ACCC not to oppose pricing for a new fire service at Ayers Rock airport

The Australian Competition and Consumer Commission today issued a final decision not to object to a proposal by Airservices Australia (Airservices) for the pricing of a new aviation rescue and fire fighting service at Ayers Rock Airport. 

A fee of $13.09 per tonne will be charged on aircraft with a maximum take off weight of 2.5 tonnes or greater which use the Ayers Rock Airport.

"New Civil Aviation Safety Authority regulations identify a need for a rescue and fire fighting service to be established at the Ayers Rock Airport", ACCC Chairman, Mr Graeme Samuel, said.

"The ACCC does not object to Airservices levying a price to fund the cost of providing the rescue and fire fighting service which will provide an increased level of safety for air travelers visiting the area.

"This price will operate for an interim period, pending the ACCC's consideration of Airservices' expected long-term pricing proposal, which will cover all of Airservices' regulated activities at all Australian airports".

The ACCC has consulted with interested parties in making its decision. 

Background

Airservices Australia is the monopoly provider of en-route air navigation, terminal navigation and aviation rescue and fire-fighting services (ARFF) in Australia. These services are declared under Part VIIA of the Trade Practices Act 1974, which means that Airservices must notify the ACCC when it wishes to increases prices. The ACCC may object or not object to the proposed increases.

ARFF services are supplied at specific airports on the basis of safety regulations. Prices for these services differ across the different locations at which they are provided.

In May 2003, the Civil Aviation Safety Authority introduced new regulations that identify that once an airport has reached 350,000 passengers per annum an ARFF service should be established within 12 months. There have been over 350,000 passengers per annum using Ayers Rock Airport since 1996-97. Accordingly there is now a need for an ARFF service to be established at Ayers Rock Airport.

Airservices has proposed a temporary price of $13.09 per tonne landed for aircraft with a maximum take off weight (MTOW) of 2.5 tonnes or greater to cover the cost of providing an ARFF service at Ayers Rock Airport. Aircraft with a MTOW of less than 2.5 tonnes will not be charged for this service.  

Airservices is currently developing a five-year pricing proposal for all its regulated services to be considered by the ACCC and will be reviewing the pricing of the Ayers Rock Airport service as part of this process.