Regional Capitals Australia (RCA), Media Release, 5 November 2025

Regional Capitals Australia (RCA) has today welcomed the release of the terms of reference for two inquiries into regional aviation.

The first, a Productivity Commission inquiry into the key factors that determine regional airfares. The second, a Senate committee inquiry into the state of Australia’s aviation sector and its ability to deliver reliable and affordable services to rural, regional and remote communities.

RCA acting Chair Cr Kevin Mack said the release of the terms of reference for both inquiries was a welcome step towards ensuring regional air travel was safe, affordable, accessible and sustainable.

“Regional aviation is essential to the economic and social well-being of regional Australia,” Cr Mack said.

“Air travel provides fast and efficient connections for residents, businesses, emergency services and tourists, and access to healthcare, education and jobs.

“Without it, people needing to travel between regional capitals and the city would need to drive hundreds, if not thousands, of kilometres,” he said.

Cr Mack said an RCA delegation was in Canberra last week to meet with decision makers.

“The collapse of Bonza Airlines and Rex Airlines entering voluntary administration last year exposed the vulnerability of regional aviation routes and heightened anxiety for everyone who depends on reliable air services,” Cr Mack said.

“The current attention on regional aviation, including the welcome action taken during Rex’s voluntary administration period, shows the Federal Government understands the importance of regional air services in regional, rural and remote Australia.

“To complement the work to be undertaken during these inquiries, we want to partner with the Federal Government to ensure our regional airports are financially viable and sustainable, and Australians living beyond the state capitals are able to travel by air.

“Regional capitals are the heart of regional Australia and are growing quickly. We need Federal Government investment to continue to operate and maintain infrastructure, like airports, that ensure our cities are liveable, connected and resilient.

“The vast majority of Australia’s regional airports face significant financial strain. Around 60 per cent operate at a loss and nearly 40 per cent expect ongoing deficits, due mainly to ageing infrastructure, high security costs and disproportionate regulations,” he said.

Regional Capitals Australia has asked the Federal Government to:

• take further action to secure the on-going viability of regional aviation routes;
• establish a recurrent federal funding stream for both capital and operational security costs; and 
• resolve inequitable security requirements that impose city-level costs on low-risk regional airports.

RCA represents 21 regional capital city councils that together support more than nine million Australians and generate over $225 billion for the national economy each year. 

Cr Kevin Mack, acting Chair of Regional Capitals Australia (RCA) and Albury City Council Mayor, speaks with Fiona Fox from ARR.News (10 November 2025):

RCA general statistics

• RCA is an alliance of 21 local governments across the nation, representing those areas that play a ‘capital city’ role within their region.
• Regional Capitals are home to more than four million people and service the needs of another four million who live in surrounding areas.
• Jointly, the regional cities generate $225 billion per annum or more than 15 per cent of national economic activity.
• Our members are:

From New South Wales: Albury City, Armidale Regional Council, Broken Hill City Council, Dubbo Regional Council, Goulburn Mulwaree Council, Griffith City Council, Tweed Shire Council and the City of Wagga Wagga;
From Victoria: the City of Ballarat, the City of Greater Geelong, Latrobe City Council and the City of Wodonga;
From Western Australia: City Of Busselton, the Shire of Broome, City of Greater Geraldton, City of Kalgoorlie-Boulder, City of Karratha, and the Town of Port Hedland; and
Fraser Coast Regional Council in Queensland, the City of Palmerston in the Northern Territory and the City of Port Lincoln in South Australia.

Related story: Productivity Commission inquiry into regional airfares: Chalmers, King