Phillip Island Airport Strategic Review

Transcription

1 Prepared for: Bass Coast Shire Council Prepared by: Kneebush Planning Pty Ltd PO Box 2326, Moorabbin VIC 3189 ABN and AECOM Australia Pty Ltd Level 9, 8 Exhibition Street, Melbourne VIC 3000 ABN May 2015

2 Table of Contents 1 Introduction Background Scope of Review Methodology Assumptions, Limitations and Exclusions Structure of this Report Current Situation Airport Location Airport Site and Surrounds Planning Controls Ownership Existing Facilities Current Use Other Aerodromes Policy Context and Previous Studies State Planning Policy Framework Gippsland Regional Growth Plan Municipal Strategic Statement San Remo, Newhaven and Cape Woolamai Structure Plan (2010) Rural Tourism Development Study (2009) Phillip Island Integrated Transport Study (2014) Rural Land Use Strategy (2014) Residential Land Supply and Demand Assessment (2014) Economic Development Strategy (1998) Phillip Island Airport Pre-Feasibility Study (2003) Phillip Island Airport Land Future Uses Discussion Paper (2008) Stakeholder Consultation Stakeholders Consulted Views of Stakeholders Summary of Outcomes Strategic Assessment General Aviation Activity in Australia The Economics of Airports Airport Safeguarding Role of Satellite Airports Phillip Island Population Forecast Airport SWOT Analysis Summary... 30

3 6 Development Options Analysis Option 1 - Do Nothing Option Option 2 - Airport Upgrading Option 3 - Non-Aviation Development Option 4 - Full Closure of the Airport Option 5 Partial Closure of the Airport Option 6 Relocation of the Airport Conclusion and Recommendations Appendices Appendix 1 Appendix 2 Property Report ERSA Extract

4 1 Introduction 1.1 Background Phillip Island Airport is a small scale, privately owned and operated aerodrome located at Cape Woolamai on Phillip Island (Coordinates S E). The airport adjoins the Cape Woolamai residential area which is located immediately to the east of the airport site. Phillip Island Airport is classified as an Aircraft Landing Area (ALA) under Civil Aviation Safety Authority regulations meaning it is not a certified or registered aerodrome and is therefore exempt from most of the standards that apply to those larger aerodromes. The airport has only one runway (Runway 04/22) which has a gravel surface. There is no runway lighting. Phillip Island Airport is a General Aviation (GA) airport meaning it is used for a range of civil aviation operations but not for Regular Public Transport (i.e. scheduled passenger services). The primary use of the airport at present is as a base for Phillip Island Helicopters, which provides helicopter sightseeing flights around the island, charters and other helicopter services. In 2009 the future of the airport was considered at the Panel Hearing for Amendment C90, which sought to implement the San Remo, Newhaven and Cape Woolamai Structure Plan (2010). At that Panel Hearing the land owners of the airport made a submission requesting that the Structure Plan reflect the site s redevelopment potential for urban purposes. The Panel did not support the land owner s submissions but recommended that the site be identified in the Structure Plan as an investigation area once the airport s future has been determined. This is now reflected in Clause of the Bass Coast Planning Scheme. The San Remo, Newhaven and Cape Woolamai Structure Plan is scheduled to be reviewed this year and as part of the Structure Plan review Bass Coast Shire Council require an independent strategic review of the airport s role, benefits and viability to help inform any future changes to the Structure Plan. Kneebush Planning, in association with AECOM, were engaged by Council to undertake this review. Phillip Island Airport has been the subject of two previous studies which have helped inform this current study. The first was the Phillip Island Airport Pre-Feasibility Study (March 2003) undertaken by Airbiz for the owners of the airport site. The second was the Phillip Island Airport Land Future Uses Discussion Paper (February 2008) undertaken by Hansen for Bass Coast Shire Council. The outcomes of these studies will be discussed later in this report. 1.2 Scope of Review Kneebush Planning and AECOM were engaged by Bass Coast Shire Council to undertake a strategic review of the role, benefits and viability of Phillip Island Airport with specific regard to the following matters: 1. Identify the aviation requirements of Phillip Island, including the recreational, private, business/corporate, charter and aerial work (including emergency services) sectors, of communities on Phillip Island and within the Bass Coast Shire Council. 2. Answer the following questions: Is there a requirement for the Phillip Island Airport? What benefit does the airport provide to the economic and tourism sector? What community benefit does the Phillip Island Airport serve? 1

