A Plan to avoid Long-Term Impacts of Introducing Landing Fees for General Aviation in Australia

Introducing landing fees at regional and local aerodromes in Australia—particularly those catering to general aviation (GA)—may appear to offer a short-term revenue boost for councils. However, long-term evidence and economic logic suggest this approach is counterproductive and may actually reduce overall income for local governments while harming regional economies.

1. Reduced Aerodrome Traffic Leads to Lower Revenue

The imposition of landing fees deters private and small commercial pilots, including flying schools, aero clubs, and tourism operators. Most GA flights operate on thin margins, and even modest fees can discourage visits.

• Case Study: When Moorabbin Airport introduced higher fees, some flight training operations reported a 20–30% decline in touch-and-go training circuits.
• Data Point: A 2021 report by the Australian General Aviation Alliance found that every $1 in landing fees led to a $4 loss in associated spending (fuel, food, accommodation, maintenance) at small aerodromes.

2. Negative Economic Ripple Effect on Local Business

Aerodromes are gateways to small towns, supporting:

• Local tourism (fly-in events, airshows, weekend getaways)
• Emergency services (RFDS, firefighting aircraft, search and rescue)
• Local trades and service businesses (mechanics, hospitality, fuel suppliers)

When landing fees are introduced:

• Tourism pilots choose alternative destinations with free landing.
• Events like fly-ins and charity airshows relocate or shrink.
• Charter operators route away from fee-imposing aerodromes.

Example: After the introduction of landing fees at Albany Airport (WA) in 2018, local tourism businesses saw a 15% drop in aviation-linked visits within a year, according to the Regional Aviation Association of Australia (RAAA).

3. Councils Face Higher Administrative and Opportunity Costs

• Fee collection infrastructure requires systems, staff time, and enforcement—often outweighing the revenue generated, especially when compliance is low.
• Loss of goodwill: Aero clubs and volunteer groups often maintain infrastructure, mow grass, and promote the aerodrome at no cost. If driven away, these contributions disappear.
• Missed grants: Active GA use often qualifies councils for aviation safety and infrastructure grants. Declining traffic can disqualify them.

4. Long-Term Income Decline vs. Community Benefit Loss

Short-term gain:

• A landing fee of $15 per aircraft might earn $1,500/month (based on 100 aircraft), barely offsetting costs.

Long-term loss:

• Loss of tourism and aviation business can cost towns tens of thousands in annual visitor spending.
• Community access to essential services (e.g., patient transfers, aerial surveys) is weakened.