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Report on performance

Transport outputs and programmes

Output 1.4.2: Aviation and Airports

(Aviation and Airports Business Division)

Effectiveness

Industry operates in a robust and stable regulatory environment

In 2005-06, the Australian aviation market continued to grow and to serve an increasing number of Australian travellers and international visitors.

International safety obligations

The department worked closely with CASA and Airservices Australia to ensure effective representation and participation in the ICAO forums and a coordinated Australian response to international regulatory issues (page 102).

The department led Australia's representations at a special ICAO meeting of directors general of civil aviation, held in March 2006, which reinforced directions for ensuring safety obligations are enforced globally.

In addition to this, the department participated in activities to promote and deliver enhanced safety oversight in the Asia-Pacific region through cooperation. These included:

  • continuing assistance to Papua New Guinea's Civil Aviation Authority through the Government's Enhanced Cooperation Programme
  • representation on the Pacific Aviation Safety Office Council
  • hosting the 42nd Conference of Asia Pacific Directors General of Civil Aviation, held in Queensland on 26-30 September 2005
  • sponsoring a Pacific Islands Forum aviation officials meeting in Fiji on 16-17 August 2005.

Significant progress was made in the streamlining of processes for regulatory approvals through:

  • tabling in parliament of both the executive agreement and implementation procedures for airworthiness under the Bilateral Aviation Safety Agreement with the United States, which were approved by the Joint Steering Committee on Treaties in May 2005
  • introduction to parliament of the Civil Aviation Legislation Amendment (Mutual Recognition with New Zealand) Bill 2005, which was passed by the Senate on 11 May 2006 and transmitted for consideration in the House of Representatives.

These initiatives offer benefits in reduced administrative burdens for those in Australia's aviation industry who wish to participate in international markets, while maintaining Australia's high aviation safety standards.

Assistance to the Makassar Centre, Indonesia

The Australian Government responded promptly to a request from the Government of Indonesia for assistance in the operations of the advanced air traffic system in the Makassar Air Traffic Management Centre in eastern Indonesia. Through the Australian Agency for International Development, the government provided $207,000 to fund assistance from Airservices Australia, which was provided from January to March 2006.

The Makassar Centre manages aircraft in the Makassar Flight Information Region (FIR) that is adjacent to the Brisbane FIR and is used by Australian aircraft flying to various destinations in Asia. The technology installed at the Makassar Centre is similar to the system used by Airservices Australia for air traffic management in Australia.

Aviation rescue and firefighting consultation

The department commenced a review of the policy and regulatory framework underpinning the provision of aviation rescue and firefighting (ARFF) services in Australia. Through public consultation, the review will examine the criteria for the establishment of ARFF services, and options for the introduction of contestability in the provision of these services.

Significant changes have occurred in aviation since the current regulatory framework was first introduced, including:

  • the advent of low-cost carrier operations with rapid passenger growth at some regional and former general aviation airports
  • construction of business parks and other non-aeronautical development on airport sites, which have significantly increased the number of people on site. Planning and development includes convention centres, offices, shopping facilities such as direct factory outlets, hotels, car parks and service facilities including freight and logistics centres
  • proposed introduction of new aircraft with significantly higher passenger capacity, such as the Airbus A380, in 2007.

Summary of significant achievements in aviation in 2005-06

On behalf of the government, the department:

