Qantas group executive of government and corporate affairs David Epstein said the "only practical means of supplying labour to Australia's economically essential resources industry locations" was by air through these airports, but some local councils were using their airports as "cash cows".

Epstein said an "overwhelming number" of emerging and regional airports had exploited a lack of competition and "uninhibited use of market power", where they were not controlled by the competition regulator.

"To our mind, if regional councils do not moderate their behaviour in this environment, there are strong arguments that they should face a regulatory framework that allows airlines to obtain a bit more cost transparency and to reach mutually acceptable commercial outcomes," he said.