5 o o Does the airport have an economically viable future? If the answer is no, what development options would be required to make it feasible? Is the existing siting of the Phillip Island Airport the most appropriate location to service the ongoing aviation requirements of Phillip Island? If no, is it economically feasible to relocate the Phillip Island Airport to an alternative location? 1.3 Methodology The methodology for this review comprised five stages: Stage 1 Project Inception This stage was primarily about confirming the scope of work and getting a thorough understanding of the issues/requirements that needed to be addressed. An inception meeting with Council officers was held on 13 March Stage 2 Information Gathering This stage involved gathering relevant background information including studies, policies and previous reports relevant to the airport. In this stage an inspection of the airport was undertaken and approximately 20 interviews were held with key stakeholders. Targeted consultation was undertaken with stakeholders (identified with the assistance of Council officers) involved with the airport as well as others associated with tourism and economic development on Phillip Island. Stage 3 Strategic Assessment Stage 3 of the review involved undertaking a strategic assessment of the information obtained in stage 2, focusing on the role, benefits and viability of the airport. Stage 4 Development Options Analysis In stage 4 a number of development options were investigated aimed at supporting the future viability of the airport. The option of relocating the airport was also considered. Stage 5 Report Preparation Stage 5 comprised preparation of this report setting out the study findings and results. 1.4 Assumptions, Limitations and Exclusions The following assumptions, limitations and exclusions applied to this review as agreed with Council: The review relied significantly on information and data which was supplied or obtained from Bass Coast Shire Council or third parties (e.g. stakeholder interviews). Any information and data supplied by Council or any third parties is assumed to be correct and suitable for the project. No community consultation was required for this project other than the key stakeholder interviews. Economic analysis was based on information provided to us through the interviews in stage 2 and from other third party sources such as the Australian Airports Association and Bureau of Infrastructure, Transport and Regional Economics. Detailed quantitative economic modelling or analysis was not required. 2

6 The scope or work excluded a detailed review of the flora and fauna species contained on the airport site. Infrastructure assessments were undertaken at a high level and were based on the site inspection and interviews undertaken in stage 2. Site specific alternative locations for a relocated airport did not need to be identified. Any cost estimates for infrastructure upgrades and for possible relocation of the airport were only required at a high level and for indicative purposes only. They are not based on any detailed surveys or engineering design and should therefore be considered rough order of magnitude estimates. 1.5 Structure of this Report This report sets out the findings of the strategic review of Phillip Island Airport. Section 2 of this report provides a description of the existing conditions at Phillip Island Airport including details of the site, surrounding land use, existing airport facilities and current aviation activities. In Section 3 an analysis of the current policy context is provided as well as details of the previous studies referred to earlier. Section 4 sets out details of the key stakeholders consulted for this review and the outcomes of that consultation. It is noted that the stakeholder consultation was the primary source of current information and data for this review. Section 5 of this report discusses the strategic assessment of the airport starting with the broad social and macroeconomic environment relevant to the airport and then in Section 5.5 a SWOT analysis of the airport s current position is presented. In Section 6 the outcomes of stage 4 of the review are presented, being a number of development options aimed at supporting and maintaining an aviation facility on Phillip Island. Finally, Section 7 sets out the overall conclusions of the report. 3

7 2 Current Situation 2.1 Airport Location Phillip Island Airport (PIA) is located on Phillip Island at Cape Woolamai (see Figure 1 Phillip Island Airport Location Plan). The airport is approximately three kilometres west of San Remo and 10 kilometres south-east of Cowes. The airport is about 84km from the Melbourne CBD as the crow flies, or about 126km by road (about 90 minutes by road without traffic). 2.2 Airport Site and Surrounds A property report for the airport site from is attached at Appendix 1. The physical area of the airport site is approximately 47 hectares. The northern boundary of the airport site fronts onto Phillip Island Road (B420), which is the main road providing access onto the island and to Cowes (see Figure 2 Phillip Island Airport Site and Surrounds). The land on the northern side of Phillip Island Road is open rural / farming land with a number of rural lifestyle allotments. The eastern boundary of the airport site abuts the Cape Woolamai township with approximately 60 residential properties backing onto the airport very close to the runway. The houses are located approximately 55 metres from the runway. Existing houses on eastern boundary The southern boundary of the airport site abuts a short section of the Bass Strait coastline. The western boundary of the site abuts a short section of Veterans Drive and three separate properties not forming part of the main airport site, as shown in Figure 3. The land on the west side of Veterans Drive is open rural / farming land zoned Farming Zone. 4

8

9

10 2.3 Ownership The airport site is privately owned by Glen Waverley Real Estate Pty Ltd. The site is leased to Gary Morrison (or a related entity) who is the owner of PIH and the owner of Lot 6 located on the corner of Phillip Island Road and Veterans Drive. Of relevance to this review, Gary also owns and operates Tooradin Airport. Figure 3 Property Ownership 2.4 Planning Controls The airport site is zoned Farming Zone (FZ) under the Bass Coast Planning Scheme. The following overlays apply to portions of the airport site adjacent to the Bass Strait coastline: Environmental Significance Overlay (ESO1) Coastal Wetland Areas Significant Landscape Overlay (SLO2) Phillip Island Western and Southern Coast 2.5 Existing Facilities PIA comprises one gravel runway, Runway 04/22 (see Appendix 2 extract from the Airservices Aeronautical Information Package En Route Supplement Australia (ERSA)). The runway is 1150m long but with a 200m displaced threshold at the north end, meaning 1150m is available for take-off in the Runway 22 direction only, and all other operations are restricted to a runway length of 950m. The runway is 15m wide. There is no runway lighting. 7