  • completed an analysis of the governance structures for CASA and Airservices Australia in response to the Uhrig report
  • worked on improved regulatory systems for aviation information, meteorological and ARFF services
  • supported analysis of increased cost recovery implemented from 1 January 2006 by CASA, including a review of funding options
  • developed advice on implementation of a drug and alcohol testing regime in the aviation sector, in partnership with CASA, leading to a decision by the minister to proceed with the new testing regime
  • continued to work with border control agencies on security and facilitation arrangements at international airports: to ensure that airport infrastructure and practices can respond positively to the current and forecast future growth in international passenger traffic over the next ten years; and to cope with the imminent arrival of new, large wider-bodied aircraft such as the Airbus A380, which can carry over 500 passengers
  • participated in developing a whole-of-government approach to planning and preparing for a possible avian influenza pandemic, particularly in relation to transport, security and regional aspects
  • took leadership of the APEC forum's Transportation Working Group in preparation for Australia's role as host to APEC in 2007
  • continued to support the government's efforts to pursue cooperative international approaches to enhancing aviation safety through the ICAO, Papua New Guinea Enhanced Cooperation Programme and the Pacific Islands Forum
  • continued to provide secretariat services to the International Air Services Commission (www.iasc.gov.au), which allocates access for Australian airlines to international markets
  • continued to regulate scheduled international air services, in accordance with the requirements of the Air Navigation Act 1920 and its regulations, through: timetable approvals for 70 international airlines operating passenger or freight operations either in their own right or on a code share basis; and issue of six international airline licences and 19 permissions for charter programs
  • continued negotiations seeking new or improved air services agreements and/or arrangements with Argentina, Brazil, Japan, Vietnam, Switzerland and Qatar in support of the Australian Government's objective of improving Australia's access to international markets; and supported the Australian Commerce and Industry Office in Taipei in its successful aviation consultations with the Civil Aeronautics Administration in Taipei
  • approved temporary airport designations to permit ad hoc international air operations to and from airport, such as Ayers Rock and Essendon, that would otherwise be unable to be used for international air services.

Businesses and consumers have access to competitive international and domestic air services

Domestic aviation industry policy

BTRE figures report a total of 42.02 million passenger movements on Australian domestic and regional air services for the year ending April 2006, an increase of 5.0 per cent on the year from April 2005. The market has continued to evolve over the past 12 months, with the rapid expansion of capacity seen in 2004-05 moderating to what appears to be more sustainable long-term levels in 2005-06. Australia's major domestic airlines have managed to remain profitable despite the recent challenges of high fuel costs, balancing improvements in yields and fleet utilisation with the demands of continuing growth in the passenger market.

In November 2005, Regional Express became the second regional airline to successfully list on the Australian Stock Exchange, following Skywest's listing 12 months earlier. The continued investment in the regional aviation market is important to the many regional communities that rely on air services for their social and economic wellbeing and growth. In recognition of the particular challenges facing regional aviation, the government continued to subsidise en route navigation charges for smaller airlines through the payment scheme for Airservices Australia's en route charges.

The scheme supports access to air services in regional Australia by subsidising Airservices Australia's en route air traffic control charges for regular public transport and aeromedical aircraft of less than 15 tonnes maximum take-off weight. Effective from 1 July 2005, the scheme was expanded to include companies based solely in Western Australia operating regular public transport aircraft up to 21 tonnes on sole operator routes in Western Australia. During 2005-06, 35 regional airlines and aeromedical operators were registered for the scheme.

The department undertook a review of the scheme in late 2005 for consideration in the 2006 Budget. The government announced in the 2006 Budget an extension of the scheme for 12 months until 30 June 2007 at a cost of $5.4 million.

International air services

High fuel costs posed a major challenge to airlines providing international services to and from Australia. Following the double-digit growth in passenger numbers in 2004-05, BTRE figures show that 20.9 million passengers travelled on scheduled airline services to and from Australia in the year to March 2006, a 4.6 per cent increase on the previous 12-month period. Australia is served internationally by 46 passenger airlines and six dedicated freight operators.

In 2005-06, the department supported the government in a major review of Australia's international air services policy, the results of which were announced by the minister in February 2006 (see case study 'A comprehensive review of air services policy' in Chapter 1 on page 8).

Airspace is managed efficiently within international standards

New airspace arrangements phased in

An Aviation Policy Group was formed to establish better working relationships across the four agencies involved in airspace policy, regulation and service provision. It provides a high-level forum to oversee coordinated action across the portfolio and with the Department of Defence.

