Please note:  These minutes are yet to be confirmed as a true record of proceedings

CITY OF BUSSELTON

MINUTES OF THE Airport Advisory Committee MEETING HELD ON 20 October 2021

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, acknowledgement of country and Announcement of Visitors. 2

2....... Attendance. 2

3....... ELECTION OF PRESIDING MEMBER and DEPUTY presiding member. 3

4....... Public Question Time. 3

5....... Disclosure Of Interests. 3

6....... Confirmation Of Minutes. 4

6.1          Minutes of the Airport Advisory Committee Meeting held 18 August 2021. 4

7....... Reports. 5

7.1          BUSSELTON MARGARET RIVER AIRPORT OPERATIONS UPDATE. 5

7.2          BUSSELTON MARGARET RIVER AIRPORT - REVIEW PROCESS FOR THE NOISE MANAGEMENT PLAN.. 11

8....... General Discussion Items. 81

8.1          BUSSELTON AERO CLUB PROPOSAL. 81

7....... Reports. 82

7.3          BUSSELTON MARGARET RIVER AIRPORT - BUSINESS DEVELOPMENT UPDATE. 82

8....... General Discussion Items. 91

8.2          BUSSELTON MARGARET RIVER AIRPORT TERMINAL UPDATE. 91

9....... Next Meeting Date. 91

10..... Closure. 91

 


Airport Advisory Committee                                            4                                                                  20 October 2021

MINUTES

 

MINUTES OF THE Airport Advisory Committee HELD IN THE Committee Room,

Administration Building, Southern Drive, Busselton, ON 20 October 2021 AT 9.30am.

 

1.               Declaration of Opening, acknowledgement of country and Announcement of Visitors

Mrs Naomi Searle, Director, Community and Commercial Services opened the meeting at 9.27am.

 

Mrs Searle noted the meeting is held on the lands of the Wadandi people and acknowledged them as Traditional Owners, paying respect to their Elders, past and present, and Aboriginal Elders of other communities who may be present.

 

2.               Attendance 

Presiding Member:

 

Members:

 

Cr Phill Cronin (from 9.32am)

 

Cr Paul Carter

Cr Jodie Richards

Cr Anne Ryan

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mrs Naomi Searle, Director, Community and Commercial Services

Ms Jennifer May, Manager Economic and Business Development Services

Mr David Russell, Airport Operations Coordinator

Ms Melissa Egan, Governance Officer

 

Apologies:

 

Nil

 

Public:

 

3


 

3.               ELECTION OF PRESIDING MEMBER and DEPUTY presiding member

In accordance with Delegation S1 – 26 ‘Committee Elections’, Mrs Searle called for nominations for the position of the Presiding Member of the Airport Advisory Committee.

 

Cr Carter nominated Cr Cronin for the position of Presiding Member. Cr Cronin accepted the nomination.

                                                        

Cr Richards nominated Cr Ryan for the position of Presiding Member. Cr Ryan accepted the nomination.

 

Mrs Searle called on Cr Cronin and Cr Ryan to present their cases to the Committee for the position of Presiding Member of the Airport Advisory Committee.

 

Cr Cronin and Cr Ryan gave brief presentations to the Committee.

 

A vote was conducted for the election of the Presiding Member:

 

·         Cr Phill Cronin – 2 votes

·         Cr Anne Ryan – 2 votes

 

With the results of the vote being tied, Mrs Searle placed the names of Cr Cronin and Cr Ryan into a ballot box and withdrew one name.

 

Cr Cronin was elected as Presiding Member of the Airport Advisory Committee.

 

9.32am:                At this time, Cr Cronin assumed the Chair.

 

The Presiding Member called for nominations for the position of Deputy Presiding Member of the Airport Advisory Committee.

 

Cr Carter nominated Cr Ryan for the position of Deputy Presiding Member. Cr Ryan accepted the nomination.

 

With no other nominations received, Cr Ryan was elected as Deputy Presiding Member of the Airport Advisory Committee.

 

4.               Public Question Time

Nil

 

5.               Disclosure Of Interests

   Nil

6.               Confirmation Of Minutes

6.1             Minutes of the Airport Advisory Committee Meeting held 18 August 2021

Committee Decision

AIR2110/065          Moved Councillor P Carter, seconded Councillor P Cronin

That the Minutes of the Airport Advisory Committee Meeting held 18 August 2021 be confirmed as a true and correct record.

CARRIED 3/1

For the motion: Cr Carter, Cr Cronin, Cr Richards

Against the motion: Cr Ryan

 

 

9.53am:                At this time, Mr Archer left the meeting.

 

9.56am:                At this time, Mr Archer re-entered the meeting.

 

9.55am:                At this time, Mr Archer left the meeting.

 

10.09am:              At this time, Mr Archer re-entered the meeting.

 

 


Airport Advisory Committee                                            6                                                                  20 October 2021

7.               Reports

7.1             BUSSELTON MARGARET RIVER AIRPORT OPERATIONS UPDATE

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy.

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Airport Operations Coordinator - David Russell

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

Committee Recommendation

AIR2110/066          Moved Councillor A Ryan, seconded Councillor P Carter

That the Council receives and notes the Airport Operations Report and requests that the Chief Executive Officer investigates the potential for recreational helicopter flights to operate from the Busselton Jetty.

CARRIED 4/0

Reasons:     Committee recommended that the Chief Executive Officer investigate the potential for recreational  helicopter flights to operate from the Busselton Jetty.

 

OFFICER RECOMMENDATION

That the Council receives and notes the Airport Operations Report.

 

EXECUTIVE SUMMARY

This report provides an overview of the operations and activities of the Busselton Margaret River Airport (BMRA) for the reporting period 1 July 2021 - 30 September 2021. This includes an update on passenger numbers, aircraft landings, and actions relating to COVID-19 and general airport operations.

 

BACKGROUND

The July – September 2021 quarter focused on operational aspects such as apron management, passengers flow through the terminal and car parking as a result of increased FIFO services, preparation for the bi-annual emergency exercise held on 16 October 2021 and the upcoming RAAF / BMRA open day.

 

As a result of the COVID-19 pandemic, and Federal and State Government restrictions, the launch of Jetstar’s Melbourne to Busselton RPT services have been deferred with a revised commencement date of mid-February 2022, dependent on COVID-19 travel and interstate border restrictions being lifted.

