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Newcastle Herald
Newcastle Herald
Business
Jamieson Murphy

It should be clear skies for runway riches but we may hit turbulence

The business community wants funding for Newcastle Airport in the upcoming state government budget. Picture by Elesa Kurtz

It's that time of the year when everyone comes to the state government, cap in hand, asking for money.

And it's also the time of year when we hear the state government tell us how poor it is and how it's the former government's fault (seriously, has there ever been a government that won power and said there wasn't a surprise budget black hole?).

The NSW budget will be handed down in June. Communities and interest groups from the state are jockeying for dollars, but surely the four Hunter MPs who hold portfolios and sit in the cabinet could successfully argue to invest in the Newcastle Airport?

The airport, Business Hunter and Committee for the Hunter have all called for the same thing; $15 million over three years to secure domestic routes to places like Perth and Hobart and international routes to New Zealand and southeast Asia.

In the grand scheme of things, $5 million a year is a round error in the government's budget.

I hear you ask 'why should the government hand out any money for airline routes, shouldn't they be able to stand on their own two feet?'

It's an astute and fair question dear reader.

The long and short of it is securing new routes is a competitive and at times risky business. Airlines have a finite number of planes, so establishing a new route often means ditching another route, or swapping a known commodity for an unknown one.

With every airport in the country competing for routes, airlines are going to send their planes to whoever gives them the softest landing.

The $15 million could be used to advertise the new routes, help airlines relocate their planes and staff, or establish office space at the airport.

The funding would likely come out of an "aviation attraction fund". Although the NSW government has such a fund, it expired in June 2023 and is yet to be renewed.

At the same time NSW has let its fund lapse, other state's have recognised the importance of such a fund - the Northern Territory recently committed $20 million to attracting more routes, while the Queensland government's attraction aviation fund is secure until 2025.

Other states are doubling down on the economic multiplier effect airports have on their local and state economies. Newcastle Airport already contributes more than $1 billion annually to our economy, and that's without full domestic connectivity or international flights.

There are also calls for the state government to provide $6 million - which would be matched by the airport - to allow airlines to "home base" in Newcastle.

Planes would start and finish their day at Williamtown, which would increase the early morning and late evening flight slots, and dramatically improve the reliability of flights.

At the moment, if there's a problem with a plane on its way to Newcastle, it's often forced to turn around to its home base where its team of mechanics is located.

If a flight is running late or a pilot calls in sick, home basing airports have more capacity to cover the issue and keep the day running smoothly.

They might sound like little things, but when it comes to a 150-ton flying machine soaring through the air at 800km an hour, it's the little things that keep them on the ground.

Home basing aircraft also provides a local economic stimulus. Each plane brings with it an ecosystem of about 40 people, from pilots, flight attendants, baggage handlers, cleaners and so on.

A slightly more ambitious ask is $27 million for an international freight terminal. Hunter Valley wine and New England beef could be sent around the world on the belly of passenger planes out of Newcastle Airport.

Once again, the economic argument stacks up and once again, it's a question of how much the NSW government prioritises the Hunter.

New director at The Mutual Bank 

Andre Pinkowski

Andre Pinkowski has joined the board of The Mutual Bank, replacing long-standing director Melinda Smith, who has retired from the role after 10 years.

Mr Pinkowski's career has spanned enterprise software-as-a-service, IT consultancy, web, mobile, and digital entertainment.

The Mutual Bank board chair Steve Meyn thanked Ms Smith for her decade of service and "passion for the community".

"Andre brings a dynamic new energy to the Board as an inspiring entrepreneurial leader and strategist, having founded, scaled, and sold several high growth companies," Mr Meyn said.

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