The members of the Aviation Policy Group are: the Secretary of DOTARS (Chair), Chief of the Air Force, Chief Executive Officer of CASA and Chief Executive Officer of Airservices Australia. They meet as required, on average every two months.

National Airspace System-the airspace reform programme

In May 2002 the government agreed to adopt an airspace reform policy, called the National Airspace System (NAS). This policy was designed to implement more flexibility and efficiency into Australian airspace operating procedures, while maintaining a high level of safety. The system, which has been successfully operating in the United States for the past 40 years, is being adapted for Australian conditions and implemented in a phased manner.

Stage 2c was introduced in November 2005 and introduced new procedures for operations at aerodromes without air traffic control towers. A post-implementation review on NAS Stage 2c, including a survey of radio use at non-towered aerodromes and training and education material, commenced in May 2006.

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Table 3.10 Trends in aviation and airports

2002-03

2003-04

2004-05

2005-06

2006-07 Est.

Departmental activities

Price of output

n/a

n/a

$21.8m

$27.2m

$26.3m

Activity regulated under the Air Navigation Act 1920

Aircraft noise permits issued

68

25

48

31

No set target

Activity regulated under the Airports Act 1996

Airport master plans approved

1

3

13

2

1a

Variations to master plans approved

2

1

-

1

No set target

Airport environment strategies approved

Not reported

Not reported

18

1

No set target

Major development plans approved

Not reported

5

7

5

No set target

Decisions made on development proposals infringing on federal airspace

Not reported

27

18

34

No set target

Administered programmes

Payments to airport lessees

  • parking fines

-

$1.5m

$1.7m

$0.9m

$1.5m

  • sale of airport land

$2.7m

-

-

-

$0.003m

  • land acquisition

-

-

$3.4m

-

-

Payment scheme for Airservices Australia's en route charges

Operators supported

44

43

41

35

No set target

Cost of programme

$4.8m

$4.3m

$4.7m

$6.0m

$5.4m

Other programmes administered

Cost of other programmes including contribution to ICAO and airport noise programmesb

$35.4m

$42.1m

$18.6m

$16.8m

$9.3m

Total cost of administered programmes

$50.8m

$56.2m

$35.6m

$23.7m

$16.2m

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a Gold Coast Airport is due to submit a master plan in 2006-07. Master plans are not required for Mt Isa and Tennant Creek airports.
b To minimise repetition, information on the contribution to International Civil Aviation Organization (ICAO) has been included under 'Administered Programmes-Contributions' and in Table 3.9 (see pages 102 and 103).

Effectiveness

Australian Government investments in transport infrastructure are managed responsibly

Leased federal airports managed responsibly

The department is responsible for administering the Australian Government's interests in the ongoing operation and management of the privatised airports under the Airports Act 1996 (the Airports Act) and associated regulations.

Between 1997 and 2003, 22 airports owned by the Australian Government were privatised. The sales, which involved leasehold rather than freehold title, were conducted in five stages and raised $8.5 billion. Rights to operate these airports were leased out for an initial period of 50 years with an option to renew for another 49 years. The exception is Hoxton Park Airport in Sydney. The lease for Hoxton Park Airport expires in 2008 with an option to extend to 2010, after which it converts to freehold title.

Under the Airports Act, a master plan and an airport environment strategy (AES) must be prepared for every airport, except for Mt Isa and Tennant Creek airports. The master plan represents the airport lessee company's planning and development vision for the airport over a 20-year period. Both must be submitted to the minister for approval and be reviewed every five years. A major development plan is required for each major development at an airport. Major airport developments include runways, buildings that cost greater than $10 million and developments likely to have significant environmental or ecological impact.

In 2005-06 the department provided assessments to the minister on:

  • two airport master plans
  • one minor variation to a master plan
  • five major development plans
  • two minor variations to major development plans
  • one AES.