Aircraft Movements

The total number of FIFO services using BMRA is currently 20 flights (40 movements) per week, up 5 flights (10 movements) from the last quarter. Currently, there are four airlines operating from the BMRA utilising the F70, F100, A320 and Dash 8 aircraft.

 

The total number of aircraft landings declined in July (125) compared to July 2020 (161) and increased in August (203) compared to August 2020 (171). September figures are estimated to be 250 landings compared to 203 for the same period last year.

 

Passenger Numbers

The July – September 2021 quarter has seen an increase of passenger numbers of 11,936 compared to the same period last year of 9,001. This can be attributed to an increase in the overall number of fly-in-fly-out (FIFO) passengers.

 

Carpark

There are currently 1,025 car park patrons using the FIFO swipe card system, with an average of 361 vehicles utilising the public car park per day in September 2021, with the highest number of vehicles parked on one day at 378 vehicles recorded on 22 September out of an available 422 bays. With RPT services commencing in early 2022, these car parking numbers show the need to expand public car parking at the BMRA. Officers have commissioned a car park design and costings to be considered by Council. 

 


 

Operations

The focus for the reporting period has been on:

·        The continued operational readiness for Jetstar’s Melbourne to Busselton RPT service for commencement in the new year.

·        Preparation for the RAAF/BMRA open day to be held on 7 November 2021.

·        Bi-annual emergency field exercise held on 16 October 2021.

·        EOI for hangar leases in the general aviation precinct.

·        Noise Management Plan review.

·        Preparation of capital works for the central apron expansion and relocation of the RFDS/St John patient transfer station.

·        Car park operations due to increased passengers.

 

BMRA – Helicopter operations

In September 2021, City officers were approached by Ballina Corporation P/L trading as KAS Helicopters with a proposal to operate helicopter scenic flights from the Airport.

 

KAS Helicopters, founded in 2007, has grown from one helicopter used primarily for helifishing, to today’s multi-base, multi-aircraft operation with their head office and hangar facilities in Derby and a secondary base established in Broome in 2012. They currently operate a fleet of modern, well-maintained piston and turbine aircraft and are approved contractors for organisations including DFES, Telstra, Mt Gibson Iron, RFDS, Kimberley Land Council and many others. They are now seeking approval to expand their operations to Busselton and the South West to cater for the growing tourism market and for domestic helicopter charters.

 

The KAS Helicopters proposal is to operate a Robinson R44 aircraft that can carry up to 3 passengers and pilot at any one time, with the option to operate a Bell Long Ranger carrying 6 passengers and pilot should demand required.

 

Their proposal is requesting approval for the following:

•          Operations for Monday – Sunday, 8am- 6pm.

•          Access to the grassed General Aviation parking area, located in front of the central apron hangers.

•          Operations to commence from 1 December 2021.

 

The proposal includes each flight estimated to be at no less than 20 minutes, and takes into account fly neighbourly obligations, noise abatement procedures, BMRA Conditions of Use and the Noise Management Plan (NMP). The proponents are confident that they can operate in accordance with the conditions set out within these documents.

 

In principle, officers support the concept of increasing tourism opportunities and activities at the BMRA which not only benefits the Airport with revenue raised from landing fees but also has the potential to increase tourism offerings in the region.

 

Currently, BMRA sees a number helicopter operations from emergency services, businesses and private operators that are not based at BMRA, managed successfully through the NMP, Airport Local Law 2012 and Property Local Law 2010. In November 2018, officers completed an EOI for Helicopter operations at the BMRA with the following recommendation being endorsed by the Airport Advisory Committee (AIR1811/050):

That the Airport Advisory Committee:

1.         Notes the outcome of the ‘Busselton Margaret River Airport - Tourist Helicopter Operations Commercial Opportunity’ Expression of Interest process.

 

2.         Notes the ongoing management of the Busselton Margaret River Airport in accordance with the Noise Management Plan, Airport Local Law 2012 and Property Local Law 2010.

 

Acknowledging the previous resolution, City officers are recommending that the CEO determine the terms and conditions and issue a permit approving the KAS Helicopter operations based from BMRA in accordance with the NMP, Airport Local Law 2012 and Property Local Law 2010, where permit conditions could include:

·        Maximum number of flights per day.

·        Start and finish times of flights.

·        Minimum duration of flights.

·        No scenic flights allowed on certain public holidays.

·        Flight paths to be used agreed with the City of Busselton.

·        Monthly reports to be provided to the City of Busselton on all scenic flights conducted including times of operation and duration of flights.

·        Request minimum flight heights over residential areas.

                            

City officers will work with KAS Helicopters to progress this application for a permit to operate from BMRA.

 

Domestic Airports Security Costs Support Program (DASCS)

City officers reported at the last Airport Advisory Committee meeting that the City of Busselton was invited to apply and was accepted for the DASCS grant funding program earlier in the year.

 

The DASCS Program will reimburse grantees for eligible costs associated with passenger and baggage security screening operations required under the Regulations, with a maximum grant amount for the BMRA totalling $100,000.

 

The City of Busselton is now ineligible for this funding as the first RPT service has been delayed until after the extended cut-off date of 31 December 2021.

 

Alternate International Airport

As reported at the last Airport Advisory Committee meeting, Aviation Projects has been engaged to further assess the opportunity of BMRA being designated an alternate international airport with selected international airlines.  While feedback from airlines to date has been positive, the current environment as a result of the COVID-19 pandemic is proving difficult to proceed with detailed discussions on the opportunity. Staffing numbers across all airlines have reduced and personnel are often changing roles meaning previous dialogue undertaken is continuously being undertaken with newly appointed personnel.  In addition to this, it is uncertain when international borders will re-open.  Based on this, it is recommended that discussions are placed on hold for 6-12 months until the industry has more certainty on its future and more meaningful discussions can be held.


 

Regular Passenger Transport (RPT) services

Officers have been liaising with an aviation consulting firm engaged by the City of Kalgoorlie-Boulder to assess the opportunity for RPT services between Kalgoorlie and Busselton. The City is supporting the assessment through the provision of information and dissemination of passenger surveys.

OFFICER COMMENT

FIFO passenger numbers through the BMRA have continued to increase significantly in comparison to the same period last year, and officers expect passenger numbers to continue to increase as FIFO employment recruiting from the South West continues. The 40 aircraft movements (20 flights) per week equate to 28 movements for RioTinto (Virgin Australia), 4 for FMG (Qantas Group), 4 for BHP (Alliance Airlines) and 4 for Northern Star Resources (Maroomba Airlines).

