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AVIATION BUSINESS DEVELOPMENT AND MARKET RESEARCH · PDF fileAVIATION BUSINESS DEVELOPMENT AND MARKET RESEARCH REPORT . 6 AUGUST 2014 . REPORT TO THE BUSINESS ENTERPRISE COMMITTEE

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  • ROCKHAMPTON AIRPORT

    AVIATION BUSINESS DEVELOPMENT AND MARKET RESEARCH REPORT

    6 AUGUST 2014 REPORT TO THE BUSINESS ENTERPRISE COMMITTEE OF ROCKHAMPTON REGIONAL COUNCIL

  • 2 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    Aims and objectives

    Methodology

    Research results

    Analysis

    Recommendations

    Outcomes

    Airline business case summary

    CONTENTS INTRODUCTION

    OVERALL AIM OF THE PROJECT The economic development of the Rockhampton region though increased air services and associated resources industry activity.

  • 3 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    Workshop & Airline

    Business Case

    Aviation Environment

    Consumer demand

    Business demand

    Three broad factors deliver growth in air services:

    1. Increased local catchment demand

    2. Increased demand from visitors to the region

    3. A step-change in the aviation offer to consumers

    DRIVERS OF GROWTH AND PROJECT METHODOLOGY METHODOLOGY

    METHODOLOGY

  • 4 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    PROJECT PLAN METHODOLOGY

    Outcomes-focused methodology: scoping workshop first

    Qualitative research next – resources drive the demand –

    what do they want from air travel

    Quantitative research last – gather the consumer and

    business data

    Workshop the data streams, SWOT and identify

    Rockhampton’s USPs

    Develop the airline business case and strategies to engage

    resource companies.

  • 5 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    Airbiz built a business case to airlines, targeted to the outcomes specified by Council, based on the research conducted.

    The post-research workshop concluded that a market was demonstrated for direct services to Sydney and Townsville.

    Townsville presented the stronger business case with more strategic benefits for Rockhampton Airport.

    AIRLINE BUSINESS PLAN METHODOLOGY METHODOLOGY

    Airline business case

    Demand: Consumers

    Passenger

    Business

    Quantitative: local business usage

    Qualitative: resource industry

    drivers

    Supply: aviation

    Capacity

    Operational considerations

    Strategic fit

    Outcome Inputs

  • 6 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    RESEARCH RESULTS SUMMARY RESEARCH

    Qualitative Galilee Basin Proponents (5)

    Export labour market is the best opportunity.

    Collaborative approach with other centres; flying under

    the radar; “optimum” dormitory town

    Gracemere: Target large, regional/national supply

    chain, secondary and tertiary industries

    Regional aviation hub aspirations are currently

    unrealistic.

    Business survey (263) Larger businesses and resource

    industry fly more. Good to encourage those groups.

    Strongest demand for services to SYD/MEL, then

    CNS/TSV.

    Limited appeal for direct MOV/EMD/NTL.

    Galilee: strong interest in serving the needs of the

    Basin.

    Gracemere: limited demand from local SMEs.

    Passenger survey (1058) Pax are roughly half and half, locals vs visitors. Most travel for business.

    Profile = regional airport /business focus.

    FIFO/DIDOs =1 in 6 of all pax.

    Locals travel for all reasons; Visitors = business / VFR.

    SYD/MEL/TSV are the most popular new, direct routes.

    Research key findings

  • 7 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    SUMMARY OF QUALITATIVE DEVELOPMENT CONCEPTS QUALITATIVE RESEARCH

    Concept 1. Ground-based logistics hub

    Some appeal to southern

    proponents

    But contractors and supply chain will

    drive the decision to locate, not the

    resources proponents

    Concept 2. Outbound FIFO labour

    source market

    Appeal to most proponents,

    dependent on their workforce planning

    Skills in underground mining are a

    particular motivator

    Concept 3. Aviation hub

    No appeal, risk perceived around connecting flights

    versus single point- to-point flight

  • 8 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    Population

    Economy

    Infrastructure

    Lifestyle

    CONCEPT 2: WORKFORCE BASE REQUIREMENTS QUALITATIVE RESEARCH

    NECESSARY Population with critical mass to support FIFO Affordable housing Capacity for growth Aviation capability (regional base, hangars, MRO) Political will Local support