11 It is noted that the airport originally comprised three runways; the current runway and two shorter cross runways. It is understood that the two shorter runways were closed several years ago due to ongoing maintenance costs. There is a single taxiway (formerly Runway 11/29) which provides access between the runway and three airport buildings and an apron area which are located in the north west corner of the site, adjacent to Lot 6. The buildings are used for aircraft and equipment storage and an office for PIH. 2.6 Current Use The primary use of PIA is as a base for the operations of PIH. PIH primarily provides scenic joy flights around Phillip Island for tourists and visitors to the Island, although they also provide charters and other aerial work helicopter services as and when required. In 2014 PIH had 2,502 flights (5,004 movements). The heliport component of the airport is also used by other helicopters, notably emergency services helicopters operated by Air Ambulance Victoria (AAV) and the Police Air Wing (PAW). AAV and PAW both use the Phillip Island Helicopters heliport for refueling from time to time as the airport has a supply of Jet A1 fuel used by their helicopters. AAV also use the heliport for patient pick-ups. According to the airport operator there are approximately 300 other helicopter flights per year at the airport (600 movements) in addition to PIH s flights. In 2014 there were 172 fixed wing aircraft flights to the airport (344 movements). Many of these were for the skydiving business operated by PIH / Gary Morrison. A GippsAero Airvan based at Tooradin Airport regularly flies to PIA to pick up skydivers. Other fixed wing use of the airport is largely by private aircraft. It is understood that there are no other commercial operators of fixed wing aircraft that use PIA on a regular basis. In 2014 there were approximately 6,000 total aircraft movements at PIA, the vast majority being helicopters. 2.7 Other Aerodromes There are three other airports/aerodromes located within 50km of PIA (as the crow flies): Tooradin Airport is 35km north as the crow flies or 58km by road (about 40 minutes by road without traffic) Tyabb Airport is 31km north-west as the crow flies or 86km by road (about 1 hour by road without traffic) Leongatha Airport is 46km east as the crow flies or 73km by road (about 1 hour by road without traffic). 8

12 3 Policy Context and Previous Studies This section identifies applicable land use planning policies contained in the Bass Coast Planning Scheme together with strategic reports and studies relevant to PIA. 3.1 State Planning Policy Framework The State Planning Policy Framework (SPPF) contained in the Bass Coast Planning Scheme seeks to ensure that the objectives of planning in Victoria are fostered through appropriate land use and development policies and practices which balance relevant environmental, social and economic considerations in the interests of net community benefit and sustainable development. The SPPF refers to several key airports within Victoria. Like many rural and regional airports, PIA is not specifically identified or referenced. Key objectives and strategies within the SPPF that are general policy considerations in relation to airport land use and development are summarised below: Clause Regional planning strategies and principles: Seeks to maintain and enhance regional Victoria s competitive advantages by ensuring that the capacity of major infrastructure, including airports, is not affected adversely by urban development in adjacent areas. This Clause also introduces the Gippsland Regional Growth Plan (2014) requiring planning within the Gippsland region to consider the Growth Plan, as relevant. Clause (Gippsland Regional Growth) Infrastructure: Seeks to facilitate efficient and reliable access to markets, including airports, to support future agricultural, industrial and natural resource-based export opportunities. Clause also seeks to facilitate tourism in strategic tourism investment areas. Clause Planning for airports: Seeks to strengthen the role of Victoria s airports within the State s economic and transport infrastructure and protect their ongoing operation. Key Strategies include: o o o o Protecting airports from incompatible land-uses. Ensuring that in the planning of airports, land-use decisions are integrated, appropriate land-use buffers are in place and provision is made for associated businesses that service airports. Ensuring the planning of airports identifies and encourages activities that complement the role of the airport and enables the operator to effectively develop the airport to be efficient and functional and contributes to the aviation needs of the State. Note: Clause seeks to recognise and protect the existing roles of Melbourne Airport and supporting smaller airports in Victoria including Avalon, Essendon, Moorabbin and Point Cook Airfield. Clause Planning for airfields: Seeks to facilitate the siting of airfields and extension to airfields, restrict incompatible land use and development in the vicinity of airfields, and recognise and strengthen the role of airfields as focal points within the State s economic and transport infrastructure. 9