Table 3.10 provides trend information on the numbers of master plans and airport environment strategies approved.

In November 2005, the minister announced the outcomes of a review of the Airports Act which reported that, although the Act is working effectively, a number of processes could be improved. Suggested improvements include refining the planning and development approval regime at leased federal airports, clarifying noise management arrangements and the role that environment management systems play in the implementation of AESs at these airports, and implementing other changes to further enhance the operation of regulatory arrangements for the federal leased airports. The proposed changes to the Airports Act are likely to be introduced into parliament during 2006-07.

A further amendment to the Airports Act is proposed to give effect to a decision made by the Australian Government in 2006 to remove Canberra Airport from the operation of the National Capital Plan. This would place the airport on an equal footing with the other 21 leased federal airports across Australia, removing regulatory duplication.

Airport environmental officers (AEOs) and airport building controllers at the leased airports helped the department to monitor and ensure compliance with environmental and building standards (see page 111).

In 2005-06 the department:

  • assisted with the establishment of the major 'Review of price regulation of airports services', to be undertaken by the Productivity Commission over the nine-month period commencing April 2006
  • developed for comment draft consultation guidelines, the aim of which is to provide for a shared understanding of how consultation processes in relation to land use, planning and developments at the leased federal airports should be managed
  • granted a declaration under the Airports (Ownership-Interests in Shares) Regulations 1996 allowing a limited moratorium on an unacceptable cross-ownership situation related to the takeover by the Spanish-led Ferrovial consortium of BAA in the United Kingdom, shareholders of various overseas airports and several Australian airports
  • continued to ensure that government-owned rental properties at Badgerys Creek were appropriately maintained (page 121)
  • assisted the Australian National Audit Office in the follow-up audit to its Performance Audit Report No. 50: Management of federal airport leases 2003-04 and in an audit of the Sydney Demand Management Act 1997.

Review of price regulation of airport services

The government announced on 30 March 2006 that it would examine the effectiveness of the current light-handed regime for monitoring airport pricing that applies to seven major capital city airports (Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney). The department has assisted with the development of terms of reference for this major inquiry, which is being undertaken by the Productivity Commission. Information on the Inquiry can be found at the commission's website at www.pc.gov.au.

Airport lease reviews

The department's oversight of leased federal airports includes the assessment of their level of compliance with the lease terms. This includes undertaking a rolling programme of annual lease reviews of all 22 leased airports. While the department endeavours to meet all scheduled dates for lease review meetings, the timing of these can be changed because of unforeseen circumstances or mutual agreement between the department and the airport. Table I.1, detailing the airport lease review meetings in 2005 and 2006, appears in Appendix I.

Airport insurance reviews

Airport lessees have obligations to the Australian Government through the airport lease and sale agreements in relation to the maintenance of a range of insurances. The department, with the assistance of a contracted insurance adviser, conducts annual reviews to monitor compliance by the airports. Table I.2, summarising the progress with reviews, appears in Appendix I.

Environmental management and building control at airports

Under the airport leases, the management of the environment on the airport site is the responsibility of the airport lessees. Through the Airports Act 1996 and Airports (Environment Protection) Regulations 1997 (the Environment Regulations) the department regulates activity on the airports that has an environmental impact.

  • All leased federal airports, except for Mt Isa and Tennant Creek, have in place an AES. The AES is a critical component of the leased federal airport's environment regulatory regime, and works on the basis of advocating continuous environmental improvement. An AES is normally in force for five years from the date of its approval. The draft AES is prepared by an airport lessee after taking into account public comments and is submitted to the minister for approval.
  • Major airport developments over the past year with significant environmental elements include the Tugun Bypass at the Gold Coast Airport and the extension of the Canberra Airport runway.
  • The airport environment officers are statutory officeholders appointed by the secretary to administer the Environment Regulations. The majority of the AEOs are now departmental officers.
  • The airport building controller has responsibility for approving all building activities on an airport site and works closely with the AEO to ensure that environmental and heritage issues are reflected in any conditions attached to a building permit. This ensures that the environmental regulatory regime covers all developments on airport sites.
  • Two of the airports-Melbourne and Gold Coast-are certified to ISO 14001 (the International Standards Organisation standard for environmental management systems).
  • There has been continuing progression of remediation of contaminated sites at a number of the airports across Australia.

