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

Kangaroo Island Airport Upgrade Business Case
10.2 Risks to be dealt with if the project does not proceed
There is a risk to the Kangaroo Island community if the project does not proceed.
Without access to an appropriate airport facility, RPT air access may eventually be
withdrawn, further isolating the community from the rest of the state.
The existing facilities may deteriorate and negatively impact on services for the Island.
In the event of the upgrade not taking place, it is possible that the aircraft that would
replace the SAAB 340 would be smaller (in the 20 seat range). Whilst this would likely
result in a more frequent service the aircraft service will suffer due to its inability to link
to international flights and marketing and support the luggage requirements of such
travellers. The shift to a smaller aircraft could also see a shift from Adelaide airport,
where interstate and international flights depart and land, to a smaller airport such as
Parafield airport reducing the convenience and increasing cost in Adelaide for
Community and visitors alike.
The impact on the social and economic outcomes of the Island will be significantly
negative if the airport upgrade does not proceed. Whilst difficult to quantify exactly the
level of social disadvantage if an upgrade was not to go ahead it would be significant
due to the community being an Island. Economic activity foregone could include:
• GRP in the order of $1.4 million and 17 FTE from the construction phase of the
airport upgrade;
• GRP in the order of $631,000 annually and 9 FTE from the operational impacts of
the airport; and
• Unrealised GRP and FTE due to constrained tourism growth. GRP of between
$12M–$49M and FTE numbers of between 107-382 may be foregone if the
undeveloped airport impacts on the tourism growth scenarios modelled by
EconSearch.
If there is an interruption to air services in the future, the Council has communication
channels through to state Government to assist in the development of alternative air
services providers, and through assistance from KIFA and the SAEDB, has access to a
range of government connections which will assist in whatever is possible to reestablish
the services to some form, but this is unlikely to achieve the volumes that
would deliver on the broader economic developments in the region and the state.
May 2013
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