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Australian second tier and regional airports set to grow

Premium Analysis

Regional airports in Australia are set to continue experiencing

strong growth over the next couple of years, stimulated by new airline entry

and regional aircraft fleet expansion. The Australian Government announced plans

this week to invest USD20 million over the next four years to continue subsidising

the en-route air traffic control charges paid by more than 35 regional airlines

and other operators. The subsidy allows regional airlines to service more

destinations and should make fares in regional Australia more affordable. According

to Transport Minister, Mark Vaile, "the subsidy has a vital role in supporting

Australia's regional airlines, which carry more than 2.3 million passengers

p/a and connect our regions to the major cities".

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