Hobart Airport CEO outlines strategies for growth

Addressing the annual conference of the Australian Mayoral Aviation Council in Tasmania this week, Hobart Airport's Rod Parry outlined his vision for development of the facility.

Parry believes that the geographic location of the airport means that it is never going to be a hub; and that it is unlikely to attract international airlines.

"So there's no point in trying to grow by getting additional flights because that's not going to be sustainable," he told the AMAC delegates. "What we need to do is diversify away from a reliance on aero-related revenue and start looking at more long-term sustainable business models.

"In order to do that we need to form long-term strategic partnerships with the airlines... to get them to bring infrastructure into the airport, whether it's engineering facilities, airline support functions, administrations, training. If they build the infrastructure, or we build it for them, that provides the adhesion to get them to stick here; and that then becomes a long-term sustainable revenue stream."

Parry's approach to building the airline traffic revenue is decidedly proactive. He cited a specific case where a new Jetstar route linking Hobart
with the Gold Coast was launched, after a Hobart Airport initiative to build the business case in conjunction with Gold Coast Airport and the relevant tourism entities.

"Jointly we put a package together that attracted the airline in terms of airport charges and marketing. That route has now been operating for nine months and it's profitable for Jetstar, it's profitable for both airports."

But the Parry vision is broader than that...

"We are obviously going to be encouraging passenger growth, but in parallel with that we will be looking for more aeronautical-related developments. We are going to be broadening our aeronautical partnerships to get long-term strategic relationships with airlines. We want to be a lot cleverer about this.

"When the Australian Antarctic Division sets up, that becomes a lead tenant to open up that part of the airport. I have already started talks with a major freight logistics company about the possibility of having a significant air-road freight logistics down there.

"The fact that we have the AAD there also starts to raise some very interesting possibilities...We know that the other Antarctic nations, excluding America, are anxious to explore all options. I'd be very keen to get their facilities here.

"That's the sort of new aeronautical business I want to develop, in conjunction with passenger growth."

Rod Parry is also keen to see a return of the tiger brand to his airport. The carrier had eight per cent of the traffic prior to its six-week suspension recently, while Virgin had 39 per cent, Jetstar 38 per cent and Qantas 15 per cent.

"The importance for us of getting Tiger back is, not so much what they pay us, but what they have in terms of controlling the market. They have the ability to inject real competition into the market and keep fares at a low level.

"Before the suspension you could get a Hobart-Melbourne fare for around $80, while currently the cheapest fare is around $190. So that's the sort of effect they do have on the market and that's why I'm anxious to get them back."