Authorisations issued under the Airports (Environment Protection) Regulations 1997 during 2005-06

An authorisation is a process provided within the Environment Regulations that authorises the applicant to undertake an act on an airport that will result in environmental emissions that exceed the levels mentioned in the schedules attached to the Environment Regulations. An authorisation may be provided only where the emissions are no more damaging to the environment than if the levels in the schedules had been met. Authorisations are intended to provide for transitional compliance with the Environment Regulations whilst the applicant investigates and pursues methods of achieving compliance with the schedules. Table I.3, detailing the authorisations issued during 2005-06, is located in Appendix I.

Investment in required aeronautical infrastructure tops $568 million

Lessees for 10 airports-Adelaide, Brisbane, Melbourne, Perth, Alice Springs, Darwin, Canberra, Gold Coast, Hobart and Launceston-committed to invest approximately $700 million in aeronautical infrastructure over the first 10 years of the leases. This obligation is split into two five-year periods (Period One and Period Two). There were no specific development obligations under the sale agreements for Archerfield, Bankstown, Camden, Hoxton Park, Jandakot, Essendon, Moorabbin, Mount Isa, Parafield, Tennant Creek, Townsville and Sydney airports.

More than $568 million had been invested in aeronautical infrastructure by the 10 airports by 30 June 2005. Expenditure data for 2005-06 will not be available until late September 2006. All 10 lessees have exceeded their Period One obligations. Six lessees-Melbourne, Adelaide, Darwin, Hobart, Launceston and Perth-have exceeded their 10-year obligations and are no longer required to submit plans or reports to the department. Extensions to Period One have been granted to Alice Springs Airport (four years) and Gold Coast (one year) as terrorism, disease and the Iraq war, among other things, resulted in downturns in passenger traffic and aircraft movements. To date no extensions to Period Two have been granted. The remaining four airports (see Table 3.11) are expected to meet their Period Two obligations, given the significant aeronautical investment taking place at each of them.

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Table 3.11 Airport development expenditure at major airports

Airport

Sale phase

Expenditure to 30 June 2004 $m

Expenditure to 30 June 2005 $m

Period One obligation $m

Period Two obligation $m

Total $m

Commitment met?

Adelaide

2

72.3

72.3

41.4

22.6

64.0

Yes

Alice Springs

2

0.5

1.8

1.2

1.9

3.1

No

Brisbane

1

82.1

179.0

44.4

292.9

337.3

No

Canberra

2

32.2

39.6

11.0

46.9

57.9

No

Gold Coast

2

19.2

23.4

19.2

8.5

27.7

No

Darwin

2

4.2

21.6

3.3

2.7

6.0

Yes

Hobart

2

1.8

7.8

3.8

1.7

5.5

Yes

Launceston

2

3.0a

3.5

2.2

0.9

3.1

Yes

Melbourne

1

107.8

107.8

78.3

29.0

107.3

Yes

Perth

1

64.8

111.3

54.6

33.3

87.9

Yes

TOTAL

387.9

568.1

259.4

439.6

699.8

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a The final Period One expenditure figure for Launceston Airport was $3.0 million, not $2.7 million as reported in the department's 2004-05 annual report.

Effectiveness

Australian Government investments in transport infrastructure are managed responsibly (continued)

In 2005-06 the department continued to monitor this obligation at these airports. While all airports submitted expenditure plans and audited reports to the department as required, timeliness continued to be an issue. Where expenditure plans have not been submitted on time, this is primarily due to airports seeking to confirm actual expenditure in the previous year before submitting plans for the following year. Table I.4, detailing the timeliness of airport expenditure plans and audit reports, appears in Appendix I.

