Regional Development Australia Murray is supporting calls for reform to Australia’s regional aviation sector, warning that rising fares, fewer flights and fragile regional services are leaving country communities increasingly isolated.
In a submission to the Senate Inquiry into the State of Australia’s Aviation Sector, the RDA NSW & ACT network says regional aviation is not a luxury: it is an essential service that underpins access to healthcare, education, employment, business and family connection.
The submission argues that a series of recent shocks to the aviation sector, including the collapse of Bonza, Rex Airlines entering voluntary administration, and the consolidation of regional QantasLink crew bases, have worsened long-standing inequities for regional travellers.
“Passenger numbers are recovering in many regional centres post-Covid, but services are not,” said RDA Murray Chair Kylie King who spoke at a public hearing in Albury today. “Communities are facing fewer flights, reduced competition and significantly higher costs.”
Regional Fares Soar Well Beyond Inflation
The RDA NSW & ACT network found airfare increases on some regional routes have far outstripped inflation and significantly exceeded rises on major city routes.
Between 2019 and 2025:
- Airfares between Sydney and Coffs Harbour increased by 289 per cent, rising from around $110 to $428.
- Sydney–Tamworth fares increased by 75.5 per cent, from $270 to $474.
- Sydney–Albury fares rose by 52.2 per cent, from $268 to $408.
By comparison, the Sydney–Melbourne route increased by 35.9 per cent over the same period.
The submission says these disparities reflect a lack of competition on regional routes, high airport operating costs and the growing burden of security and regulatory requirements on smaller airports.
Fewer Flights Despite Strong Regional Demand
The report highlights that many regional centres are losing services despite having large catchments and growing demand.
Wagga Wagga, with a catchment of around 190,000 people, lost 27 weekly flights despite recording an increase in passenger numbers.
Albury, which services a catchment of approximately 195,000 people, experienced an 11 per cent decline in passengers and 10 fewer weekly flights.
Other centres such as Tamworth, Armidale and Broken Hill have also seen significant reductions in both passenger numbers and flight frequency.
The submission warns that reduced services are making it harder for regional residents to access specialist medical care, education, employment opportunities and family support.
In Albury, the loss of direct Melbourne services has already increased the cost of bringing specialist locum doctors into the region, with overnight stays now often required.
Regional Airports Carrying an Unfair Cost Burden
According to the submission, small regional airports face disproportionately high costs to meet federally mandated security and regulatory requirements.
Regional airports are required to fund security screening, staffing and compliance measures, but unlike larger airports, they have far fewer passengers over which to spread those costs.
The submission notes that:
- CASA regulatory costs account for around 12 per cent of expenditure at regional airports, compared with 4 per cent at major airports.
- Around 60 per cent of regional airports operate at a loss.
- Many local councils are forced to subsidise airport operations from ratepayer funds.
The RDA NSW & ACT network is calling for the introduction of a uniform national security levy, which would spread the cost of mandated airport security more evenly across the aviation network.
Calls for Action
The submission makes a number of recommendations to restore confidence in regional aviation and improve affordability and reliability.
Key recommendations include:
- Introducing a national security levy to reduce the burden on small regional airports.
- Expanding government support schemes for regional routes.
- Raising the threshold for regulated NSW air routes.
- Applying equity modelling to identify communities most at risk of losing services.
- Providing ongoing funding to help regional airports maintain infrastructure and meet security requirements.
- Embedding minimum service and reliability standards on key regional routes.
The RDA NSW & ACT network says that without intervention, regional communities will remain trapped in a cycle of rising costs, declining services and reduced economic opportunity.
“Regional aviation is essential to the future of regional Australia,” Kylie King said. “Without reliable and affordable air services, communities will struggle to attract and retain the people, workforce and investment they need to thrive.”
Pictured L-R: Therese O’Dwyer, Kylie King, Bridget McKenzie and Brett Stonestreet
