Plan remains grounded

TOWNSVILLE Airport says there is no funding back- up plan if Qantas does not agree to a proposed passenger charge increase to recoup funds for its $ 80 million upgrade.

Negotiations between Townsville Airport and Qantas started five years ago over a proposed $ 3 increase to passenger charges intended to recoup half of the funds for the $ 80 million upgrade.

Townsville Airport chief operating officer Kevin Gill said the plans, which include upgrades to the terminal, apron, road network and core infrastructure, had “remained consistent” during the negotiation process.

“We were aware that other regional airports have been treated the same way in the past,” he said.

“However given that Virgin group reached agreement with the airport some time ago, it is disappointing that Qantas group is delaying us.

“It is normal industry practice to adjust passenger charges when major upgrades to infrastructure are needed.”

Asked if the airport had a back- up plan to fund the redevelopment, Mr Gill said no, that “the approach being taken is consistent with any other airport investment plan”.

“Townsville Airport has consulted widely with users on its plans which have been prepared from work completed and reverified by independent experts,” he said. “The longer the delays continue, the greater the need as passenger numbers continue to increase.”

But a Qantas spokeswoman said the national carrier had “always been willing” to support some upgrades.

“We haven’t delayed the redevelopment. The airport has always had the option to fund the upgrades itself,” she said.

“We’ve always been willing to support upgrades that go towards improving the efficiency of the airport but not on the scale proposed by Queensland Airports because of the pres- sure that would put on costs and ultimately the fares that passengers pay. That’s why we put an offer to the airport over a year ago to get these improvements under way.”

Mr Gill said the $ 3 fee would be collected by the airline from the passenger and included in airfares.

“This charge is far less than the increases in airfares which have been seen over the last 12 months,” he said.