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Townsville airline new “canary in the coal mine” for Queensland government

Townsville Travel - Airport

Townsville airline market

Townsville’s airline market increased recently thanks to international visitor numbers and Tiger Airlines Melbourne service. The domestic and international markets over the medium term however, have been steadily declining. This is especially so in the aftermath of Tiger Airlines flights being cancelled from Melbourne, Jetstar flights from Bali and now the PNG Airlines service from Port Moresby pulling out.

Global connections

Enough canaries have been sacrified by the Queensland government in a relatively short time, enabling experts to make reasonable observations about the source of the economic and industry symptoms.

Well, we have a new canary in the State’s progressive’s globalist coal mine located in Townsville.

The policies and attitudes are not just impacting Townsville’s economy though. The impacts are real for all economies of regional Australia are under serious threat by man-made Climate Change dystopia.

Im not going to go into the detail of the science here. But growing evidence and progressive scientists are changing their synopsis that man’s impact is less than stated by Al Gore and Tim Flannery predicted from their discredited “peer review, pay per report” science cohort.

Passenger inflows welcome

Nonetheless, this week the Queensland Government, with the airports and carrier partners Queensland Airports and Airnorth Airlines respectively, announced new seasonal services between Darwin, Townsville and the Gold Coast.

Of course, additional inflows of tourism, population and employment is welcome news for the Townsville economy.

But while the Queensland Government partnership offers a small boost to the northern Australia city, the public announcement event is more representative of the “canary in the coal mine” with respect to the airline and Townsville as far the property sector and broader economy is concerned.

The analysis of macro economic factors involving airlines for the property industry is important as tourism inflows impact demand for our property services.

Airline and airport announcement

The announcement by Air North that they will offer two new services per week from Townsville to the Gold Coast return is welcome for the local economy and the property sector.

The service, departing Darwin via Townsville and onto the Gold Coast will operate twice weekly on Wednesday and Sunday from 3 April through to 20 October 2019.

Townsville Airports Limited said; “This new service marks Airnorth as the only carrier in Australia to provide nonstop flights between Queensland’s Townsville and the Gold Coast. Additionally, this new route will be Airnorth’s fourth destination in Queensland.”

“The service will cater to the region’s rapidly evolving business and leisure market, and has been conveniently scheduled to commence ahead of the Easter school holiday period for the long-held tourism hotspots.

Airnorth Chief Executive Officer Daniel Bowden said the addition of the Gold Coast destination is incredibly exciting not only to Airnorth, but for all business and leisure travellers in Australia.

“The announcement of this additional service means Airnorth is supporting Queensland by providing up to 25 flights weekly in, and around the state.

This provides an abundance of opportunity not only for tourism on an international and national level, but also a fantastic opportunity for intrastate travel for all Queenslanders.”

Townsville residential property market 2018 review

Tourism Industry Development Minster Kate Jones welcomed the new route.

“Making it as easy as possible for visitors to travel to key destinations throughout the state is vital to growing our tourism industry,” she said.

“These flights will help to lure visitors, ensure tourists stay longer and experience more of what we have to offer in Queensland.”

Queensland Airports Ltd, the owner of Townsville and the Gold Coast airports welcomed the news of the service.

QAL Executive General Manager Business Development and Marketing Adam Rowe said, “Townsville and the Gold Coast are both health, education and business hubs – this air link will benefit both cities and allow business to grow between the regions.

“We look forward to supporting this service and hope it grows in future.”

The carrier is offering airfares from Townsville to Gold Coast starting at $209 which includes 20 kg checked luggage and refreshments.

Policy and economic factors flying against Air North

Since 2012, the domestic passenger inflows have been steadily declining from approximately 803,000 to 709,000 visitors per annum in 2017. Approximately, 23,000 international visitors arrived in the city last year, 20,000 the year before and 4,000 the year before that.

In the absence of another international carrier at this stage, the departure of PNG Airlines and Jetstar before that, it is conclusive that the trial of international air services into Townsville over the past 3 years was unsustainable.

Despite the fact the Townsville region Gross Domestic Product (GDP) has steadily increased since 2012 from $11 billion to $13.5 billion in 2016, population, jobs, property values and affordability and livability have all declined.

Government investment in public infrastructure has also declined by 23 per cent in 2018 based on the average government spend over the past 5 years. Government estimated public infrastructure spend for 2019 is expected to decline by a further $40 million, or 32 percent of the 5 year average.

Like the airline industry, most key economic matrix under which governments – particularly the State that has principal jurisdiction, is in decline. This is in spite of the positive announcements on water security and the football stadium developments.