13 Key Strategies include: o o o Avoid the location of new airfields in areas which have greater long-term value to the community for other purposes. Plan the location of airfields, existing and potential development nearby, and the land-based transport system required to serve them as in integrated operation. Plan for areas around all airfields such that: Any new use or development which could prejudice the safety or efficiency of an airfield is precluded; The detrimental effects of aircraft operations (such as noise) is taken into account in regulating and restricting the use and development of affected land; Any new use or development which could prejudice future extensions to an existing airfield or aeronautical operations in accordance with an approved strategy or master plan for that airfield is precluded. 3.2 Gippsland Regional Growth Plan The Gippsland Regional Growth Plan (GRGP) was published in May 2014 by the previous State Government. It provides a broad strategic direction for land use and development within the Gippsland region. The GRGP identifies Phillip Island s main role as a significant tourist asset for the Gippsland region attracting over three million visitors per annum. The GRCP emphasises Phillip Island as a nationally important tourism icon and includes strategies to increase and improve tourism investment and experiences including the preparation of a 20-year tourism strategy for the Island. No specific reference to PIA is made within the GRGP and the airport is not identified within the Gippsland Strategic Assets map contained within the Plan. Regional airports which are identified as hosting important local services for the region include the East Sale RAAF Base, West Sale Airport and Latrobe Regional Airport. The Future Directions for Transport map outlines regionally significant transport opportunities that will help manage and promote regional growth in line with the GRGP objectives. No specific opportunities have been identified for the PIA, however the map identifies that transport will need to be reviewed to cater for expanded tourism as well as permanent and seasonal residential growth at Phillip Island. 3.3 Municipal Strategic Statement The Municipal Strategic Statement (MSS) contained within the Bass Coast Planning Scheme provides a localised planning statement, objectives and strategies to guide and implement key strategic planning, land use and development objectives for the Local Government Area. Key references within the Bass Coast MSS that relate to PIA have been summarised below: Clause Profile of Bass Coast Shire (Infrastructure): The Clause specifically refers to the Phillip Island Airfield as a privately owned asset which provides facilities for small charter and private aircraft including helicopters. Clause Infrastructure (Transport): Acknowledges that the majority of residents and visitors to the Shire rely on road based transport modes including car and coach. PIA 10

14 is however referenced as being oriented towards the tourist market providing alternative modes of transport for visitors on the island, in addition to ferry services. Objective 5 of this Clause seeks to have an efficiently operated airfield based on tourism. To achieve this objective Council seeks to ensure that development in proximity to the Phillip Island airfield does not adversely impact on its operation. Clause Local Areas (Cape Woolamai): This Clause relates to Cape Woolamai and includes the following relevant strategies: o o Provide for the preparation of a thorough strategic review of the Phillip Island Airport site once the airport s future is confirmed; and Identify the Phillip Island Airport as an investigation area once the airports future has been determined. Within this Clause it is noted that the Cape Woolamai Parks and Trails Plan shows potential future road links leading from the existing urban area in the south into the airport site indicative of a potential future development at PIA. The Clause references the San Remo, Newhaven and Cape Woolamai Structure Plan (2008) as providing the strategic direction for the future physical form of Cape Woolamai. 3.4 San Remo, Newhaven and Cape Woolamai Structure Plan (2010) Amendment C90 introduced the San Remo, Newhaven and Cape Woolamai Structure Plan (Structure Plan) into the Bass Coast Planning Scheme. The Structure Plan describes the role of Cape Woolamai as predominately a holiday home settlement with a small convenience centre with limited scope for expansion. It notes that the low scale local convenience nature of this centre should be retained and suggests expansion of the commercial tourism precinct. Given the sensitive coastal environment however, future urban growth in this region is constrained with no scope for further expansion of the Cape Woolamai township boundaries other than potentially the redevelopment of the PIA site. The Structure Plan highlights the possibility for the establishment of commercial tourism related activity on the Phillip Island Road frontage of the Philip Island Airport site and recreational tourism uses on the balance of the airport site. More specifically it recommends: The structure plan recommends the extension of the commercial tourism frontage to include the Phillip Island Airport frontage to Phillip Island Road, which has the potential to be developed into a tourist attraction guided by an approved development plan as required by a Development Plan Overlay. In order to facilitate this, it is considered appropriate that this portion of land be rezoned from the Farming Zone (FZ) to the Rural Activity Zone (RAZ). From a tourism and transport perspective, the PIA is recognised in the Structure Plan as being an important piece of privately-owned infrastructure but it is noted that the runway length is not sufficient to accommodate larger planes. The Structure Plan acknowledges that the future of PIA needs to be determined with an investigation based on need and other development options. This must include a detailed review of the vegetation and habitat contained at the airport and adjacent coastal reserve and public access issues on the coastal reserve. No implementation actions or strategies are currently contained within the Structure Plan to guide or inform the further investigation of the future of the PIA site. 11