    DESIRABLE Attractive lifestyle/ education /partner employment Existing skill base Training and recruitment providers Affordable/ flexible labour Hub export potential

  • 9 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    CONCEPT 2: OUTBOUND FIFO LABOUR SOURCE MARKET QUALITATIVE RESEARCH

    Proponent C: POTENTIAL • Interested in skill base. •Rockhampton is the “optimum”

    FIFO residence •no one region will be single source

    workforce base •Regions should co-operate

    Proponent B: SOME POTENTIAL •Planning regional recruitment,

    North/South Qld split •Would consider CQ, Need a pod-

    like no./crew to generate a flight. •Charter flying likely

    Proponent E: LONG SHOT •Refused to name regional city

    source markets. •Economic benefits to regions, flow

    through etc. •Will engage with stakeholders as

    the project progresses

    Proponent D: POTENTIAL • Interested in skill base • Interested in regional workforce,

    regions need to be pragmatic. •Will have SEQ base and CQ base –

    could be ROK/GLT/MKY •Ready to talk to RRC after FID

    Proponent A: LONG SHOT •Brisbane hub, Contractor will drive

    recruitment policy •Economic benefits flow through,

    local industry participation plan •Register with ICN (industry

    capabilities network)

  • 10 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    Male, 54% Female, 46%

    GENDER

    12%

    20% 18% 22%

    18%

    18-24 25-34 35-44 45-54 55-64

    AGE

    NB: Gender and age are based on unweighted data

    LOCALS (n=488)

    VISITORS (n=570)

    GENDER:  Male  Female

    46.5% 53.5%

    61% 39%

    AGE:  18-24  25-34  35-44  45-54  55-64  65 or older

    14% 13% 19% 20% 21% 13%

    11% 26% 17% 23% 16% 8%

    = statistically significant

    FIFO 12%

    DIDO 4%

    Working, but not

    FIFO/DID O

    68%

    Not working

    16%

    FIFO/ DIDO – ALL DEPARTING PAX.

    DEMOGRAPHIC PROFILE PASSENGER RESEARCH

  • 11 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    AMONGST THOSE WHO WORK

    TOTAL LOCALS (N=383)

    VISITORS (N=498)

    FIFO 14% 7% 19%

    DIDO 5% 8% 3%

    Neither 81% 85% 78%

    EMPLOYMENT AND FIFO/DIDO PASSENGER RESEARCH

    Working full time

    75%

    Working part time

    9%

    Student 3%

    Home duties/ not

    working 4%

    Retired 9% EMPLOYMENT SUMMARY

    Base: Total weighted sample (n=1,058)

    DISTANCE FROM HOME TO WORK (DOOR TO DOOR)

    5%

    24%

    5%

    20%

    47%

    1%

    14%

    3%

    19%

    62%

    Other

    > 100 km

    50-100 km

    20-50 km

    < 20 km

    Locals Visitors Base: Full time/ part time workers (n=887)

    DISTANCE FROM HOME TO WORK

    > 100 KM (N=173)

    Car/ motorbike 25%

    Bus/ train 1%

    Plane 75%

    TRANSPORT TO WORK

  • 12 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    PASSENGER MIX PASSENGER RESEARCH

    “Do you live in Central Queensland or were you visiting the area?”

    Rockhampt on RC 31%

    Gladstone RC 1%

    Livingstone RC

    14%

    Visitor 54%

    Locals – 46% Visitors – 54%

    4%

    24%

    65%

    4%

    2%

    Overseas

    Interstate

    Other Queensland

    Other Central QLD

    Emerald/ Central Highlands

    “Where do you live?”

    Base: Visitor sample (n=570)

    100%

    11%

    99%

    56% 48%

    89%

    44% 52%

    97% 100% 100%

    CONSIDER ROK AIRPORT TO BE LOCAL AIRPORT

    Base: Total 2014 weighted sample (n=1,058)

  • 13 ROCKHAMPTON AIRPORT / BUSINESS DEVELOPMENT & RESEARCH DRAFT REPORT 11569r01 06/08/2014

    PURPOSE OF TRAVEL PASSENGER RESEARCH

    1%

    1%

    1%

    2%

    8%

    25%

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