Broader economic factors

In this context, the Airnorth announcement is positive. However, the broader macro-economic factors under the current government makes any person question if the State government has the qualifications to employ the right policy mix that the largest regional Queensland economy outside Brisbane must demand.

A Brisbane-centric government administration, anti-industry regional infrastructure development agenda and the crippling costs of energy, insurance, housing development, petroleum and transportation, by and large are driven by post-modern global climate change policy and cultural alignment on sale to the tourism, education, defense and public service sectors.

Major capital cities might be able to capitalise on the services industries created around new technology industries, but the disputable progressive ideology position of the government presents an ongoing risk to opportunity and livability conditions in a regional economy such as Townsville.

The tragic irony of the Queensland government’s deal with Queensland Airports and Airnorth Airlines is that the “canary in the coalmine” illustrates more than the fate of the airlines that have come and gone.

The struggle also presents a clear parallel with the broader Townsville economy.

Political factors and green taxation

In the way in which a mining experiment is occurring with socialist globalisation and the distribution of Green capital. Its being promoted and protected by anti-industry policy makers, bureaucrats and lobbyists in the Labor government.

It’s about ideology, and the accompanying confected good will in cutting CO2 emissions from the raw earth of Townsville’s traditional economic catchment. A trace gas not dangerous to human and ecological existence. But the essential building blocks of all life on earth.

The overt hostility towards Adani and Queensland Nickel is a glaring testament to the leadership duplicity that has put the Townsville economy into a form of lasting industry paralysis, no less the covert impact of crippling energy, insurance and petroleum prices on the North Queensland citizen and business driven by the same duplicity.

The cost base to the economy has been pervasive.

The State government’s manipulation of its energy generators has reportedly added $600 per annum to the household electricity bill. In the Federal government’s promise to lower power prices, the Morrison administration may force the Queensland Government to sell their power stations from which the State has been profiteering.

Global free trade considerations

But in a globalist system, local businesses are expected to pick up capacity and deliver labor, material and products under multi-lateral trading schemes with China, Brazil, Indonesia, Japan and Pacific Island nations to name a few.

Most small to medium size businesses in Townsville, the majority of employers, havent the reach to capitalise on the schemes. Even with digital technologies. But we know absolutely that new Green funding for the solar project at Kelso for example, had cheap Philippines Labor working on site. The Indonesia free trade agreement will allow 8,000 Indonesian workers enter the Australian labour market.

Capital cities advantaged in services economy

While such schemes and globalists corporations and political operatives under a United Nations, World Bank and World Economic regime has driven populations and economic benefits for capital cities in Australia, regional economies like Townsville are being left out of the evolving super highway built on big digital social, cultural, political data infrastructure not conducive to the Townsville regions traditional core industries of mining, manufacturing and public administration.

Its only now that we see capital city property markets in Sydney and Melbourne experience an easing on valuations, that we here about fiscal policy ideas to address the impact on the market.

What makes Townsville property investors and investors any different from capital cities? The electoral supply chain and economic policy bias by governments, who are progressively becoming even more capital-city centric, are signicant factors.

Therefore, the latest Air North canary in the coal mine announcement is another mirage of positive sentiment unlikely to become more than a fax for winter season social, cultural and political committments.

How does travel inflows impact the property market?

Airport inflows have an immediate impact on short-term accommodation supply as passengers are visiting the city for business, leisure or both.

The inbound travel market creates jobs in the hospitality, venue and equipment hire, tourism attractions and accommodation markets, which supports population sustainability, one of the main drivers of economic performance.

Unless the key economic drivers with sustainable industries and smarter regional government policy is addressed urgently, the claim by the government of a “rapidly evolving business and leisure” market might just be another appeasement strategy to quell the public and business anxiety of further recessionary symptoms.

It will no doubt fiddle with the easily orchestrated business confidence surveys. But Airnorth, like the previous carriers in the coal mine as was Jetstar, Tiger, PNG Airlines and a reluctant Qantas, will drop off the perch too unless the right leadership; fiscal, energy, industry and infrastructure policy mix is injected in the Queensland and Northern Australia regional economy.

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Aaron M, Editior
Aaron is the founder and editor of TREN eMagazine with 15 years experience in the real estate industry investing and helping investors seek value, leverage value and capitalise on value, developing professional and technical skills and capabilities that have enabled his success in business from startups, adoption, asset growth, management and community leadership projects. Aaron also loves travelling, sports, his partner Jodie and helping people discover their "why" and find their few "what's" in life that realise the "wows. The " www" in is one of his why, what and wow's that strive to add valuable content and analysis for readers to participate and win.

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