Major airports continue to commit to further significant levels of aeronautical investment. Examples follow:

  • Adelaide Airport's $260 million integrated passenger terminal was opened in October 2005 by the Prime Minister and is now fully operational
  • plans for a new parallel runway at Brisbane Airport-estimated to cost approximately $1 billion-are expected to go out to public comment in late 2006. Consideration of this project will involve Australian and state government legislation
  • during 2005-06 the Australian Government provided $28.5 million for the strengthening of the existing main runway at Canberra Airport to accommodate the use of the airport by visiting dignitaries arriving in heavy aircraft, such as the Boeing 747. In addition, a 600-metre extension to the same runway is being funded by the airport lessee and will be built to the same strength. The entire strengthening and lengthening project is expected to be completed by late November 2006
  • Melbourne Airport has further implemented its $550 million development programme to accommodate recent strong growth in passenger traffic and will continue to do so over the next few years
  • Sydney Airport announced the $500 million Project STAR, which incorporates modernisation of the international terminal, renovation of the domestic terminal, and upgrading of the airfield in preparation for the arrival of the next generation of aircraft through to 2010.

There has been a significant increase in the number of major development plans approved, from four in 2005 to seven in 2006 so far (with more under assessment). Table I.5, listing the approved major development plans by calendar year, appears in Appendix I.

Community exposure to aircraft noise is minimised with attention to the needs of specific communities

Aircraft noise measures maintained

In order to minimise aircraft noise exposure, all civil aircraft in Australia are required to comply with aircraft noise regulations under the Air Navigation (Aircraft Noise) Regulations 1984.

In order to manage night-time aircraft noise, curfews apply from 11 pm to 6 am at four major airports-Sydney, Adelaide, Gold Coast and Essendon. The Sydney and Adelaide curfews have been put in place by Acts of Parliament, while the Coolangatta and Essendon curfews have been put in place by regulations. Under the curfews strict controls apply to the types and numbers of aircraft that can be operated and the runways used.

The department continued to manage the curfew system in 2005-06 and,

  • assessed 141 applications for curfew dispensation (112 for Sydney, 20 for Adelaide and 9 for Gold Coast)
  • approved 88 curfew dispensations (72 for Sydney, 11 for Adelaide and 5 for Gold Coast)
  • provided secretariat support for the Sydney Airport Community Forum, which advises the government on noise and related environmental issues at Sydney Airport.

The department is continuing to update the TNIP (transparent noise information package) aircraft noise transparency software in response to requests from users. This communication tool is designed to enable non-specialists to gain an understanding of aircraft noise exposure patterns in the vicinity of airports and to help airports and communities work together to explore options for managing aircraft noise.

The department is actively involved in the work of the ICAO Committee on Aviation Environmental Protection. This committee recommends standards and practices for minimising the environmental impacts of aviation. The work of this committee includes developing the noise emission standards for aircraft, which are specified in chapters contained in Annex 16 to the Chicago Convention.

Price

$24.7m

The actual price of this output in 2005-06 was $27.2 million.

Overall performance

Administered programme-Airport Lessee Companies-reimbursement of parking fines
(Aviation and Airports Business Division)

Effectiveness

Revenue is passed onto airport lessees in line with a formula set by the Minister for Finance and Administration

This programme reimbursed seven airport lessees a proportion of parking fines collected for parking offences in airport precincts. Reimbursements are made in accordance with contracts between airport lessees and the department. Launceston Airport is included in the regime, but did not receive reimbursements as no separate contract was in place for 2005-06. Quarterly payments to airport lessees are based on a formula set by the Minister for Finance and Administration, namely 80 per cent of the revenue from parking fines for the quarter collected by the airport lessees and forwarded to the department, less administrative costs.

