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Source: Photos.com
Australia's regional and bush airports could be about to hit severe turbulence because of the high costs of maintaining infrastructure, a new economic report warns.
A Deloitte research report released on Thursday found that despite contributing $329 million to the national economy each year, regional airports are at risk.
The Australian Airports Association's Caroline Wilkie says several airports need to upgrade facilities to meet passenger growth, which is forecast to increase by 3.3 per cent each year to 2025.
But with only 45 per cent of regional operations turning a profit that's a major challenge.
"For many Australians living in remote locations, regional airports are the lifeblood of the community and the only practical means to access emergency and essential services," Ms Wilkie said.
The boom in fly-in fly-out mining has increased pressure on airports in country WA, Queensland and NSW.
For others, costs are rising due to the need to upgrade security.
The report found as a percentage of their total operational costs, regional aerodromes pay three times more on regulation-related costs than major airports, and have limited opportunities to generate alternative revenue streams.
The airports association is preparing a major paper on regional airports to be delivered later this year.