15 3.5 Rural Tourism Development Study (2009) The Bass Coast Shire Rural Tourism Development Study (September 2009) (RTDS) was prepared for Bass Coast Shire to identify opportunities and provide guidance on potential future sustainable tourism activities in the Shire, and to develop a policy basis for tourism uses and inclusion of these uses in the Planning Scheme. The RTDS identifies Phillip Island as the key tourist destination within Bass Coast Shire where investigation into further tourism development and infrastructure should be promoted. It identifies that Phillip Island has relatively low quality agricultural land suggesting this part of the Shire has low value for agricultural production. Phillip Island is highlighted as a Rural Tourism Investigation Precinct where rezoning of existing rural land to the Rural Activity Zone could assist in providing future complementary tourism uses for the growing destination. A number of infrastructure changes are also highlighted within the Shire which will assist with the regions tourism capacity. The Bass Highway duplication and Stony Point-Cowes Ferry are identified as a key infrastructure projects which will increase visitor capacity and access to Phillip Island. No specific reference is made within the RTDS to PIA itself. 3.6 Phillip Island Integrated Transport Study (2014) The Phillip Island Integrated Transport Study (2014) was prepared for Bass Coast Shire to guide future investment in the transport network on Phillip Island (inclusive of the transport corridor between Anderson and San Remo) by local and state governments through to The study notes that the success of Phillip Island in attracting visitors and new activity is reflected in the increasing pressure on its transport network, a trend that is likely to continue into the future. The vision for transport on Phillip Island is as follows: A transport network that supports the ongoing development of Phillip Island into a year round destination in a safe, prosperous and sustainable way, and providing all residents, businesses and visitors the opportunity to access, enjoy and share Phillip Island s unique attractions. In order to shape the transport framework to achieve the vision, there are five key principles to guide the implementation of the study: Transport network improvements Creating a vibrant and safe pedestrian and cycling network Better connections and integration across modes Development of the transport network as an attractor Partnership with Victorian Government The five key principles guide a range of short, medium and long terms actions arranged around transport modes. There are no actions or other references relating to PIA within the study. One of the road network actions recommended in the study is to construct service roads on Phillip Island Road where it goes through townships, to reduce the number of access points onto the road to improve safety and through traffic movements. This may have implications for any future development on the airport site fronting Phillip Island Road. 12

16 3.7 Rural Land Use Strategy (2014) The Bass Coast Rural Land Use Strategy (RLUS) is divided into two parts; Part 1 comprising a land analysis and investigations report and Part 2 comprising land use strategy directives Part 1: Rural Land Analysis and Investigations Part 1 of the RLUS included a review of the current planning framework, policy context and rural land use circumstances within Bass Coast Shire. It considered a wide range of Government strategies relating to tourism, agriculture, coastal protection and environmental sustainability; and included review of community engagement and consultation feedback undertaken as part of the Background Paper and Directions Paper prepared in 2010 and 2012 respectively to inform the RLUS. No specific reference is made in Part 1 of the RLUS to PIA or surrounding land in Cape Woolamai Part 2: Rural Land Use Strategy Part 2 of the RLUS responds to the analysis and investigations documented in Part 1, and sets out a recommended rural strategy for Bass Coast dividing the shire into three rural precincts. The strategy seeks to address key considerations within Precinct 3 - Phillip Island including the need to balance potentially competing interests including tourism, residents, other industry including agriculture and the environment when considering future land use and development in this area. To implement the above strategic directions, the RLUS recommends a suite of changes to planning controls and strategies including the rezoning of land at Newhaven immediately north and west of the PIA site. This recommendation would rezone the land from the Farming Zone to the Rural Activity Zone to provide for a mix of agriculture and rural based tourism north and west of the airport site see Figure 4 below. Figure 4 - Proposed Newhaven Rural Activity Zone (RLUS) Phillip Island Airport 13

17 No recommendations are made specifically in relation to the PIA site within Part 2 of the RLUS. The airport site was not identified for inclusion in the Rural Activity Zone. 3.8 Residential Land Supply and Demand Assessment (2014) The 2014 Bass Coast Residential Land Supply and Demand Assessment was prepared by Bass Coast Shire officers with independent review by Urban Enterprise and financial assistance from the former Department of Transport, Planning and Local Infrastructure (DTPLI). The assessment sought to provide information about the availability of residential land, projected demand and the estimated number of years of supply that current supply represents as at July Key findings of the report are summarised as follows: In July 2014, the total estimated residential land supply was 8,932 lots across the Shire (made up of 2,857 existing vacant lots and 6,075 lots in broad hectare lot capacity). The township of Cowes on Phillip Island was identified as having particularly high levels of total land supply (1,416 lots). Future dwelling requirements in Bass Coast could range from 427 to 491 dwellings per annum, which equates to up to 7,365 new dwellings over the 15 year period from 2011 to Based on the projected residential demand rates, there is on average 19.7 years of land supply left across Bass Coast Shire Council. No residential land supply or demand projections were provided for targeted residential areas of a smaller scale including the Cape Woolamai settlement proximate to the PIA. 3.9 Economic Development Strategy (1998) Bass Coast Shire s Economic Development Strategy (March 1998) (EDS) sets out high level economic development objectives which are intended to provide broad direction for other more prescriptive plans in various economic development fields. The EDS notes that Tourism Victoria has included the Bass Coast Shire area in the Phillip Island and Gippsland Discovery Region. Philip Island is strongly recognised for its contribution to the economic wellbeing of Bass Coast, attracting approximately 1.5 million domestic visitors and over 320,000 international visitors each year. Key tourist assets centre in and around Phillip Island including the Phillip Island Nature Park and Grand Prix circuit. The EDS does not specifically reference PIA or its role in the tourism or economic development of the region Phillip Island Airport Pre-Feasibility Study (2003) In 2003, the Phillip Island Airport Unit Trust (the Owners) commissioned what was termed a prefeasibility study to assess the adequacy of PIA to meet the island s long term demand for aviation infrastructure and possible development strategies to enable the ongoing viability and continued operation of the airport. The airport is described as a small unlicensed general aviation airport used by recreational flyers, tourist charters, a flight training school and the Air Ambulance. At the time of the report, the airport had three runways which were unsealed. The hazardous condition of the runway surfaces was identified as a limiting factor in the use of the airport. The Authors confirmed that the existing runways would need to be lengthened to accommodate any future requirements for larger aircrafts. 14

