Regional Aviation Security Challenges & Opportunities

Checked Bag Screening

OVERVIEW

15 May 07 announcement

100% (ETD) CBS by 1 Dec 07

100% (X-Ray) CBS by 1 Dec 08

Originally impacted 26 regional airports

Now affects 32 regional airports

CBS EquipmentX-Ray EDS Machines:

3m to 5.5m in length

Weigh around 4 tonnes each!

Rationale for CBS

Industry not involved in decision

No threat update to industry

No change in national threat level

Rationale for CBS

How does CBS improve aviation security?

The use of CBS provides an additional layer of security to the multi-layer security approach used at airports throughout Australia.

The introduction of CBS at regional airports allows for screening of baggage that would have previously gone unscreened.

Source: http://www.infrastructure.gov.au/transport/security/aviation/cbs_faq.aspx

Funding for CBS

$15.4m over 4 years

Only for security capital – not for Opex

Percentage funding airports with >500,000 pax, no fundscommenced jets ops May 07, no fundsOnly for security equipmentNo funding for buildings, power, data, etc

Funding for CBS

Capital Cost X-Ray CBS machine cost $0.5m each

32 airports need 32 to 39 machines ($16m to $19m)

Baggage handling average costs $200k ($6.4m)

Explosive Trace Detection $60k each ($1.9m)

Total is between $24 & $28m

Building works range $400k to $3m per site (say extra $15m)

Potential shortfall is $24m to $28m

Non redundancy at some major regional airports, due to airline pressure

Implementation

Enough Time?3 vendors of X-Ray machines30 to 37 machines needed now3 months lead time for machines19 weeks to go

Technical IssuesPowerAir-conditioningTerminal works / modifications

Regulatory Matters

Qld PoliceEmerge Response

QldDept of Premier

CriticalInfrastructure

Council &Building Approval

Qld HealthRadiation Licences

Qld Dept of Justice

Security Licence

O.T.STSP, Audit, etc

AirportCBS Project

Case Studies

1. Port Macquarie Airport

2. Mount Isa Airport

Port Macquarie Airport

Financial Cost of CBS

Case Study 1 - Port Macquarie Airport

Population - 65,000

120,000 pax per annum

1 x Jet service per day

Remainder not screened - no cost recovery

Estimated $19 per passenger CBS cost

What happens if jet service cancelled?

Mount Isa Airport

Financial Cost of CBS

Case Study 2 – Mount Isa Airport

Population - 25,000

160,000 pax per annum

1~2 jet flights a day (2 flights on Mon, Tue, Thu & Fri)

Currently $14 per passenger for screening – 100% X-Ray CBS will add more cost

What happens if jet becomes turboprop?

Turboprop vs. Jet Operations

Competitive Neutrality?

Competitive Advantage / Disadvantage

Rockhampton vs. Gladstone / EmeraldExisting major regionals have cost advantageDifficult for smaller regional airports to compete

Sunshine Coast vs. BrisbaneBrisbane has 7m outbound passengersSunshine coast has 400k outbound paxBoth have same screening requirements

Solutions

Glasgow attack did not target:The airport owners / operatorsThe local community

Attack was aimed at:National levelInternational audienceThe national aviation infrastructure

Solutions

Potential Models:

1. Universal Service Obligation

2. National Aviation Security Provider

e.g. NZ Avsec / US TSA

Solutions

Universal Service Obligation

National price for screening (say $4 per pax)

Airports >$4 receive rebate

Airports <$4 no rebate

Recognises that aviation security involves a broad range of stakeholders that link into an essential national transport network.

SolutionsNZ AVSEC / US TSA Model

Potential Benefits:Consistent security process & outcomeStandardised equipment & training Improved recruitment & retention of staff

Aviation safety services use this model:ATC, ARFF, Met

Government does some aviation securityAFP, Customs, AusCheck

Summary

National aviation infrastructure

Current security regime not perfectDisproportionate burden on regional communities Inhibitor to regional development

Surely we can find a better model?

Summary

“Remote and regional communities, basic services such as public transport and delivery of fresh food, medical supplies, mail, educational materials, and urgent supplies rely on the use of airport infrastructure.”

“Airports gain further importance as entry gates to regions for business and industries that support and encourage ongoing regional and economic development.”

Source: House of Representatives Standing Committee on Transport and Regional Services report “Regional Aviation and Island Transport Services: Making Ends Meet”