 

The additional resource sector companies commencing services from BMRA, together with Busselton –Melbourne RPT services once commenced, will see passenger numbers continue to increase this financial year to potentially 60,000-70,000 passengers.

 

Officers continue to liaise regularly with Jetstar executives and operations teams for the commencement of the Busselton-Melbourne flights now expected in February 2022. BMRA is operationally ready to commence RPT services with the exception of the security screening contractor’s team who need to be redeployed and complete final training.

 

Officers are continuing to liaise with the RAAF regarding the RAAF centenary which occurred on 31 March 2021. Officers are planning to host a BMRA Open Day on 7 November 2021 for the community to come and view the upgraded Airport facilities, and have taken the opportunity to invite the RAAF to celebrate their centenary at the same time. Officers will also invite the Busselton Aero Club to participate in the open day by hosting a general aviation ‘fly in’ and ground display of recreation and general aviation aircraft.

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139 (Aerodromes)

·        City of Busselton Transport Security Plan

·        Ministerial Statement 1088

·        City policies and procedures

 

Relevant Plans and Policies

The BMRA operates under the Busselton Margaret River Airport Noise Management Plan 2019.

 


 

Financial Implications

Airport revenue up to the end of September 2021 was $461,351 compared to the amended year to date budget of $552,808. The reason for revenue being less than expected is due to outstanding Virgin Australia Regional Airline’s (VARA) passenger fees estimated at $90,000 for August and September, with landing fees and car park revenue higher than expected due to additional FIFO flights.

Expenses (excluding screening services, depreciation and airline attraction) to September 2021 is $160,771 compared to the amended budget of $210,642. Lower expenses are attributed to delays in consultancy expenses.

Stakeholder Consultation

Consultation has been occurring on a regular basis with Department of Transport, Government agencies, airport stakeholders, Department of Home Affairs, Aviation Marine Security (AMS), Civil Aviation Safety Authority (CASA), Air Services Australia, Virgin Australia Regional Airline, Qantas Group, the Busselton Aero Club, Albany, Esperance, Geraldton Airports and Australian Airports Association, concerning many topics and issues relating to the Airport.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 

Options

As an alternative to the proposed recommendation, Council may choose not to receive and note the Airport Operations Report.

CONCLUSION

Officers will continue to provide a high level of customer service and ensure the airport is compliant, safe and security is maintained throughout.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Airport Advisory Committee                                            20                                                               20 October 2021

7.2             BUSSELTON MARGARET RIVER AIRPORT - REVIEW PROCESS FOR THE NOISE MANAGEMENT PLAN

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy.

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Executive: Substantial direction setting, including adopting budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   BMRA Noise Management Plan 2019

Attachment b    Ministerial Statement 1088  

 

Committee Recommendation

AIR2110/067          Moved Councillor P Carter, seconded Councillor J Richards

That the Council notes:

1.         The process to review the Busselton Margaret River Airport Noise Management Plan as required by Ministerial Statement 1088 as outlined in this report incorporating assessment of the following:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

(c)       Number of complaints received and actions taken to resolve complaints;

(d)       Published flight paths to minimize impacts; and

(e)       The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan, and whether amendments to the Plan are required.

2.         Where amendments to the Noise Management Plan are required, a draft Noise Management Plan will be brought back to Council prior to undertaking public consultation and seeking public comment.

CARRIED 4/0

 


 

OFFICER RECOMMENDATION

That the Council notes:

1.         The process to review the Busselton Margaret River Airport Noise Management Plan as required by Ministerial Statement 1088 as outlined in this report incorporating assessment of the following:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

(c)       Number of complaints received and actions taken to resolve complaints;

(d)       Published flight paths to minimize impacts; and

(e)       The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan, and whether amendments to the Plan are required.

2.         Where amendments to the Noise Management Plan are required, a draft Noise Management Plan will be brought back to Council prior to undertaking public consultation and seeking public comment.

 

EXECUTIVE SUMMARY

This report provides an overview of the review process for the Busselton Margaret River Airport Noise Management Plan, of which the results are to be submitted to the CEO of the Office for the Environmental Protection Authority by 7 April 2022.

 

BACKGROUND

The concept of a Noise Management Plan (NMP) for the Busselton Margaret River Airport (BMRA) was first initiated in 2009 when environmental consulting firm Strategen was engaged to prepare a draft NMP. This was in response to the first fly in-fly out (FIFO) services commencing at the then Busselton Regional Airport and the need to address the restrictive hours of operations and conditions specified in Ministerial Statement 399 as approved by the Minister for the Environment (October 1995). The key elements of Statement 399 that the then Shire of Busselton was looking to revise and seek approval from the Office of the Environmental Protection Authority (OEPA) and Minister for the Environment were:

 

4.1       The proponent shall ensure that noise emissions from the aerodrome, including emissions from aircraft using the aerodrome, are effectively managed.

 

4.2       To achieve the objectives of condition 4.1, at all times during the operation of the aerodrome, the proponent shall ensure that noise emissions from the aerodrome activities, including emissions from aircraft using the aerodrome, do not cause noise levels at any residential premises in occupation to exceed an average of 55 dB(A)Ldn or a maximum of 65 dB LA slow, unless a specific variation to the maximum noise level is agreed to by the Minister for the Environment on advice of the Department of Environment and Conservation and following consultation with relevant agencies.

 

4.3       Where a variation has been granted by the Minister for the Environment, as referred to in condition 4.2, the variation may only apply for operation between 0700 hours and 2200 hours, and the proponent shall ensure that the maximum noise level does not exceed 80 dB La slow and that the number of flights is limited.

 

A variation, described in condition 4.3, had been granted by the Minister for the Environment to allow two (2) flights per day between the hours of 0700 and 2200 with aircraft noise to be limited to 80 dB(A) to enable the first Skywest Airlines Fokker100 FIFO operations to commence.

 

The draft NMP was further developed by the Airport Advisory Group (AAG) and in July 2010 was presented to the Council for consideration. Furthermore, at this time the AAG was transitioned to an official committee of the Council, the Airport Advisory Committee (AAC), with four nominated Councillors. In October 2010, the newly formed AAC requested City staff to review and update the draft NMP (developed by the AAG) and present a final draft to the Council for endorsement prior to being submitted to the OEPA for consideration. A final draft version of the NMP was presented to the Council for endorsement on 15 December 2010, followed by submission to the OEPA on 1 February 2011.