18 The Pre-Feasibility Study also concluded that whilst several new tourism projects were planned within the Philip Island and Bass Coast region, none of these projects held the prospect of increasing aviation activity to or on the Island. As such, the Report found that there is no operational justification for moving airport infrastructure from its current site to a larger site where a larger runway could be established. The Authors confirmed that the long term financial viability of PIA is constrained by its ageing facilities, high costs of maintenance and low cash flow given minimal demand for aviation services and use. An option was identified to sell part of the airport site currently unused for aviation purposes, to generate additional revenue to fund infrastructure improvements. This option would require rezoning of the land to allow non-aviation uses such as residential, airpark residential, motel, light commercial and others to occur. The alternative to this mixed use development option identified by the Authors would be to receive public funding should Bass Coast Shire require the continued operation of the airport for tourist flights and emergency services but not allow for non-aviation development. The Report proposed three development options which could be implemented as staged works towards a final developemnt solution that the Authors claim would result in a high quality general aviation airport with fully sealed runway and residential/non-aviation redevelopment occuring within a large portion of the current airport site Phillip Island Airport Land Future Uses Discussion Paper (2008) In Feburary 2008, Hansen Partnership prepared the Phillip Island Airport Land Future Uses Discussion Paper for Council to provide information regarding possible future uses for the airport site and preferred development options. The results of the Discussion Paper were intended to inform the draft San Remo, Newhaven and Cape Woolamai Structure Plan. The Discussion Paper expands on possible development options for the airport site, involving the partial or whole sale of the site as originally suggested in the Phillip Island Airport Pre-Feasibility Study Three development options are proposed, incluidng two alternatives of each category of redevelopment as follows: Commercial and Recreational Tourism (Options 1a and 1b); Commercial Tourism and Light Industrial (Options 2a and 2b); Commercial Tourism and Residential (Options 3a and 3b). Within each category, sub-option a) assumes the airport remains operational and sub-option b) assumes the airport operations cease. The Discussion Paper provides an assessemnt of the strengths and weaknesses of each development option and concludes that Option 1 is the preferred scenario for the future development of the airport land as it is consistent with exisitng policies of Bass Coast Shire and the State Government. In summary, Option 1a and 1b provide for: Development of land at the northern end of the site for commercial tourism to take advantage of exposure and tourism traffic along Phillip Island Road; Development of majority of the aiport land for one or more tourism uses that provide a tourism destination and may include temporary holiday accomodation but not permanent residential accomodation; and 15

19 Opportunities to provide fo the rehabilitation of degraded coastal vegetation in the southern part of the site. Should PIA remain operational, Option 1a envisages a single runway along the south-eastern boundary of the site and a small airport operations precinct in the east corner of the site. Should the existing operations at Phillip Island cease however Option 1b envisages a strip of new resdiential land along the south-eastern boundary of the site and a substantial public open space area in the east corner of the site to increase public open space for the Cape Woolamai township. The Discussion Paper concludes that this preferred option will maximise opportunities to capitalise on the Shire s tourism development potential whilst allowing moderate residential expansion of the Cape Woolamai settlement, and providing for the protection and rehabilitation of existing fragile coastal environments. It is noted that the report did not contain a specific appraisal of aviation needs and demands on Phillip Island. 16

20 4 Stakeholder Consultation A key component of this review was stakeholder consultation in order to gain an understanding of the airport s role, benefits, constraints and viability. Approximately 20 interviews were held with key stakeholders who were identified with the assistance of council officers. 4.1 Stakeholders Consulted The stakeholders consulted were from the the following organisations: Bass Coast Shire Council Phillip Island Helicopters Civil Aviation Safety Authority Airservices Australia Department of Economic Development, Jobs, Transport and Resources Ambulance Victoria Victoria Police Air Wing Victoria Government Aviation Services Unit Destination Phillip Island San Remo & District Business & Tourism Inc. Phillip Island Grand Prix Circuit National Vietnam Veterans Museum Phillip Island Nature Parks Beveridge Williams (consultant for the land owner) Moorabbin Flying Services 4.2 Views of Stakeholders The views of the stakeholders consulted are outlined in Table 1 below. Table 1: Views of Stakeholders Name - Position Organisation Shannon Davies - Strategic Planning Coordinator - Bass Coast Shire Council Jasmine Butler - Strategic Planner - Bass Coast Shire Council Peter Francis - Economic Development Manager - Bass Coast Shire Council Teresa Mahood - Tourism Coordinator - Bass Coast Shire Council Comments / Key points Phillip Island Helicopters business is the only business on the site. Peter Francis hasn t seen a fixed plane land at PIA for years. He thinks there is potential for more commercial use of the airport e.g. flower exports. However, he doesn t think closing the airport would have a big economic impact. The site has servicing constraints. There are other airports not too far away. The airport could be important in the event the bridge was ever unusable. There is a helipad in Cowes behind the CFA/Ambulance/SES stations that emergency helicopters often use. There were objections from nearby residents to a proposed new hangar at PIA. Council is preparing a new 20 year Tourism Strategy and Rural Land Use Study. Land to the west is proposed to be rezoned to Rural Activity Zone. 17

