ACCC issues third airport price monitoring report

The prices airlines pay Australia's major airports for aeronautical services such as use of runways and terminal facilities have continued to increase, with changes ranging from 2.6 per cent to 11 per cent, according to a report issued by the Australian Competition and Consumer Commission today.

The Airports price monitoring and financial report 2004-05 reviews the prices charged by Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney airports.

"This is the third year of the ACCC's role of price monitoring of airport charges", ACCC Chairman, Mr Graeme Samuel, said today. "Before this, aeronautical charges were subject to price caps and price surveillance.

"This year's report shows that prices have continued to increase in 2004-05 although to a lesser extent than those increases experienced over 2000-01 to 2002-03.  Since price monitoring was introduced revenue from aeronautical services increased by between 37 per cent and 163 per cent".

The removal of price caps and price surveillance means airports are no longer required to notify the ACCC prior to increasing charges for aeronautical services.

"The ACCC report shows that total aeronautical airport costs have increased between 2002-03 and 2004-05 for all airports, with greater security requirements at airports since September 11 2001 adding to airport costs.

"However, increased passenger numbers have seen airport costs on a per passenger basis generally decrease or slightly increase during this time and, combined with price rises, airport profitability has risen substantially over the period", Mr Samuel said.