 

A lengthy consultation period occurred with the OEPA, including a public consultation period, prior to a final NMP being submitted to the OEPA Board for consideration and referral to the Minister of the Environment; Water for approval. The City of Busselton’s Noise Management Plan (June 2012) was approved as part of Ministerial Statement 901 on 22 June 2012.

 

In accordance with Condition 4 of Statement 901, the City of Busselton had the opportunity to review and submit proposed amendments or updates to the NMP. Following Council endorsement at its meeting on 28 August 2013, City Officers submitted a proposed amended NMP to the OEPA for assessment in September 2013. The OEPA assessment resulted in the proposed amendments being resubmitted by the City of Busselton in March 2014 and following further discussions with the OEPA, the City of Busselton submitted a final revised version of the NMP in December 2014, which came into effect in July 2015.

 

In June 2015, the State Government committed to funding the upgrade of the BRA which required environmental approvals from the Minister of the Environment; Heritage. The environmental approvals required the City to undertake a full review of the NMP (2015) resulting in in the draft NMP (2016) that was then advertised for public comment in March 2016. Following Council consideration of the public submissions received and endorsement of the draft NMP (2016), the City applied to OEPA to amend the proposal description as described in Ministerial Statement 901 and submit the revised draft NMP (2016) that would allow for proposed interstate and international jet air services resulting from the State Government funded Airport Development Project. Following extensive consultation with the OEPA, the City was notified in November 2016 that the level of environmental assessment for the BMRA Development Project (the Airport Expansion Proposal) was to be a Public Environmental Review (PER).

 

The determination for a PER referral process for the operational components of the Development Project provided a further opportunity for the City to review the draft NMP (2016) and incorporate comments and feedback received from the community and airport stakeholders resulting in the draft NMP (2017). The 2017 version included changes to the Standard Hours of Operations, Flight Training Guidelines and Noise Amelioration Criteria which was then advertised for public comment, in addition to extensive noise modelling, flight path analysis and community consultation. Following Council endorsement of the draft NMP (2017) the City submitted a draft Environmental Review Document (ERD) including the draft NMP (2017) and public submissions to the OEPA for review and comment as part of the PER process. Following considerable engagement with the OEPA, the amended NMP was approved on 27 December 2018 (version 1 May 2018) in accordance with Ministerial Statement 1088 by the Minister for Environment; Disability Services.  Subsequent to this a number of minor, non-material amendments were made to the NMP in early 2019, resulting in the current version of the NMP (version 2 January 2019).

 


 

The current version of the NMP (Attachment A) has been in place for just under three years and has enabled the City to manage the BMRA operations effectively. In accordance with Statement 1088, the Airport team are required to monitor and report to the OEPA any operational non-compliances, which may include aircraft movements outside of the approved operating hours, any unauthorised flight training, and aircraft noise breaches.  As part of this process, the City is required to submit annual compliance reports outlining the effectiveness of the NMP to the OEPA. 

 

In August 2021, the Department of Water and Environmental Regulation undertook a desktop compliance audit of the Airport Expansion Proposal to verify the City of Busselton’s compliance with the implementation conditions of Ministerial Statement 1088. The Compliance Audit Report detailed the compliance status of each implementation condition and determined that the City of Busselton demonstrated an acceptable level of compliance with the implementation conditions of Statement 1088. Two implementation conditions relating to the review of the NMP were not reported on as they are not required to be completed until April 2022, one being the review of the NMP.

 

Statement 1088 not only includes the conditions for managing noise emissions from the BMRA but also the requirements for the review of the NMP. Condition 6 Review of NMP, included in Statement 1088 outlines the following:

 

6-1      Within three months of each three year period, from the date of issue of this Statement, the proponent shall submit a report to the CEO which reviews the effectiveness of the Busselton Margaret River Airport Noise Management Plan 2018 (version 1, May 2018) or any subsequent approved versions, in achieving the objective of condition 5-1.

 

6-2      The report required by condition 6-1 shall include, but not be limited to:

1)        Noise monitoring results;

2)        Noise amelioration assessments and/or implementation;

3)        Number of complaints received and actions taken to resolve complaints;

4)        Published flight paths to minimize impacts; and

5)        The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan 2018 (version1, May 2018) or any subsequent approved revisions, and whether amendments to the Plan are required.

 

Further, ‘Chapter 9.2 Review Process’ of the NMP details the process which is to be undertaken every three years in conjunction with the AAC (or its equivalent replacement at any future time).  The NMP states that the review will be undertaken in consultation with key stakeholders, including the community, industry, government agencies, and airport users.

 

The results of the review and any proposed changes to the NMP are then to be advertised for public comment in the local newspapers following Council's consideration of the recommended changes.  It is noted that proposed amendments to the NMP may require approval under the Environmental Protection Act 1986 or other relevant Acts depending on the extent of the proposed changes.

 

This report outlines the proposed process to undertake the review.

 


 

OFFICER COMMENT

It is proposed the review process of the NMP will take into consideration:

 

·        How the development opportunities for the airport have been pursued;

·        Whether the flight paths and noise abatement zones need updating;

·        Whether the standard hours of operation need to be adjusted;

·        How well noise emissions associated with the airport have been managed, which will include consideration of noise monitoring data, complaints statistics and compliance information; and

·        The review will also include a review of the Fly Neighbourly Agreement and the Flight Training Guidelines.

 

Under Statement 1088, the requirement to report to the CEO of the OEPA on the review of the NMP is to be submitted prior to 7 April 2022. Taking into consideration the criteria outlined in Statement 1088 and the NMP, officers propose the following activities be conducted as part of the review and form the basis for a report to be submitted to the OEPA:

 

1)    Noise monitoring

The City’s Environmental Health department recently completed noise monitoring in August- September 2021 at two locations in the vicinity of the BMRA; one directly to the north and one south of the runway. The noise loggers were positioned to capture aircraft arrivals and departures for both Fokker100 (F100) and A320 aircraft. At the time of the monitoring there were 16 scheduled closed charter flights per week using jet aircraft, of which only two flights per week were using A320 aircraft.  Currently 20 closed charter services are in operation.  As the F100 aircraft has been the most commonly used aircraft for closed charter operations over the past 10 years the City has a good sample of F100 aircraft noise data, however the A320 aircraft has been a relatively recent addition to operations and hence there is limited noise data. The recent noise monitoring only captured three A320 flights in total, hence further noise monitoring will need to be completed for the review. Officers are working with the City’s Environmental Health Department and an external consultant to conduct additional noise monitoring ensuring that a good representative sample of A320 aircraft noise data is captured. This will be easier to achieve from late October as there will be four A320 scheduled flights operating per week.