21 Name - Position Organisation Gary Morrison - Owner - Phillip Island Helicopters and operator of the airport Ian Batton - Chief Pilot - Phillip Island Helicopters Mark Scrymgeour - Senior Pilot - Phillip Island Helicopters Comments / Key points Gary is the owner of Phillip Island Helicopters (PIH), owner of the 5 acre corner allotment (Lot 6) and he also leases the main PIA site and operates the airport. Gary also owns and operates Tooradin Airport. Ian Batton is Chief Pilot for PIH. Mark is Senior Pilot for PIH. PIH has 5 full-time and 9 part-time staff. Ambulance Victoria uses PIA to transfer patients to helicopters. They have had up to three ambulances at the airport at one time. Proposed new CASA laws could require helicopters to land only at a designated heliport. New regulations coming in 12 months. Helicopters may not be allowed to land in Cowes in the future due to houses nearby. PIA is used by emergency services aircraft from time to time for refuelling. PIH has a Jet A1 fuel supply. Police Air Wing uses this facility regularly. They are a big user. PIH had 2502 flights in They expect about 2750 flights for In addition there are about 300 other helicopter flights per year at the airport. For fixed wing aircraft there were 172 flights in [Note, a flight is two movements; one landing and one take-off.] It is only 25 minutes flying time from Melbourne s CBD to PIA by helicopter. Sky diving is provided at PIA. A fixed wing aircraft (Airvan) comes from Tooradin Airport to PIA and picks up the sky divers. They have been reluctant to grow fixed wing movements for tourism or training due to noise concerns. They don t want to upset their neighbours who are very close. Having said that they do see potential in pilot training. Moorabbin Airport is getting busier every day. However, they would have to spend considerable funds on the runway and lighting to build up the fixed wing activities. Plus they don t have a long term lease to invest in the airport. With a longer term lease they could build up fixed wing business: sky diving, charters from Melbourne, training etc. Gravel runway does limit activity. There once was a business based at Essendon Airport that would fly passengers in a Chieftain aircraft to PIA for the penguin parade, up to five aircraft per night. This ceased several years ago, probably due to the popularity of tour buses. Important: If land around the heliport is developed it would be essential to maintain appropriate flight paths in and out for helicopters in accordance with CASA requirements. The location of the heliport is very good being strategically positioned on the main road just when visitors first arrive on the Island. A restaurant is a possibility on the site like there is at Tooradin Airport. PIH has good incremental growth. Looking at introducing helicopter training in the future. Fixed wing aircraft movements are relatively low but have had multiple aircraft using the airport during the motorcycle grand prix in the past. 18

22 Name - Position Organisation Grant Hailes - Managing Director - Beveridge Williams (consultant for land owners) Rod Patch - Co-owner of the PIA site and local real estate agent Toby Guthrie - Air Operations Manager - Air Ambulance Victoria Comments / Key points PIA was closed 4-5 years ago due to costs and lack of revenue. Reopened as a goodwill gesture and to help pay land tax and Council rates. PIA needs a new runway due to CASA requirements not being met. There are environmental constraints in the middle of the site. Runway length is also an operational constraint. There is only one runway which can t be used in strong crosswinds or at night. With East Link, Bass Highway and other road improvements it is a very quick drive from Melbourne now. Helicopters can also land at the Grand Prix track. The Vietnam Veterans Museum have indicated they would like some more land. PIH operates from Gary Morrison s land (Lot 6) and from the land leased from the airport site owners. The airport site owners could potentially sell some more land to the museum and PIH. PIA does not have a sustainable future. Gary Morrison owns 5 acres on the corner, and leases the balance of the airport site itself. The airport can t continue due to a number of constraints and weaknesses. Runway length and fencing are inadequate. Runway length is too short for fixed wing air ambulance (i.e. King Air B-200 aircraft). Air ambulance helicopters land either at the accident location or at the rear of the SES Centre in Cowes. Rent paid by Gary Morrison is $40,000 per year. There was a flying school at PIA which made it viable but it closed. There was a lot more use of the airport 10 years ago but this has declined significantly over time. [General Aviation activity in Australia generally has been declining over the last few years, refer BITRE.] PIA does not have a viable future. Air Ambulance Victoria (AAV) fixed wing aircraft have not used PIA for at least 10 years. Their helicopters have used the airport infrequently in the past, like the police, for refuelling if required due to activities in the area. Their helicopters usually land at the helipad in Cowes, the GP circuit or in paddocks as required. The airport is very close to Melbourne. In the last 6 months there were 12 patients that needed to be transported from Phillip Island by helicopter. None were transported from PIA. They were picked up at places such as the GP Circuit, Big 4 Caravan Park, Penguin Parade. No use of PIA to retrieve a patient in the last 6 months. GP circuit has a helipad. PIA is not significant for AAV for medical use, but it is an alternative pick up facility if required and is good for refuelling when required. They do use Latrobe and Leongatha airports and other local helipads. 19

