FLYING KANGA SCROOGE
CASHED- UP QANTAS HOLDS OUT ON CRAMPED AIRPORT UPGRADE
AFTER posting the second biggest profit in its 97- year history yesterday, Qantas is still refusing to support a badly needed upgrade of Townsville Airport.
The Bulletin has learned the terminal is 40 per cent undersized, with operators admitting the cramped and ageing facilities are a “growth inhibitor”.
Virgin has already backed the $ 40 million upgrade and the airport’s owners have committed to pay for it up front, but Qantas is still baulking at a $ 3 passenger charge increase, citing a need to get “the balance right between cost and practicality”.
TOWNSVILLE Airport is bulging at the seams, with an expert report showing the terminal is 40 per cent undersized, and operators admitting the cramped and ageing facilities are a “growth inhibitor”.
As Qantas yesterday unveiled an underlying profit before tax of $ 1.4 billion for the last financial year, its second highest performance in its 97- year history, the national carrier insists a $ 3 passenger charge increase designed to help recoup the costs of the work is too much to pay.
The airport has today launched a public campaign to create a groundswell of support for its redevelopment plans in the wake of stalled negotiations with Qantas.
Townsville Airport has repeatedly said that works on the $ 40 million terminal redevelopment cannot start until airlines agree to a pro- posed passenger charge increase of $ 3 to help recoup costs but Qantas has refused to budge.
A report completed by airport planning consultant Airbiz found that the departure lounge was 40 per cent undersized.
Townsville Airport chief operating officer Kevin Gill said no significant upgrades had been made to the terminal since 2003.
“The total number of passengers moving through the airport has increased by 84 per cent since then,” he said. “The current facility is a growth inhibitor.
“It is becoming increasingly difficult to cater for additional capacity during the airport’s peak times. It is also a poor passenger experience.”
Mr Gill said the Project Alive redevelopment was worth $ 80 million, including the $ 40 million terminal works and $ 40 million of infrastructure works that would be fully funded by Townsville Airport Pty Ltd.
Once the work is completed, Townsville Airport plans to intro- duce an Infrastructure Development Contribution of $ 3 per domestic airfare to recoup the cost of the terminal works.
“Every airline will need to make a contribution to the airport redevelopment because they will all receive major benefits after the project is complete,” Mr Gill said.
“We haven’t reached an agreement ( with Qantas) but we want to resolve this in a timely manner so we can deliver these upgrades, the economic benefits and the jobs. “Virgin Australia has agreed.” The existing passenger charge at the airport is $ 13.20, compared to a rate of $ 19.20 at Darwin Airport.
A Qantas spokeswoman reiterated the airline’s stance it would not agree to the $ 3 charge.
“Between Qantas and Jetstar, we provide 70 per cent of the total seats on flights into the airport, which translates into tourism and jobs for the Townsville community,” the spokeswoman said. “It goes without saying we have an interest in the investments needed to make sure Townsville Airport is a strong regional gateway long into the future.
“We’ve shown we’ll support some improvements, and have consistently said we need to get the balance right between cost and practicality, so the upgrades don’t go beyond what’s required in the short term.”
The campaign, which includes advertising, billboards at the airport and a social media strategy is calling for people to register their support at www.getonboardtsv.com.au
QANTAS’S 25,000 staff around the country had every reason to smile yesterday. Their employer had just booked its second- biggest pre- tax profit in history.
And that meant that, for the second year in a row, every employee would receive a $ 2500 bonus.
It’s a great result, and one which ordinarily would please all Australians.
After all, Qantas is our most cherished company, a brand Aussies value above any other.
Moreover, the carrier’s fightback from the brink of extinction over the past six years has been one of the great corporate comeback stories in our history.
The transformation the company has undergone to emerge as one of the world’s best airlines is nothing short of astonishing. But today there will be some in Townsville at least whose enthusiasm for the Flying Kangaroo will be less effusive. Because here we have seen little of the benefits of the Qantas comeback.
To the contrary. In recent years we have stagnation in services, both in the frequency of routes and in the size of the planes travelling to and from our city.
During this time, our airport, last upgraded in 2003, has taken on an increasingly tired and stale appearance.
The Qantas lounge — tellingly the only one at Townsville Airport — is invariably packed to overflowing, with guests often forced to stand.
Now a report by Airbiz, a world- leading airport planning specialist, estimates our airport lounge is already 40 per cent over capacity for its existing number of passengers. In other words, there is an urgent need for expansion.
The airport’s owner, Queensland Airports Limited, recognised this looming problem years ago and proposed an upgrade that would set the gateway up for the next 20 years’ growth in traffic.
Yet, despite its surging profits, Qantas is steadfastly refusing to support this critical upgrade — on the basis a per- passenger charge of a measly $ 3 is too much for it to bear. This is despite QAL offering to pay upfront for the upgrade and only recouping half the cost from the airlines from 2019.
There has been no increase in airline charges for more than a decade and Townsville charges are among the lowest of comparable airports in the country.
Qantas has argued this is a gold- plating exercise, but the Airbiz report demolishes that assertion.
Qantas is unquestionably a great Australian company, one we should all be proud of. But its stance on Townsville is a stain on its hard- fought reputation.
It should do the right thing and support the Townsville upgrade.