 

2)    Noise amelioration assessments and/or implementation

Review any noise assessments and / or amelioration works that the City has undertaken in the past three years. 

 


 

3)    Non-compliances and Complaints

In accordance with the NMP and Statement 1088, the City is required to report any non-compliances within seven days of identifying the non-compliance and the resulting action taken by the City. The City also reports all non-compliances and complaints in an annual compliance report. To date the City has reported the following:

 

Year

# Non-compliances reported

Summary resulting actions

OEPA further action

# complaints

17/18

4

All operators contacted and informed of non-compliance

No

8

18/19

3

All operators contacted and informed of non-compliance

No

8

19/20

2

All operators contacted and informed of non-compliance

No

 

 

3

20/21

4

All operators contacted and informed of non-compliance

No

7

 

4)    Flight Paths and noise abatement zones

New flight paths were designed and implemented for the commencement of RPT services and use of the larger A320 aircraft. As RPT flights are yet to commence, the use of the new flight paths is not mandatory and is at the discretion of pilots. A review with closed charter airlines (VARA) who have been voluntarily utilising the flight paths will be undertaken with a view to determining whether the flight paths need refining. A review of the BMRA noise contours could also be undertaken at this time.

 

It is also proposed that a review of the residential areas surrounding the BMRA will be undertaken to inform whether the noise abatement zones need updating, particularly as there has been growth and release of residential land for development such as Via Vasse and Provence since the implementation of Statement 1088.

 


 

5)    Hours of Operations

The standard hours of operations (below) will be reviewed in conjunction with points 1-3 above to determine whether there is justification to extend the hours of operations for either all aircraft categories or specific categories.

 

 

6)    The Noise Management Plan document

The NMP document is a lengthy and wordy document that was prepared at a time when history and context for the plan was necessary. The NMP has now been in place since 2012 and officers are of the view that a condensed version, incorporating the key criteria for managing noise emissions at the BMRA could be implemented. The key criteria that would continue to be included could be:

 

·        Hours of operation

·        Flight training

·        Fly neighbourly agreement

·        Noise complaints process

·        Noise amelioration criteria and process

·        NMP review

 


 

7)    Consultation

The NMP has been updated a number of times since its initial implementation. Each iteration of the NMP has involved significant public and community engagement and input. The NMP review process also requires consultation with the Airport Advisory Committee, the Council and the community should be included in any review.

 

Further discussion is detailed in the stakeholder consultation section of this report, however officers propose that the results from the review, the revised draft NMP and public consultation activities are presented to the AAC for review and input, prior to being considered for public consultation by Council. A public consultation process could include, but not be limited to, inviting submissions through the City’s Your Say Website, advertising in the local media, meeting(s) of the Airport Stakeholder Reference Group, community access sessions for specific residential areas, as well as general community access sessions.

 

Statutory Environment

The BMRA Noise Management Plan (version 2 January 2019) was approved by the then Minister for the Environment; Disability Services after review and consideration by the Environmental Protection Authority. Compliance reporting and review of the NMP is defined under Ministerial Statement 1088; Busselton Margaret River Airport Expansion (Attachment B).

 

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plan or policy:

·        Ministerial Statement 1088

·        Busselton Margaret River Airport Noise Management Plan (version2 January 2019)

·        Busselton Margaret River Airport Compliance Assessment Plan (Version 2) (CAP) (23 September 2019)

 

Financial Implications

The financial implications associated with completing a review of the NMP include engaging an external consultant to complete the analysis of noise monitoring data. A quote to complete this work has indicated an approximate cost of $12,000 to $15,000, which can be funded from the Airport Operations consultancy budget. Other expenses include staff time, advertising in the local media and preparation of materials and printing for public consultation, all of which can be funded from the Airport Operations budget. It is not known whether the BMRA noise contours will need to be updated and as such there is no budget allocation in the 2021/22 adopted budget for this. However, should this be required a budget amendment report will need to be considered by Council.

 


 

Stakeholder Consultation

The following public consultation activities are proposed as part of the NMP review process.

 

Who

Forum

Description

BMRA airline users

Individual meetings

·    Discuss use of flight paths

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

BMRA general aviation users

Individual meetings

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

Community comment – Draft revised NMP

Local Media; Your Say; City and BMRA website

 

·    Results of review

·    Draft revised NMP

·    Flight paths

·    Noise contours

Residents in vicinity of the Airport and/or near flight paths including:

·    Reinscourt

·    Yalyalup

·    Kalgup

·    Yoogarillup

 

By invitations for community access meeting

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

 

 

Community information sessions (All information sessions open to all community members)

Community information session

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

·    Information on how to comment/make a submission

Community (Circulation approx. 14,000 residents)

Bay to Bay newsletter

·    General Information

·    Link to website/ Your Say

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation, the Council could request alternate activities be undertaken as part of the NMP review process.


 

CONCLUSION

The current version of the NMP has been in place for just under three years and has enabled the City to manage the BMRA operations effectively. In accordance with Statement 1088, the City is required to monitor and report to the OEPA any operational non-compliances which may include aircraft movements outside of the approved operating hours, any unauthorised flight training and aircraft noise breaches and submit annual compliance reports outlining the effectiveness of the NMP.  The City has completed its mandatory compliance reporting over the past three years and, in accordance with Statement 1088, is required to undertake a full review of the NMP and report its effectiveness to the CEO of the OEPA. Both Statement 1088 and NMP outline the criteria for consideration in completing this review. This report outlines the criteria for consideration and process to be completed, including stakeholder and community consultation and recommends Council notes the review process prior to submitting a report to the OEPA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers have commenced reviewing the NMP (2019) and will commence consultation with airlines and aviation users of the BMRA throughout November and December. Additionally, officers have commenced planning for further noise monitoring to be conducted which is expected to also take place during November and December. A report will be presented to the AAC in December 2021 outlining the review process, monitoring results, and a revised draft NMP for consideration. Once endorsed by Council the draft NMP will be used to undertake public consultation and seek public comment. The City is required to report to the CEO of OEPA on the findings of the review of the NMP by 7 April 2022.

