefore no possibility of financing any development in the next four years, and certainly none beyond that either.

And on GAAP airfields the situation is at least as bad and arguably much worse.

The Minister and his Department already possess the tools to bring this situation into line. All that’s now needed is the will to meet their obligations.

Caloundra is only one example, but a good one. We are aware of dozens of other airports whose head-lease owners appear to have plans that would contravene the intent of their ALOP contracts or the Airport Sales Act 1996, and we are assembling documentation wherever it is available.

AviationAdvertiser.com.au is now aiding groups and individuals affected by either inertia or malignant intent, in a campaign to return affected aerodromes to a condition in which their users’ businesses will be viable. The campaign will deal only in documented facts, and we invite your input to pdphelan@aviationadvertiser.com.au.

Here’s what the Caloundra group has to say:

LETTER TO SUNSHINE COAST COUNCILORS FROM CALOUNDRA AIRPORT USERS GROUP

Dear Mayor Bob Abbot

Firstly thank you for taking the time to visit the Caloundra Aerodrome. We enjoyed your visit and hope it was rewarding and enlightening.

After reading the Bellvista 2 Development Application 2010/61-00001 from Stocklands to the SCRC I feel compelled to write to you with the following comments as I now understand the pressure being put on you by both Stocklands and your own planning department.

The application repeatedly refers to “when Caloundra Aerodrome closes” and “when operations cease at Caloundra Aerodrome”. This infers that Stockland has already been provided with assurances to which at the present time, they are not entitled. The resolution back in I believe 2006 was that ” Leases will not be renewed past December 31^st 2014 and the Aerodrome will be relocated” as that is now on hold by the State Government there is no CCC or SCRC resolution to close Caloundra Aerodrome.

Regardless of that it is fact that the Aerodrome Local Ownership Plan Deed of Trust signed by the Caloundra City Council 29th June 1992 clearly states in Clause 2 (h) (i) quote shall take such action as is within its power to create land-use zoning around the aerodrome which will prevent residential and other incompatible development in areas which are, or which may be, adversely affected by aircraft noise.

This clause of the Deed alone must make Bellvista and therefore Bellvista 2 unallowable. Although we are aware of various statements in the past originating from both Council staff and Councilor claiming the Deed “is not worth the paper it is printed on”. The undertakings provided in the Deed represent contractual obligations to which Council is bound. The ruling given by Corrs Chambers and Westgarth in 2005 was specific to one clause only and is defined by the instructions given by council staff. “ We are instructed to advise whether an agreement between the Caloundra City Council and the Commonwealth of Australia with respect to the Caloundra Aerodrome might provide any impediment to the Council closing the aerodrome.”

It is very clear that the intent of the Department which prepared the Deeds in 1992 anticipated the future actions which are now being attempted by SCRC and other local government agencies responsible for aerodromes under the Aerodrome Local Ownership plan ( ALOP).

Clause 2 (L) (M) and especially (P) will all be in breach by the Sunshine Coast Regional Council if it indeed votes to close the aerodrome and hand it over to developers.

(P) shall not, without the consent in writing of the Secretary, close the aerodrome or sell, lease or otherwise dispose of or part with the possession of the land comprised in the aerodrome other than a disposal by way of lease or license under the provisions of clause 2(J), 2(K), 2(L), and 2(M) thereof;

Correspondence attached dates from 2005 to 2010 and clearly indicates neither Caloundra City Council nor the Sunshine Coast Regional Council have at any time sought approval from the Secretary of the Commonwealth Department of Transport and Infrastructure.

“The Aviation White Paper” published by The Commonwealth of Australia in 2009 would indicate to all who read it that approval to close Caloundra Aerodrome will not be forthcoming.

It is a very large document and I urge you to read it, especially Chapter 9 in regards to Airports. www.infrastructure.gov.au. Here are some relevant extracts.

The Government’s aim is to give industry the certainty and incentive to plan and invest for the long term, to maintain and improve our excellent aviation safety record, and to give clear commitments to travellers and airport users, and the communities affected by aviation activity.

