Final Report and Evaluation, 12 March 2021

General Aviation in Australia is in decline and the impact of sustained losses on local government has led to the closure of many regional airfields and the loss of associated socio-economic benefits. This is a global trend and unlikely to abate in the near future as rising costs, operating losses and general aviation activity continue to impact regional aviation.

For regional airports to be sustainable, it is vital to develop detailed economic master plans that councils can utilise to facilitate and promote economic activities at the airport. Regional airport owners should be able to utilise this Airport Economic Master Plan in developing their asset and financial management plans that have a commercial purpose for their airports.

The purpose of this project was to develop an economic development master plan to assist regional councils in the development of financially sustainable airports.

The project used the Kingscote airport, Kangaroo Island as a case study. The airport has recently seen a range of improvements including a brand-new terminal (2018). However, the airport business model has proven to be unsustainable.

The airport master plan viewed the case of Kingscote airport and identified some key economic strategies that can be implemented by the Kangaroo Island Council to establish complementary local activities/industries and facilitating economic activities in the region.

It is expected that the research outcomes for this project can be utilised by other regional councils in the development of their economic and business plans for their airports.

How has the project achieved the intended milestones included in your original application? Please also identify any milestones not achieved and explain the reasons for this?

The following milestones were completed:

Stage 1 - Commencement meetings and site visits:

• Confirmed the scope and goals of the project, and identify and discussed key issues in relation to the project.
• Identified and collected all relevant site and background materials.

Stage 2 - Document and data review in relation to:

• zoning and planning
• existing usage and leases and availability
• Infrastructure (power, water)
• transport.

Stage 3 - Industry Consultation:

• All businesses/organisations are consulted.
• A Draft Consultation Template was prepared to ensure that consistent data and views were sought from all those consulted.

Stage 4 - Economic Development Master Plan:

• Based on Stage 1 – 3, an airport economic development master plan suitable for Kingscote Airport was completed.

How has the project achieved the project outcomes included in your application? Please also identify any outcomes not achieved and explain the reasons for this.

The outcome of this project is the development Airport Development Master Plan for Kingscote airport. The masterplan outlines the steps used to develop an economic masterplan for Kingscote airport and provides regional councils with the tools to develop their own airport masterplan.

The development of the Kingscote airport masterplan identified key economic factors to improve the profitability of the airport through:

• a detailed analysis of socio-economic factors
• stakeholder consultation

Based on the masterplan the Kangaroo Island council should be able to execute clear and concise business action plans that can improve the long-term financial sustainability of the airport.

How have the project outputs/outcomes been disseminated for use by Councils?

The Airport Economic Development Master Plan has been delivered to Kangaroo Island Council and the Airport Management Committee. It has also been disseminated to other regional Councils in South Australia that own and manages airports.

What approach/method did you use to evaluate this project?

The Airport Economic Master Plan has been disseminated amongst regional councils that own and manage airports in South Australia.

What were the outcomes of this evaluation?

Essential information regarding the key economic strategies that can be implemented based on the social-economic factors in the region and stakeholder consultation has been provided to Councils.