 


Airport Advisory Committee

22

20 October 2021

6.2

Attachment a

BMRA Noise Management Plan 2019

 





















































Airport Advisory Committee

80

20 October 2021

6.2

Attachment b

Ministerial Statement 1088

 









Airport Advisory Committee                                            87                                                               20 October 2021

10.28am:              At this time, the Presiding Member agreed that item 8.1 ‘Busselton Aero Club Proposal’ would be moved forward for the benefit of external parties in attendance to present on the item.

 

8.               General Discussion Items

8.1             BUSSELTON AERO CLUB PROPOSAL

Mr Zeb Packard-Hair presented a history of the Busselton Aero Club and its involvement in the Busselton Margaret River Airport.

 

Mr Packard-Hair provided an overview of a proposal to grow the Club, incorporating the construction of a new clubhouse and hangars in the new General Aviation precinct. To facilitate this, the Club seeks a 5 year extension of their lease at their current premises to enable security of tenure while they progress their proposal. A detailed proposal and request for support will be formally provided to the City. 

7.               Reports

7.3             BUSSELTON MARGARET RIVER AIRPORT - BUSINESS DEVELOPMENT UPDATE

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

Committee Recommendation

AIR2110/068          Moved Councillor P Carter, seconded Councillor P Cronin

That the Council notes the business development update report and endorses:

1.         The marketing and advertising of the Industrial and Commercial Request For Proposal to a maximum of $12,000, to be funded from the 2021/22 Airport Operations budget.

2.         The submission of an application to the Regional Economic Development Grant Scheme Round Four for $135,000 to be matched by the City for the construction of a general aviation hangar for the purposes of entering into a commercial lease with an aviation maintenance and servicing operator. 

CARRIED 4/0

 

OFFICER RECOMMENDATION

That the Council notes the business development update report and endorses:

1.         The marketing and advertising of the Industrial and Commercial Request For Proposal to a maximum of $12,000, to be funded from the 2021/22 Airport Operations budget.

2.         The submission of an application to the Regional Economic Development Grant Scheme Round Four for $135,000 to be matched by the City for the construction of a general aviation hangar for the purposes of entering into a commercial lease with an aviation maintenance and servicing operator. 

 

EXECUTIVE SUMMARY

This report provides an update on the business development activities for the Busselton Margaret River Airport (BMRA) and outlines the proposed activities over the coming months to capitalise on the potential aviation and economic opportunities and benefits the BMRA can provide to the region.

 


 

BACKGROUND

The City of Busselton’s Economic Development Strategy identifies the development of aviation related industries as an emerging industry base and as an opportunity to diversify the region’s economy. The City’s aim is to encourage and attract investment in the Busselton Margaret River Region through the aviation industry as it will provide employment benefits, attract additional investment and trade for local suppliers, and influence decisions of other businesses to relocate or set up in the region.

 

One of the key aims of the BMRA business unit is to develop the BMRA as a hub for air services by encouraging new competitors to operate from the BMRA, including airlines, freight services, charters and fly in fly out operations, and by stimulating new air routes to new destinations.

 

In December 2020, officers presented a report to Council outlining the key business development activities for the BMRA which included the below activities, with the priority focus on BMRA interstate route development (Sydney services) and progression of the industrial and commercial precinct to attract investment:

Product/Service

Description

Actions

Timeline

Revised Timeline

BMRA Route Development

·      Interstate RPT domestic services (Melbourne, Sydney, Brisbane)

·      Intrastate FIFO closed charter operations 

·      Intrastate RPT domestic services (Port Hedland, Karratha, Broome, Newman)

·      International RPT services (Singapore)

·      Develop business case for Sydney and Singapore services with State Government (TWA)

·      Continue to promote the BMRA as a FIFO regional base to mining /resource sector (Rio Tinto, BHP, FMG, CME)

·      Negotiations with airlines

·      Federal Govt approvals (Home Affairs, Border Force) 

2021

2021/2022

Alternate landing Site

·      Alternate airport for international airlines to Perth Airport in the event of inclement weather and/or closure

·      Business analysis to provide the service including airline pricing structure, aircraft infrastructure and aviation firefighting and rescue services  

·      Quantify the requirements and costings for the City to provide a full alternate landing site facility

·      Prepare an appropriate  pricing structure for charging international airlines for using BMRA

Dec 2020 – January 2021

Re-engage April 2022

General Aviation

 

34 lots Code B

·      Various sizes, with capacity to combine land lots

·      Fully serviced lots for lease with Code B apron access.

·      GA focus

·      Option 1  -  advertise and market lease opportunities

·      Option 2  -  prepare business case for Council to lease developed hangar lots (City construct hangars)

·      Option 3 -  enter into a partnership with developer/investor to build and lease hangar lots 

2021 (Q2)

EOI – Completed August 2021

RFQ to Construct 2x GA Hangars – Nov 2021

Lease execution  ~ May 2022

General Aviation

1 x Code C lot

·      Fully serviced

·      Size: 3840m2 each

·      Suit aircraft maintenance / servicing / freight / smaller RPT operations

·      Advertise commercial lease opportunity, including domestic freight, private charter operations or RPT operations (GA aircraft < 30,000kgs)

2021 (Q2)

2022 (Q2)

Commercial & Industrial precinct

4 land lots

 

·      Fully serviced land lots for lease

·      Size: 4864m2 each

·      Direct runway access

·      Dedicated airfreight focus for lease by commercial aviation and support businesses

·      Option 1 -  City advertise and market commercial lease opportunities intrastate and nationally

·      Option 2 – City enter into commercial arrangement on long term lease basis with private developer/investor

·      Option 3 -  Approach Airport North Developer and negotiate commercial arrangement for external management of precinct

·      Option 4 -  Offer land lots for sale, either individually or as a precinct

2021 (Q1 – Q2)

 

Advertise/market RFP: Phase 1 & 2a, November 2021 – January 2022

Commercial & Industrial precinct

 

·      Remaining 15ha undeveloped land – RFP Commercial & Industrial Opportunities

 

 

Advertising

·      Electronic screens in the terminal / arrivals hall

·      Static posters located in the terminal

·      Fences and benches within carparks

·      Billboard (Neville Hyder Drive)

 

·      Electronic screen is available  - advertising to be completed

·      Static poster boards to be installed early 2021 – advertising to be completed

·      Following commencement RPT services, landside advertising opportunities (car parks, benches etc.) to be completed

2020/21 (Q1)

Ongoing

Landside commercial opportunities

·      Airport Café/kiosk

·      Retail / tourism products

·      Car valeting and storage

·      Fuel station

·      Hotel / short stay accommodation 

·      BMRA café /kiosk license in negotiations now

·      Retail  / tourism product once RPT operations commence (small scale), dependent on new terminal

·      Car valeting and storage once RPT operations have commenced

·      Long term opportunities - Fuel stations and hotel sites

 

2021

 

2022

 

+ 2025

Licence in place

2022 (Q1)

 

2022 (Q2-Q3)

 

+ 2025

 

As detailed in this report, the aviation industry has been significantly affected by the COVID-19 pandemic, making the above activities difficult to achieve in the originally specified timeframe.  As such, timeframes have been revised as outlined in the above table.

