THE RAAA COMMENDS THE FEDERAL BUDGET BUT HIGHLIGHTS THE THREAT TO ESSENTIAL AVIATION SERVICESOctober 9th, 2020 Comments Off on THE RAAA COMMENDS THE FEDERAL BUDGET BUT HIGHLIGHTS THE THREAT TO ESSENTIAL AVIATION SERVICES
The Regional Aviation Association of Australia (RAAA) today congratulated the Federal Government on bringing down a budget that will stimulate a business led recovery from the economic ravages of the coronavirus.
Commenting on the budget RAAA Chairman, Jim Davis, said that “The RAAA applauds the Government’s budget which prioritises a private sector led recovery to the COVID-19 pandemic.
The instant asset write-off provision and the temporary ‘loss carry-back’ tax provision will encourage RAAA members to increase investment in what is a very capital intensive industry. Along with the Government’s extra funding for apprentices, this will help create jobs and improve aviation services throughout regional Australia.”
However Mr Davis went on to say that “While the budget will be very beneficial to those aviation businesses that are in the midst of recovering from the damage caused by the coronavirus it must not be forgotten that many companies are still struggling for survival, particularly in Victoria. The budget measures will not assist them and we call upon the Government to offer them a lifeline until such time as they can begin their own recovery in the same way that regional airlines have been offered a lifeline”.
Recent media articles have highlighted the plight of essential aviation services such as flying schools, simulator training centres and aircraft maintenance organisations many of which have lost most or all of their revenue and are close to collapse.
The RAAA represents aviation across Australia. It has around 100 members and its Air Operator Certificate (AOC) holding members directly employ over 2,500 Australians, many in regional areas. On an annual basis, the RAAA’s AOC members jointly turnover more than $1.5b, carry well in excess of 2 million passengers and move over 23 million kilograms of freight.