ACCC to review price increases for air navigation services

The Australian Competition and Consumer Commission has issued a paper seeking public comment on a pricing proposal by Airservices Australia (Airservices), ACCC Chairman, Mr Graeme Samuel, said today.

Airservices is proposing a long-term pricing arrangement that will apply for five years, beginning in October 2004, covering all its air navigation services throughout Australia.

The pricing proposal contains recommendations for increases in the prices of terminal navigation and aviation rescue and fire fighting services and decreases in the prices charged for enroute navigation services.

The ACCC is seeking submissions by 14 September 2004.

A copy of the issues paper and Airservices' pricing proposal is available on the ACCC's web site (see below).

Background

Airservices Australia is the monopoly provider of en-route air navigation, terminal navigation and aviation rescue and fire-fighting services 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.