This report outlines the progress on the above activities and proposed next steps.

 

OFFICER COMMENT

Officers have been working with airlines and mining companies over the past twelve months to facilitate the changes in operations due to COVID-19 requirements and to increase fly in fly closed charter services. As a result there are 40 closed charter aircraft movements (20 flights) per week operating from the BMRA, made up of 28 operated by Virgin Australia for Rio Tinto, four by Qantas Group for FMG, four by Alliance Airlines for BHP and four by Maroomba Airlines for Northern Star Resources.

Direct Jetstar RPT services between Melbourne and Busselton have been further delayed to mid-February 2022 due to the continued COVID-19 imposed border restrictions. Despite the delay, the BMRA had a total of 3,267 aircraft landings in 2020/21, an increase of 690 landings for the same period in 2019/20 and record number of passengers with 40,469 passengers in 2020/21 compared to 26,496 passengers for 2019/2020.

 


 

BMRA Interstate Domestic Route Development

In early 2021 the City engaged an aviation consultant to complete airline route analysis and prepare business cases for Sydney and Brisbane services to present to airlines. The analysis showed that both Sydney and Brisbane routes were commercially sustainable with Sydney services indicating positive yields from 2021. Officers in conjunction with Tourism WA approached airlines and discussed informally a new Sydney – Busselton route. Given the impacts on the aviation industry resulting from the COVID-19 pandemic, it was agreed by all parties to delay negotiations until domestic travel has been restored and the Busselton-Melbourne services have commenced. Officers will continue to liaise with airlines and stakeholders on potential new domestic routes over the next twelve months.

 

Alternate Landing Site (ALS)

On 1 March 2019, the City received confirmation that BMRA was designated as an alternate international airport by the Department of Infrastructure, Regional Development and Cities. Prior to COVID-19 and restrictions to international travel, the City had received enquiries from numerous international airlines interested in nominating BMRA as an international alternate airport. In discussions with international airlines, officers identified a potential commercial opportunity to share in the financial savings made by international airlines if they were to nominate BMRA as an alternate to Perth Airport. In the event of Perth Airport being unavailable to airlines, aircraft could divert, park and refuel at BMRA and continue onto their destination once available.

 

Aviation Projects has been engaged to further assess the opportunity of BMRA being designated an alternate international airport with selected international airlines.  While feedback from airlines to date has been positive, the current environment as a result of the COVID-19 pandemic is proving difficult to proceed with detailed discussions on the opportunity. Staffing numbers across all airlines have reduced and personnel are often changing roles meaning previous dialogue undertaken is continuously being undertaken with newly appointed personnel.  In addition to this, it is uncertain when international borders will reopen.  Based on this it is recommended that discussions are placed on hold for 6-12 months until the industry has more certainty on its future and more meaningful discussions can be held.

Industrial and Commercial Precinct       

In the past two years, the City has been approached by a number of private investment / fund managers in regards to joint venture (JV) or partnership opportunities for the BMRA. To date, discussions have been high level and relate to the type of investment partnerships that the City can legally enter into. However, this has highlighted potential opportunities to progress the development of the industrial and commercial precinct with a key goal to create investment and economic activity for the BMRA, and more broadly the region. 

 

The BMRA Master Plan (2016-2036) identifies approximately 20 hectares of available land for aviation related industrial and commercial development. However, industrial/commercial land development is a specialised area that the City does not have deep knowledge or experience in. To ensure the City is able to maximise the commercial opportunities for the BMRA, Officers engaged a consultant experienced in urban planning, design, property and retail economics to prepare a Request for Proposal (RFP) document to market and advertise BMRA industrial and commercial opportunities. The RFP document has now been completed and officers have prepared a communications plan to detail the marketing and advertising activities to market the commercial opportunities.


 

The table below provides a summary of the activities proposed:

 

 

Action

Medium

Timeline

Costs

Phase 1

City to use existing contacts to advertise/market the RFP 

SWDC; RDA;

Industry & Aviation stakeholders;

VendorPanel; Print media

4 weeks

Minimum $ for print media advertising; Staff time

Phase 2a

City to advertise through industry specific media  – no agents

e.g. Urban Developer

The Industrialist

4 weeks

Website from $2000/month -  $4000/month

EDM from $3000/month - $4500/month

Editorial from $1500 - $4000

 

Phase 2b

Advertise through agents

Commercial, Property, real estate websites 

4 weeks

TBC – dependent on membership / agent costs

Phase3

COB engage an agent to complete, either:

-      Market sourcing exercise

-      Market advertising

Colliers; CBRE; Savills; KnightFrank

Based on scope

$20-$30k market sourcing exercise

$50k+ Public Advertising campaign

Phase 4

Conduct market demand analysis report with recommendations

Consultant

Based on scope

$50k+

 

In the absence of completing a market demand analysis to determine the current market supply and demand for aviation related commercial land, officers propose that phase 1 and 2a be undertaken to gage the level of market interest. The costs associated with phases 1 and 2a are not expected to exceed $12,000. This approach minimises the costs while exploring any potential development and lease opportunities. Depending on the level of interest received from the RFP, further phases could be considered.   

 

General Aviation (GA) Precinct – Code B

On 12 May 2021 Council endorsed (C2105/092), subject to an expression of interest (EoI), the construction of up to three general aviation hangars at the BMRA and the allocation of $210,000 for the construction of the hangars, to be funded from the Airport Infrastructure Renewal Reserve.

 

Officers advertised the EoI for constructed hangar leases in the new GA precinct in August 2021 for three weeks. Only one submission was received and Officers have met with the proponent to confirm their level of interest in entering into a lease. Officers have since liaised with a local shed builder and been advised that the costs of the hangars are likely to have increased by approximately 30% since seeking quotes in April this year, and that also delivery times for materials can be up to six months. As a result, Officers will issue a Request for Quotation (RFQ) for the supply and construction of two general aviation hangars this calendar year. Officers are proposing the construction of two hangars, with one to be leased following a submission from the EOI and the second available as a short term hire arrangement or for any new lease enquiries.

