This page provides details of directions and declarations under the regulatory regime that has operated since 1 July 2002. Also provided is information on the previous regulatory framework and documents detailing price assessments completed under the earlier framework.
Current regulatory regime
On 30 April 2007 the Australian Government responded to the Productivity Commission (PC) inquiry report entitled Review of Price Regulation of Airport Services, released on 27 April 2007. The government decided to continue the current approach to regulation of aeronautical prices at the major airports and has accepted the PC's recommendation that Sydney, Melbourne, Brisbane, Perth and Adelaide airports continue to be subject to price monitoring for a further six years. Canberra and Darwin airports are not subject to the formal price monitoring arrangements that took effect from 1 July 2007.
The key changes to the regime announced by the Government include:
amending Part IIIA of the Trade Practices Act 1974 (the Act) to address uncertainty regarding its interpretation following the October 2006 Federal Court decision in relation to Sydney airport
establishing a starting aeronautical asset base for monitoring airport pricing behaviour
setting clear expectations for effective commercial negotiations, including commercial resolution of disputes through processes such as independent commercial mediation/binding arbitration
amending the definition of aeronautical services to cover all aeronautical services for which airports are likely to have significant market power
introducing a 'show cause' process whereby price monitored airports may be required to demonstrate why their conduct should not be subject to more detailed scrutiny such as a formal price inquiry under the Act.
It is indicated that an independent review will be carried out in 2012, or earlier if there is clear evidence of unjustifiable increases or other misuse of market power across the price monitored airports. The Government reserves the right to re-impose price controls if airport operators are found to be misusing their market power by unjustifiably raising pries and/or imposing non-price conditions on access to aeronautical services and facilities in a manner inconsistent with the Government's aeronautical pricing principles.
The Government's response to the PC's recommendation is available at the Department of Infrastructure, Transport, Regional Development and Local Government(www.infrastructure.gov.au) and Treasury (www.treasurer.gov.au) websites.
Airport Car Parking
On 7 April 2008 the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs directed the ACCC (through Direction no.31 under the Trade Practices Act 1974) to monitor prices, costs and profits of car parking services at Adelaide, Brisbane, Melbourne (Tullamarine), Perth and Sydney (Kingsford Smith) airports.
Following the report in 2002 by the Productivity Commission on price regulation of airport services, the government replaced price caps with price monitoring.
Prior to 1 July 2002 the ACCC was responsible for prices surveillance of the following airports: Adelaide, Alice Springs, Brisbane, Canberra, Coolangatta, Darwin, Hobart, Launceston, Melbourne, Perth, Sydney and Townsville. These airports were declared under the Prices Surveillance Act 1983 (which has since been repealed and replaced with Part VIIA of the Trade Practices Act 1974) and, with the exception of Sydney airport, were subject to CPI-X price caps.