Continual investment in and upgrade of the aviation infrastructure at Australia’s airports is needed to continue to drive Australia’s productivity and economic performance. In order to achieve this, airports need to be afforded the best possible planning and consultative framework–to allow for the development of their core aviation business, while encouraging their integration with the communities that neighbor them.

The discussion paper Safeguards for airports and the communities around them signaled that the Australian Government will work cooperatively with the states, territories and local planning authorities to develop a risk-based national safeguarding framework. The framework will ensure an appropriate balance is maintained between the social, economic and environmental needs of the community and the effective use of airport sites. Maintenance of such a balance would surely begin with the enforcement by Government of existing relevant contracts and legislation.

The proposed Planning Coordination Forums for the primary capital city airports will play an important role in the application of a safeguarding framework to off-airport planning. However, safeguarding issues apply not only at the large federal airports, but in respect of large and small airports nationwide.

Dave Miles

Caloundra Airport Industry/Users Group

Business Owner

Lease Holder

0412396740

P.O. Box 84

Moffat Beach 4551 Qld

Hawaiian Airlines has begun its long-range strategic fleet renewal and expansion program with the delivery of the first of up to 27 new, wide-body Airbus aircraft that will be integrated into its fleet over the next ten years.

Hawaiian took possession of its first 294-seat Airbus A330-200 in a formal acceptance ceremony at the Airbus factory in Toulouse, France.

Mark Dunkerley, Hawaiian’s president and CEO, commented, “Today’s ceremony marks an important moment in the history of Hawaiian Airlines as we pursue our plans for growth and expansion.

These new Airbus aircraft will allow us to operate more efficiently and over greater distances, while also setting a new standard for passenger comfort and convenience.”

John Leahy, Airbus chief operating officer – customers said: “Hawaiian has a great reputation for service among its customers and our industry overall – and bringing Airbus wide-bodies into its fleet will serve to enhance that status. We welcome the opportunity to be an instrumental part of the airline’s mission to better both economics and passenger appeal.”

In keeping with Hawaiian Airlines’ heritage, today’s ceremony showcased Hawaii’s culture and traditions, with the performing of Hawaiian music and hula, the presentation of a special Hawaiian ‘oli (chant) written for the occasion, and a traditional Hawaiian blessing.

More than 200 Hawaiian Airlines employees and their guests made the 7,760 miles trip to Toulouse to witness what Hawaiian describes as “a momentous event for the company.”

The new A330 is scheduled to arrive at Honolulu International Airport on the morning of May 3, after which the aircraft and its flight crews will begin the training needed to start service on the Honolulu-Los Angeles route in early June.

Hawaiian plans to have up to 27 new Airbus aircraft as part of its fleet within ten years. The carrier is leasing the three A330s that are joining its fleet this year, but has signed a purchase agreement with Airbus to acquire seven A330s (starting in 2011) and six A350XWB-800 (Extra Wide-Body) aircraft (starting in 2017), as well as purchase rights for an additional five A330s and six A350s.

Although the growing Airbus fleet is expected gradually to replace the carrier’s 18 Boeing 767-300 ER aircraft, the airline today also announced the completion of another major fleet programme, which increases the fuel efficiency of eight of its current Boeing 767 aircraft.

But meanwhile Hawaiian has installed fuel-saving “blended winglets” on the long haul Boeing 767s, slashing fuel consumption and carbon dioxide emissions while also enhancing operating performance.

On some flights, the modifications enable Hawaiian’s Boeing 767s to carry between 10,000 and 15,000 pounds in extra payload or to increase their flying range, as well as reducing engine maintenance costs.

The winglets, which  reduce airflow drag from the wings’ are now cutting fuel burn on each of the modified aircraft by approximately four per cent, and reducing annual carbon dioxide emissions by an estimated 2,250 tons per aircraft.

On some flights, the modifications enable Hawaiian’s Boeing 767s to carry between 10,000 and 15,000 pounds in extra payload or to increase their flying range, as well as reducing engine maintenance costs.