Location

Sydney, Melbourne, Brisbane, Perth, Coolangatta (Gold Coast), Townsville, Hobart and Launceston airports

Only 8 of the 22 federal airport lessees are covered by the government's parking infringement regime, with the remaining airports making alternative arrangements.

Cost

$2.6m

The actual cost of this programme in 2005-06 was $0.9 million, down from $1.7 million in 2004-05. Up to $1.5 million is available for this programme in 2006-07.

Overall performance

Administered programmes-Compensation for acquisition and sale of airport lands
(Aviation and Airports Business Division)

Quality/Location

Airport lessees receive appropriate compensation

From time to time the Australian Government adds or removes airport land with the consent of the airport lessee to facilitate on- and off-airport development. The department administers compensation to airport lessees after an appropriate price is agreed with parties including the Department of Finance and Administration.

The department executed an agreement to transfer land at an agreed value of $0.003 million to enable road widening and other traffic improvements off the Hobart Airport site, and worked on amendments to Airport Regulations 1997 to reflect the change in the leased area. Settlement of this matter is expected to occur in the first half of 2006-07.

Negotiations for a land disposal at Gold Coast Airport to facilitate the construction of the Tugun Bypass have concluded in an agreement to transfer some land at an agreed value of $8.5 million. The land transfer is expected to occur in the second half of 2008 following completion of the road.

Negotiations are continuing over:

  • the sale of land from the south-western corner of Essendon Airport to facilitate the upgrade of the Tullamarine/Calder Freeway interchange (the financial impact is currently under consideration)
  • the sale of land at Darwin Airport to facilitate a new entrance to the airport (no financial impact is anticipated)
  • a land swap at Perth Airport which will facilitate land planning at the airport (no financial impact is anticipated)
  • the potential transfer of land to the Queensland Government to facilitate the Gateway Motorway upgrade across Brisbane Airport land (the financial impact is currently under consideration)
  • the sale of site 710 at Camden Airport in accordance with the Share Sale and Purchase Agreement for Bankstown Airport Ltd, Camden Airport Ltd and Hoxton Park Airport Ltd
  • the sale of land at Archerfield Airport to construct a road to alleviate significant traffic problems in the area (the financial impact is currently under consideration).

Cost

$0.003m (up from $0.0m at Budget)

The actual cost of this programme in 2005-06 was nil. It is anticipated that the sale at Hobart Airport will be finalised in 2006-07.

Overall performance

Administered programme-Implementation of noise amelioration-Sydney and Adelaide Airports
(Aviation and Airports Business Division)

Effectiveness

Community exposure to aircraft noise is ameliorated in eligible buildings

Airport noise amelioration programmes were introduced to Sydney and Adelaide in 1994 and 2000, respectively. Under both programmes, the Australian Government pays for noise insulation to be installed in eligible homes and public buildings such as schools, colleges, preschools, childcare centres, health and aged-care facilities and churches.

Eligibility decisions for insulation are based solely on assessments of aircraft noise exposure under the Australian Noise Exposure Forecast (ANEF) system as updated by the annual Australian Noise Exposure Index (ANEI) maps. This system takes into account the numbers and types of aircraft, their flight paths and noise characteristics, and the time of day of their operation.

To be eligible, public buildings must fall within the 25 noise exposure contour under the ANEF system, and residences within the 30 noise exposure contour. Where the contour intersects a residential property within a street block, insulation eligibility is extended out from the contour line to include all other houses in that street block up to a break in continuity of residential properties-normally a street, drain or open area. This is done to prevent a situation where neighbouring houses might be treated differently.

Quality

Work is carried out by qualified professionals and is rated as good or better by 80% of building owners

Residents have been asked through the programme to rate the quality of our work through post-insulation surveys. As no residences were insulated during 2005-06, no information was collected on ratings. Table 3.12 shows trend information for previous years.

