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ACCC Calls For More Effective Airport Regulation

Notebook Used In Airport

The ACCC has called for a fairer regulatory regime for Australia’s major airports, in a submission to the Productivity Commission released earlier today.

“In a large country like Australia, airports are critical pieces of infrastructure that support business travellers and drive tourism and economic growth. Australian airports now provide for over 150 million airline passengers each year,” ACCC Chairman Rod Sims said.

“Providers of key monopoly infrastructure are typically regulated to ensure they will not exploit their market power to the detriment of consumers and the broader economy. This is not currently the case with Australia’s major airports.”

The ACCC is currently only able to conduct limited monitoring of the Sydney, Melbourne, Brisbane and Perth airports.

Mr Sims added that the credible threat of regulation could constrain monopoly behaviour and curtail the types of predatory pricing that were detrimental to customers.

The industry watchdog also noted that the airports it monitored had significantly raised their aeronautical charges to airlines over the past decade, which passengers had been forced to soak up.

Revenue per passenger has increased in real terms in the last 10 years by: 59 per cent at Perth Airport, 36 per cent at Brisbane Airport, 31 per cent at Melbourne Airport and a relatively small 15 per cent at Sydney Airport.

 

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