Mr Dunkerley said: “Our decision to acquire new Airbus aircraft over the next decade is the biggest investment in growth and improved efficiency in the history of Hawaiian Airlines.  The modification of eight of our existing long-haul Boeing 767s is a parallel initiative which immediately enables us to achieve even greater efficiency and environmental benefits on our trans-Pacific flights to destinations including US mainland, Australia and The Philippines.”

Tenants of Caloundra airport are gearing up for another fight in defence of their airport, fearing that some Sunshine Coast Regional Councillors (SCRC) are getting too close to the land developers who are pressing for aerodrome closure.

“Recent comments in the media from Councillor Anna Grosskreutz such as: ‘councillors needed to have space before any decision could be made’ and references to ‘helicopters behaving badly’ clearly indicate that she is not a supporter of keeping the airport and is rather trying to undermine our efforts using the aircraft noise issue,” says airport tenant group representative David Miles.

“The fact is that noise complaint statistics confirm there is only a very small number of individuals who complain regularly.”

The looming dispute surrounds the 1992 Deed of Trust signed by the (then) Caloundra City Council before it was amalgamated into the huge local government body that covers the entire Sunshine Coast.

Mr. Miles and his supporters believe the Caloundra Council and the Supreme Court were in breach of the Deed of Trust’s Para H (i) requiring it to ‘create land use zoning around the aerodrome which will prevent residential and other incompatible development in areas which are, or which may be, adversely affected by aircraft noise.’

“Sunshine Coast Regional Council has inherited the responsibility to uphold the content of the Deed of Trust and if they approve Belle Vista 2 [the current development proposal] they will again be in breach of the Deed,” said Mr. Miles, referring to the current development proposal.

“There is also a positive letter today from urging Mayor Bob Abbott to keep his election promise to “save the airport if he had the power” Well he now has that power, he’s an environmentalist, and I think if he really understood the issues he would be supportive of the airport.

“A Caloundra Council decision that was made in (about) 2007 very clearly stated that the Council supported closure of the aerodrome “providing a replacement aerodrome is provided for the existing users to relocate. Now that the State Government has ceased investigating relocation that should mean the 2007 decision defaults to not supporting closure of the aerodrome,” says Mr. Miles.

“Three weeks ago at a meeting at Council, Councillor Grosskreutz confirmed that was the decision on the books. At that meeting she claimed no knowledge of the Deed of Trust, even suggesting a cover up. Her position now, only weeks later, appears to be: “It’s (The Deed of Trust) is not worth the paper it is printed on.”

Those words have been repeatedly used by councilors seeking closure of the airport, including former Mayor Don Aldis.

However recent correspondence dated March 2010, from the Commonwealth Department of Infrastructure and Transport, indicates clearly that the Commonwealth recognises the existence of the Deed and of SCRC’s obligations.

The group is also alarmed by the apparent support of town planner Warren Bunker who “appears to be pro airport closure, and is the man whose idea it was in the first place.”

Mr Miles understands that council’s first meeting on the subject is next Tuesday (April 20) with the three people briefing council being Councillor Anna Grosskreutz, Town Planner Warren Bunker, and Deputy Mayor Tim Dwyer.

Attention anyone conducting retail business on GAAP or other Commonwealth-owned airports:

Airport tenant Bema Gold (Australia) Pty Ltd yesterday was before the Victorian Civil Administration Tribunal (VCAT) seeking relief against forfeiture of its premises at Moorabbin Airport. It sought a declaration that the premises are retail premises within the meaning in the Retail Leases Act 2003. And they had a win.

The Act was designed to protect business property lessees from excessive and unjustifiable rentals and other conditions demanded of retail tenants by some shopping centres. Commonwealth head-lease holders have long argued immunity from various provisions including lease disputes and planning permissions on the basis that they are operating on Commonwealth property.

The matter was heard yesterday (Thursday, 11 March 2010) and determined by the Tribunal before Deputy President Michael Macnamara.

In the Act, Retail Premises means: “premises, not including any area intended for use as a residence, that under the terms of the lease relating to the premises are used, or are to be used, wholly or predominantly for-

(a).  the sale or hire of goods by retail or the retail provision of services……”.