 

The EoI advertising has however generated a number of enquiries for the leasing of larger hangars and/ or ground leases which Officers are progressing. One concern that has been raised with potential lessees building their own hangars is the lease term of up to 20 years, with lessees requesting terms of up to 30 and 40 years. Despite the City owning the airport land in freehold, the City is not able to enter into leases for longer than 20 years without approval from the WA Planning Commission. As such, Officers have met with the Department of Planning to investigate the processes and approvals to achieve this. 

 

The City has also been liaising with a helicopter operator wanting to establish a helicopter maintenance and servicing business and once established, helicopter tourism flights. The operator, who would like to proceed this financial year, would consider building their own hangar however requires the lease term to be a minimum of 30 years to ensure a return on investment. Securing such an operator would be considered a great opportunity for the BMRA as this would attract aviation activity, provide job opportunities and economic benefits for the City of Busselton. To facilitate this, Officers are proposing that the City submit an application to Regional Economic Development (REDs) Grants scheme round four for up to $135,000 with the City of Busselton contributing a matching contribution of $135,000 to build a hangar of approximately 500sqm. Once built the hangar would be leased out at a commercial rate. If the City was to be successful with a REDs grant application to build the hangar, Officers propose the remaining unspent budgeted funds for the construction GA hangars, estimated to be approximately $50,000, be allocated towards the City’s matching contribution of $135,000 with the remaining $85,000 being funded from the Airport Infrastructure Reserve.  This however will be subject to a separate Council report should the City be successful in obtaining REDs funding and if the City is not successful then the Council will need to consider, along with the benefits and cost implications, if the City should fund the total cost of constructing a hangar.

 

General Aviation Precinct – Code C

As part of the Airport Development Project, two 50mx50m serviced hangar lease areas with Code 4C apron access were developed. Since this time, the City has utilised one of the hangar lots for the construction of the new Arrivals Hall. The remaining lease area has potential to host commercial operators for RPT aircraft freight operations, private charter or smaller RPT operations (aircraft less than 30,000kgs MTOW), and aircraft servicing or maintenance services. However in the current environment it is difficult to secure investment, especially with no RPT services operating. Officers therefore propose to hold off on formally advertising this commercial opportunity nationally until RPT services are operating, in the meantime will undertake more passive, low cost marketing activities.

 

Landside Commercial Opportunities

Terminal Advertising

The terminal expansion works completed in March 2020 in preparation for the Jetstar Melbourne -Busselton flights included the installation of an electronic advertising screen and static light boxes in the new Arrivals Hall. Currently the Arrivals Hall is utilised for arriving FIFO passengers.  An EoI was advertised for advertising opportunities with five businesses taking up advertising space on the electronic screen and one business operator advertising on each of the static light boxes. Advertising is booked on a three monthly basis with bookings secured for the next quarter.  Interest and take up is expected to increase once RPT services have commenced.

 

Terminal Concessions and Retail

A licence was issued for the BMRA café/kiosk located in the Terminal building in late 2020 and has been operating for the FIFO closed charter flights on Tuesday, Wednesday and Thursday mornings. Once RPT services commence, the operator will increase their opening hours to cater for the Jetstar flights as well as FIFO.

 


 

Transport Providers

Officers have been liaising with transport providers such as car hire companies, coach, shuttle and mini-bus operators and private chauffeur and limousine operators since March 2020 and will re-engage in early 2022 for the commencement of RPT services.  

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139

·        Council’s Transport Security Plan

·        City policies and procedures

 

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

 

Financial Implications

The adopted 2021/22 Airport Operations Budget has an allocation of $50,000 for consultancy based activities. To date, there has been no consultancy expenditure. While there are activities that will draw on the consultancy budget throughout the year, there will be sufficient funds to cover the costs associated with phases 1 and 2a to market and advertise the commercial and industrial RFP opportunities to a maximum value of $12,000.

 

The adopted 2021/22 budget has an allocation of $210,000 towards the construction of GA hangars.  The proposal to construct two hangars as a result of a successful EoI process will be funded from this budget allocation. 

 

The proposal to build a hangar for an aviation maintenance and servicing operator is dependent on the City applying and being successful in a REDs grant. If successful the City would be required to match the grant funding contribution of $135,000 which could be part funded from unspent funds allocated towards the construction of GA hangars and funding from the Airport Infrastructure Reserve. If the City is successful in a REDs grant this would require Council consideration through a budget amendment report.

There are no other direct financial implications associated with the officer recommendations in this report.   

 

Stakeholder Consultation

Officers have consulted with the relevant stakeholders in regards to this report, including Airlines, Tourism WA, Margaret River Busselton Tourism Association, Australia South West, aircraft operators and owners and commercial / investment developers.

 

Risk Assessment

An assessment of the potential implications of implementing the Officer Recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 


 

Options

As an alternative to the proposed recommendation, the Council could:

1.         Not support business development activities for the BMRA and choose to do nothing.

2.         Propose alternative priorities for BMRA Business Development activities for any or all recommendations.

 

CONCLUSION

Significant commercial opportunities now exist at the BMRA as a result of the completion of the airside and landside developments. Unfortunately, due to the COVID-19 pandemic, commercial investment opportunities have slowed and have been difficult for Officers to progress and secure. As the COVID-19 restrictions begin to lift within Australia and the aviation industry begins its recovery as airlines recommence operations, there will be potential for Officers to market and attract various commercial and investment opportunities at the BMRA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If supported, officers will commence marketing and advertising of the commercial and industrial RFP immediately to maximise the commercial opportunities as the aviation industry begins to reopen and both domestic and international operations commence. The request for quotations for the general aviation hangars will be issued before the end of October and if supported, a REDs application will be submitted by 21 October 2021.


Airport Advisory Committee                                            91                                                               20 October 2021

8.               General Discussion Items

8.2             BUSSELTON MARGARET RIVER AIRPORT TERMINAL UPDATE

Ms May provided an update on the proposed expansion of the Busselton Margaret River Airport Terminal.            

            

9.               Next Meeting Date

The next meeting will be held on 1 December 2021.

 

10.             Closure

The meeting closed at 11.29am.

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 92 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON:

 

DATE:_________________              PRESIDING MEMBER:_________________________