Quantity

Approximately 4,755 eligible homes and 96 eligible public buildings are insulated from aircraft noise

Both the Sydney and Adelaide programmes are nearing completion. By 30 June 2006, all eligible buildings had been identified. All eligible residences whose owners had accepted the offer of insulation have now been insulated. Over 100 public buildings have been insulated, with work underway on a remaining 4. Trend information on aircraft noise amelioration is provided in table 3.12.

Location

Adelaide, Sydney

For information on the properties that have been insulated, visit www.dotars.gov.au/transport/programs/.

For information on noise and flight path monitoring at major airports, www.airservices.gov.au/reports.

Cost

Adelaide: $7.0m

Sydney: $5.4m (up from $4.3m at Budget)

The actual cost of this programme in 2005-06 was $4.6 million. This was lower than planned due to the nature of the programme and difficulties in accurately forecasting the timing of building projects. Some $2.7 million has been carried forward to 2006-07 and 2007-08.

Overall performance

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Table 3.12 Trends in aircraft noise amelioration

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

Adelaide Airport

Programme outcomes

Private homes insulated

13

220

208

240

4

-

Public buildings insulated

-

-

2

1

2

1

Work rated very good or better by clients

Not reported

90%

88%

83%

100%

n/a

Cost of works to government

$1.9m

$11.1m

$13.2m

$13.9m

$7.6m

$1.3m

Sydney Airport

Programme outcomes

Private homes insulated

474

268

113

12

12

-

Public buildings insulated

3

7

2

1

3

2

Work rated very good or better by clients

not reported

82%

>80%

82%

100%

n/a

Cost of works to government

$37.2m

$24.9m

$7.7m

$3.9m

$6.2m

$3.3m

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Administered programme-Payment Scheme for Airservices Australia's en route charges
(Aviation and Airports Business Division)

Effectiveness

Costs are reduced for airlines providing regular public transport and/or aeromedical services using aircraft with a take-off weight of less than 15 tonnes

This programme helps operators provide services to regional communities by reimbursing them for Airservices Australia's en route air traffic control charges.

A review is to be conducted in 2006-07 into the ongoing need for Airservices en route charges subsidies for regional aviation services, which are due to cease at the end of 2006-07.

Quality

Claims from airlines are processed efficiently and accurately

The turnaround time for invoices is a maximum of seven days from receipt of all information required to process the claim. Payment runs for the department occur weekly.

No complaints were received from recipient operators about the accuracy or timeliness of processed claims during 2005-06.

Quantity

Approximately 40 airlines are reimbursed for Airservices Australia's en route air traffic control charges

The department processed claims from a total of 35 airlines in 2005-06, which is down from 41 last year. The programme is demand driven.

Cost

$5.6m

The actual cost of this programme in 2005-06 was $6.0 million, up from $4.7 million in 2004-05. This was due to some airlines making claims for charges incurred in previous financial years and as a result of the extension of the scheme to an additional category of eligible aircraft in Western Australia only.

Overall performance

Administered programme-Sydney West Airport-rental properties
(Aviation and Airports Business Division)

Effectiveness

The Australian Government meets its obligations as a landlord

The Australian Government owns and leases out 254 commercial and residential properties at Badgerys Creek. The properties are on the site originally acquired for a proposed second major airport for Sydney, and are managed by an agent on behalf of the department.

Quantity/Location

Approximately 254 commercial and residential properties are maintained at Sydney West Airport site (Badgerys Creek)

In 2005-06, costs included water and land rates, and maintenance to ensure properties remain in reasonable condition. There is limited scope to reduce the scale of works given the department's duty of care to tenants and responsibility to keep the assets in good condition.

Cost

2.7m

The actual cost of this programme in 2005-06 was $1.9 million, and was offset by revenue from tenants. In 2006-07 we expect to spend a similar amount on general maintenance.

Overall performance

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