Bema was able to demonstrate to the satisfaction of the Tribunal that “hangarage” and its use of the premises for hangarage constituted the retail provision of services, and therefore the premises came within the meaning of the Retail Leases Act.

The implications are that the provisions and protection provided by the Act cover the leasing of hangarage and other services such as aircraft maintenance, charter and training if they are provided as retail provision of services.

We spoke with Barry Moshel Solicitor from Caulfield, Vic, who acted for the successful applicant Bema Gold in the matter. He said that his client was delighted as the implications of the decision are that protection for the tenant is now provided under the Act.

The protections under the Act includes the benefit of the “unconscionable conduct” provisions under the Act which protect the tenant against grossly unfair conduct by landlords, appointment of a specialist retail valuer when the lease goes to market (for example upon exercise of option for a further term) and the assignment provisions where the landlord cannot refuse an assignment of lease unless under certain situations.

The VCAT determination has not been published as yet. There will have to be  implications and application of this decision for the many other tenants in the various airports in Victoria who may be carrying on and providing retail services where the Retail Leases Act may well apply.

The decision is expected to bring considerable relief to Victorian airport tenants. Lessees at interstate airports who are similarly affected, would be well advised to identify whether parallel State legislation exists, especially if their leases specifically allow for hangarage or other retail activities.

Sydney Airport has again come fifth in the Australian Consumer Competition’s (ACCC) annual assessment of airport performance, despite a consultant’s customer survey earlier this week that revealed it was marginally increasing its popularity with passengers.

“Due to concerns that they might use their monopoly position in aeronautical services to increase profits at the expense of airlines and passengers, the ACCC monitors Adelaide, Brisbane, Melbourne (Tullamarine), Perth and Sydney (Kingsford Smith) airports,” says the Commission, which however does not monitor secondary, regional or rural airports.

Reports are based on indicators including quality of service, prices, costs, profits and investment levels: “While the indicators do not provide conclusive evidence as to whether the airports have been earning monopoly rents, trends in those indicators over time can identify those airports whose performance may require greater scrutiny.” Says the ACCC.

Despite the current economic slowdown, around 93.3 million passengers passed through the five major airports in 2008–09, an increase of just over 1 per cent from the previous period. Sydney Airport was the only monitored airport to report an overall decrease in passenger throughput.

ACCC chairman Graeme Samuel, said: “This year’s report has found the performance of Sydney Airport to be of greatest concern. The indications are that Sydney Airport has increased profits by permitting service quality to fall below that which the airlines reasonably expect.”

“Airport users, including passengers and airlines, rated Sydney Airport last amongst the monitored airports for the fourth consecutive year and it appears that investment in the international terminal has been slow.  And while Sydney Airport was the only airport to report a fall in passenger numbers, its revenue and profit margins still increased. Sydney Airport also recorded the highest average prices at $13.63 per passenger, compared to the lowest of $7.96 at Melbourne Airport.”

Airports typically charge airlines on a per passenger basis for using their facilities, and charges are often set in advance for several years at a time, as a result of medium-term contracts with air carriers.

“While airlines lowered their airfares to attract business in the current global economic slowdown, the airports appear to have enjoyed the security of guaranteed prices as well as benefiting from the airlines’ efforts to encourage travel,” Mr Samuel said.

The airports other than Sydney reported more passengers than the previous year and slightly increased service quality. The higher passenger numbers contributed to an increase in revenue and profits.

The ACCC says it is also concerned that the airports’ monopoly position in car parking could be used to exploit the public. To increase the transparency and accountability of airport car parking operations, the Commission monitors indicators including prices, costs and profits, as well as service quality.

“The indications are that car parking prices likely reflect an element of monopoly rent. At least some car parking charges increased at all of the monitored airports during the 2008–09 financial year, or since then. The ACCC has observed that some airports may affect the cost or convenience of potential alternatives to on-airport parking, which could contribute to the high margins reported for on-airport car parking.”

