ALGA News recently sat down with aviation expert and Hales North Managing Director Sara Hales to discuss local government’s key role in the future of regional airports across Australia. Ms Hales highlighted that many regional airports, largely owned by local governments, are facing significant changes and challenges.
ALGA: As you know, local governments manage and maintain many regional airports around the nation. Tell us your thoughts about how the future is looking for these important aviation assets?
Sara Hales (SH): Over the next 20 years, regional airports must deal with unprecedented change. Hundreds of new aircraft types are under development, which range across fuel types, propulsion systems, mission types and crew requirements.
The promise of electric aviation to reduce operational costs suggests a possible resurgence of intra-regional aviation and growth in general aviation. This could drive increased demand on regional airport infrastructure.
However, the mix of fleet will change, and so will customer needs. Consideration must be given to provision of alternative fuels, electric recharging and battery storage, hydrogen and sustainable aviation fuel infrastructure. Local governments must also assess the provision of aircraft pavements, movement areas, procedures and airspace protection to support emerging aircraft types.
Many regional airports must navigate these changes with constrained cashflow and often poor financial performance. While vital to their communities – supporting business, trade, investment, health, and emergency services – they often operate at a financial loss.
ALGA: We know councils are at the forefront of climate action so how will this issue affect our airports?
SH: Climate change will continue to impact this sector, presenting both risks and opportunities. Community dependence upon aviation and airport assets will compound as regions deal with increasingly frequent fires, floods and other severe weather impacts. Changing climate conditions will also affect infrastructure lifespan, requiring adaptive planning.
Importantly, the global aviation industry will continue its march towards net zero 2050, driving airports to adapt their asset renewal and investment strategies. Carbon emissions that are free today may come at a cost tomorrow, influencing financial and operational decisions.
Thought must be given to supporting airline customers to decarbonise their operations. Shifts such as move towards electric ground handling equipment, provision of pre-conditioned air and electricity to aircraft on bay, changes to flight procedures to reduce fuel burn and consideration to taxiway gradients that support single engine taxi are all themes that regional airports much seek to accommodate.
ALGA: Gazing into your crystal ball, what does the future of regional aviation look like?
SH: In the future, aviation will likely be more important to more people and communities. Regional aviation will likely increase.
Workforce availability and retention will be ongoing challenges, alongside new responsibilities like carbon accounting and reporting. The geopolitical environment remains uncertain, and long-term capital allocation decisions must factor in emerging risks. Meanwhile, digital transformation will accelerate, with smart technologies like digital twins and Internet of Things (IoT) devices increasingly adopted, and consideration given to heightened cybersecurity threats, including AI-driven risks.
While airports can be costly, they are critical infrastructure and local gateways: difficult to replace and essential to future economic and social wellbeing and community resilience of communities. This is the strategic planning landscape for many regional airports.
ALGA: How can local government manage the financial burden of running these important community assets? How can they improve financial sustainability, enhance climate resilience, support changing customer needs and strengthen community economic and social wellbeing?
SH: Strategic planning considers these impacts in the context of the community the airport serves, identifying opportunities and risks, and aligning infrastructure investment with financial realities.
Strategic planning also involves legacy infrastructure, future proofing assets, optimising operations, and strengthening financial performance through developing productive and collaborative relationships with others. It focuses on leveraging both aeronautical and non-aeronautical revenue, managing risks, attracting investment, and identifying opportunities to improve cash flow.
Harvard Business School professor Michael Porter famously said: “The essence of strategy is choosing what not to do”. This is highly relevant to the airports, which, in our high-cost regulatory environment, cannot afford to be all things to all people.
ALGA: What is your expert advice for councils managing small airports and aerodromes?
SH: By focusing on core strengths and excluding distractions, resources can be effectively allocated to ensure success. A prime example is Virgin Australia’s remarkable turnaround, achieved through strategic clarity and disciplined execution.
Regional airports and local governments across the country face these continuing challenges.
A clear strategic direction, supported by an actionable plan, enhances financial sustainability, informs infrastructure design and supports climate resilience, and community well-being.