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Federal airport screening funding to cease

Published 17th May 2023
Airlines will have to cover the ongoing cost of security screening

airport

Despite extensive lobbying by Whyalla City Council for ongoing Federal funding for regional airport security screening, the Federal Government has maintained its decision to cease screening funding, stating that these costs should be passed on to airlines.

With Council unable to absorb this additional cost, and not wanting to pass it on to all ratepayers, the most appropriate option was to take the Federal Government’s direction and pass it on to the airlines, meaning airlines will have to cover the ongoing cost of security screening once current funding ceases on 1 July 2023.

This impost is expected to cost the average departing passenger about $40 more per ticket.

Mayor Phill Stone said the Federal Government’s approach did not align with their vision of developing the region as a mega green hydrogen hub.

“Security screening was introduced about 18 months ago to meet the Federal Government’s aviation security requirements – with funding provided for the initial implementation – so it’s a major blow for the Federal Government to now cease that ongoing funding,” Mayor Stone said.

“Passing on these costs may be viable for major airports – where the cost per passenger can be heavily diluted – but it has a significant impact on regional airports due to the lower passenger numbers.”

Mayor Stone said Whyalla was one of the lowest-volume airports subject to these requirements, so this additional cost will ultimately impact customers and could lead to a reduction in airline services.

“This will not only be to the detriment of the community, but also the Federal and State Governments’ major development plans for our city, with Treasurer Jim Chalmers only recently mentioning Whyalla’s importance to Australia’s green hydrogen future during his budget speech,” he said.

“If the Federal Government genuinely values the security and future prosperity of Whyalla and the region, it’s critical they reconsider this decision.  The disproportionate financial and service level impacts on regional communities arising from security screening is incredibly disappointing.

“We will continue to lobby the Federal Government for support to ensure our airport is best positioned to cater for the imminent local boom in construction, industry and population, and enable cost effective airport transport accessibility for our local and regional communities.”