The service that passengers experience at airports is affected by airlines, border agencies and the airports themselves. To better understand the contribution that the airports make, the ACCC says it surveys airlines on whether they are receiving a level of service that would be reasonably expected:

“In their survey responses, airlines have consistently identified Sydney Airport as the least responsive of the airports with respect to service delivery and quality over a sustained period of time. In particular, Sydney Airport’s international terminal was rated below satisfactory on average by the airlines. While Sydney Airport has announced proposed improvements to the terminal, there is a question as to whether this should have been carried out earlier. Although the airport reported higher levels of investment (representing 14 per cent of assets) in 2008–09, this was the largest level of investment by the airport since 1999–2000.

In contrast, over the five years covered in the report, Brisbane and Melbourne airports achieved ratings significantly above satisfactory and both airports reported investment of between 14 and 22 per cent of assets in 2007–08 and 2008–09. Airlines’ ratings of Adelaide Airport improved with the commencement of operations at the new terminal during 2005–06. Finally, although Perth Airport’s service quality results have declined in recent years, these outcomes seem to be relatively short lived and appear to have been largely driven by unexpected growth in passenger numbers. Indeed, Perth Airport has undertaken sizeable investment to address the quality of service problems, with the airport reporting investment of 19 per cent of assets in 2008–09.

The regulation of the five monitored airports, including car parking, is scheduled to be reviewed by the Productivity Commission in 2012.

In that busy airspace over 25,000 helicopter flights annually carry half a million passengers each year between Aberdeen Airport and the oil and gas operations in the North Sea. Low-level radar coverage only extends 80 miles off the shore, forcing controllers to rely on pilot’s positional radio updates provided every ten minutes. Also, established inbound and outbound flight paths are, in many cases, not the most efficient routes due to the lack of visibility to air traffic control.

To improve safety and efficiency, NATS Services required a solution that provided high accuracy radar-like surveillance that was also compatible with future technologies such as Automatic Dependent Surveillance – Broadcast (ADS-B). NATS selected Sensis Corporation’s wide area multilateration (WAM) to cover some 25,000 square miles of the North Sea with multilateration sensors placed on 16 oil platforms. One of the platforms is floating, making the development of the Sensis solution even more challenging.

Multilateration relies on signals from an aircraft’s transponder being detected at a number of receiving stations to locate the aircraft. It uses a technique known as “time difference of arrival” (TDOA) of individual transponder responses at a number of receivers. This establishes “surfaces” which represent constant differences in distance between the target and pairs of receiving stations, and determines the position of the aircraft by the intersection of these surfaces.

Sensis WAM uses multiple low-maintenance, non-rotating sensors to triangulate aircraft and helicopter locations based on transponder signals to provide air traffic controllers with precise aircraft position and identification information regardless of weather conditions. With a higher update rate and greater positional accuracy than traditional radar, Sensis multilateration provides effective surveillance for increased safety, capacity and efficiency of airspace. With its advanced processing techniques, a Sensis multilateration system uses the minimal number of sensors for a less complex, lower lifecycle cost solution. Additionally, each multilateration sensor deployed by Sensis supports ADS-B.

Although Multilateration is most often used to manage surface vehicle and aircraft traffic, it is now also acknowledged to be a viable alternative to automatic dependent surveillance (ADS-B) in many airspace environments, both for terminal area and enroute monitoring. To the aircraft operator it has the advantage that it can be used by any aircraft transponder, including Modes A and C, with which almost all general aviation aircraft are already fitted. This in notable contrast to the expected cost to aircraft owners of fitting ADS-B capable transponders if they become mandatory, which some owners complain would double the value of their light aircraft.

SENSIS WAM is now installed and operational at Sydney where it will replace the precision runway monitoring radar (PRM) used by air traffic controllers to monitor aircraft approaching the two parallel runways, and is also an element of Sydney’s terminal area monitoring. It has also undergone detailed trials in Tasmania as an enroute monitoring system, and that trial is expected to result in a permanent commissioning soon.

Airservices Australia is now considering a number of other possible Australian locations for installation of the system.