Kingscote Airport Business Case - Kangaroo Island Council - SA ...

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Kangaroo Island Airport Upgrade Business Case Table 2: International visitor origin, 2000/01 - 2011/12 Source: Colmar Brunton, 2012 5.1.3 Modes of transport As previously stated, the water gap that separates Kangaroo Island from the mainland means that the two main ways to access the Island are by air or ferry. Air passenger movement trends Whilst Kangaroo Island has seen an increase in visitation over the last decade, the corresponding period has seen a decline in air passengers at Kangaroo Island airport and visitors are choosing to travel via the ferry. Passenger movements between Adelaide and Kangaroo Island airport peaked in 1999 where just over 90,000 passenger movements (or approximately 45,000 visitors by air) were recorded. Since this time air passenger numbers have trended downward. Passenger movements in 2012 were 39,511 which represented a passenger load factor (utilisation of total capacity) of 53.5%. 21 The following figures illustrate the contrasting trends of ferry (operated by SeaLink) and airline passengers, with the ferry capturing a larger proportion of total visitors. Figure 12: Airline and ferry passenger numbers, 1998-2010 Source: SeaLink, 2012, Customer service and pricing strategy 21 Passenger movement data provided by Department of Planning, Transport and Infrastructure, 2013. May 2013 30
Kangaroo Island Airport Upgrade Business Case Figure 13: Air passengers as a percentage share of total visitor movements, 1998 - 2011 75% 78% 80% 79% 79% 83% 83% 83% 85% 86% 88% Non- Air 25% 22% 20% 21% 21% 17% 17% 17% 15% 14% 12% Air 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Kangaroo Island Council; PAC There are likely to be various reasons for a decline in air passenger movements over the last decade, including the fact that the improved quality of Kangaroo Island ferry services has likely had a negative impact on demand for air services. The figure below illustrates other events that may have contributed to (or occurred as a result of) the decline in air passenger movements. The figure also shows that the existing air services operator now operates in a monopoly market. PAC suggest that without air competition, the current downward trend in air travel is likely to continue due to the incumbent’s higher cost base (resulting in higher fares 22 ), limited network connectivity to major source markets and monopoly position. PAC also suggests that if competition is to occur it will likely occur with aircraft too large and heavy for Kangaroo Island airport’s current infrastructure. Figure 14: Air passenger movements, 1985 - 2011 Emu airlines pull out Brief operations by QantasLink 100,000 90,000 80,000 70,000 Airlines of South Australia ends flights (4 th April 1986) Rex monopoly 60,000 50,000 Pilot Strike 40,000 Collapse of Ansett in September 2001 30,000 20,000 10,000 0 Kendell Airlines, Lloyd Aviation, Albatross Airlines (1980’s-early 90s), Commodore Air (1980s) Air Kangaroo Island (1990s) Source: BITRE data 22 The most cost effective method of transportation to Kangaroo Island (Kingscote) from Adelaide is a combined coach and ferry service, as provided by SeaLink, however like flying to the Island this option does not provide for transport once on the Island. May 2013 31
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Kingscote Airport Business Case - Kangaroo Island Council - SA ...

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