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This article was published on Tuesday, 21 November, 2017. The information contained within may be out of date or inaccurate. News articles and media releases older than 60 days are archived for future reference.

New aerodrome fees offset financial loss of running airport

The Council manages and operates the Shepparton Aerodrome which currently runs at a loss. Greater Shepparton City Council Manager Works and Waste Heinz Kausche says the introduction of the fee for users will assist Council in recovering part of the costs involved in operating the aerodrome for which it has maintenance and compliance responsibilities.

“Council currently operate the aerodrome at a loss each financial year due to ongoing maintenance and capital project costs,” said Mr Kausche. “The introduction of the landing fee will ensure the longevity of an airport facility for those wanting to fly to or from Shepparton.”

“The fees are in line with other airports and allow council to recoup some of the costs for both routine and periodic maintenance and to ensure ongoing legislative compliance as per Civil Aviation Safety Authority (CASA). It will ensure the aerodrome operates safely and is maintained and managed to the level required,” he said.

“Locally based hanger owners including the two local businesses based at the airport are exempt from the landing fees.”

Currently Council as the facility manager has no process in place to seek full reimbursement of costs from facility users. “Facility users could be any registered aviation organisation or private operator in Australia. We plan to address this through the introduction of landing fees which are estimated to bring in an additional $60,000 per annum to offset aerodrome maintenance costs. The budget for the 2016/17 financial year is $139,800 for operational and capital expenditure,” said Mr Kausche.

“Via aerodrome fees, hanger rentals, infrastructure maintenance fees, landing fees, Council will recuperate user charges and rental fees of $72.9k for the financial year. Council are operating the aerodrome at a loss by subsidising aerodrome users by contributing a further $66.9k in 16/17, over and above any income generated. Council currently recuperate landings fees from two aircraft operators only.”

Council will engage Avdata Australia, the preferred service provider to the national aviation industry for monitoring aerodromes to monitor, invoice and manage accounts for all aircraft traffic landing at the aerodrome regardless of the origin of any flight.

Mr Kausche said the introduction of landing fees would establish Shepparton aerodrome as a near full cost recovery operation and user pay facility.