23 Name - Position Organisation Eddie Wright - Operations Manager South Coast District - Ambulance Victoria Brandan Francis - Pilot - Victoria Police Air Wing Comments / Key points Eddie could not recall Ambulance Victoria (AV) having picked up any patients at PIA for 1-2 years (however, this does not accord with the advice of PIH). He didn t think AV s King Air B-200 fixed wing aircraft can land there due to their size. Their helicopters usually land at the helipad in Cowes, the GP circuit or in paddocks as required. PIA is a refuelling point if helicopters need fuel to get back to Essendon or Traralgon due to operations in Bass Strait for example. However, they can also refuel at Tooradin Airport, which is very close. The helicopters are based at Essendon or Traralgon and can fly from there to Phillip Island and back without needing to refuel. Their fixed wing aircraft use Leongatha Airport. PIA is not a significant airport for Ambulance Victoria, but it is an available alternative if required. The Police Air Wing has used PIA in the past, infrequently, only to refuel because it had a supply of Jet A1 fuel used by the police helicopters. Brendan was not sure if the airport still supplied Jet A1 [it does]. Brendan had not flown to PIA for some time. They use the helipad in Cowes more often but it doesn t have a fuel supply. The police helicopters can land virtually anywhere there is an open space, particularly for emergency situations, and don t need an airport unless they need to refuel. Stephen Peppard - Sales and Marketing Executive - Phillip Island Nature Parks Stephen was a former pilot at Phillip Island Helicopters. There were many patient pick-ups at the airport by Air Ambulance helicopters. Very important when major events are on and roads are busy. There was a fixed wing scenic flights operator based at the airport in the past. There has been very limited investment in maintaining the runway over recent years. No runway lighting any more. Moorabbin and Essendon Airports are getting busier, hence the satellite airports will become more important to take overflow from these metropolitan airports. It would be sad if the airport closed. The Island may need it if there was a major emergency. Key infrastructure upgrades that would be needed to sustain the airport are sealing of the runway and taxiways, installation of lighting and construction of hangars for aircraft storage that could be leased to private aircraft owners. Charter flights to Tasmania and the Bass Strait Islands could be reintroduced. Some non-aviation development should be considered to help fund upgrading of the airport, such as a Residential Air Park (fly-in community). To do this the runway may need to be re-aligned. 20

24 Name - Position Organisation Matthew Jackson - Chief Executive Officer - Phillip Island Nature Parks Fergus Cameron - Managing Director - Phillip Island Grand Prix Circuit Comments / Key points Phillip Island Nature Parks (PINP) is planning a $60-$70 million upgrade of the Penguin Parade Visitor Centre and is seeking funding from the State Government. Record tourism year in Strong performance and growth. 576,000 visitors per year. 33% or 160,000 are Chinese now the dominant international market. Peak night is 3800 visitors. No.2 tourist destination in Australia. $402m direct and indirect economic impact for the State. $151m direct to the State ($125m in 2011). $93m to Bass Coast (48%). 158 FTE, largest employer. There are places for helicopters to land at the Penguin Parade in emergency situations only. Other helicopters not allowed to land at the park due to environmental issues. The helipad at PIA is critical for the PINP business to cater for VIPs and high rollers who want to fly direct from the Melbourne CBD to the penguins. This is more efficient than fixed wing and takes significantly less time. They get about 50 groups per year flying by helicopter to PIA and then they are transferred by road to the PINP attractions. Fixed wing is not important to PINPs, groups are too big. PINP sell helicopter transport as a high end option for visitors as part of an experience for spending time on the Island. Couldn t see tourism growing significantly due to an airport, unless it could take much larger aircraft. Road access to the Island is now very good and caters well for the self-drive tourist market. There are other alternatives for helicopters to land on the island at Cowes, the GP circuit, paddocks etc. Phillip Island Grand Prix Circuit has an approved helipad in the Rural Activity Zone (on land to the west of the Circuit). This gets used in major events (e.g. Moto GP, Superbikes, and V8 Supercars). They have a planning permit from Council. Fergus indicated that they are not reliant on the airport. The Grand Prix Circuit has no formalised package arrangements with the PIA. Back in1989/90 with the Moto GP, he estimated that up to 100 fixed wing aircraft visited the Airport. For last year, he is not sure if there were any. Last year s GP was relatively quiet but they still had about 20 helicopters visit the Grand Prix Circuit. They have helicopters visiting on a regular basis for events such as vehicle launches, driver experience days etc. They go direct to the Grand Prix Circuit to avoid ground transport connection issues from PI Airport. For major events, they have a medical centre. This can comprise up to 90 medical staff and two operating theatres. A helipad is located beside the medical centre (behind the pit building). It gets used frequently for medical air lifts. The Grand Prix operates (i.e. for events) 280 days per year. Emergency management is a risk that needs to be addressed Phillip Island would be very isolated if something happened to the bridge it would be reliant on air and sea transportation. 21