Access dispute in relation to declared service provided by Sydney Airport Corporation Limited
Virgin Blue Airlines Pty Limited has notified the Australian Competition and Consumer Commission, under Part IIIA of the Trade Practices Act 1974, of an access dispute with Sydney Airport Corporation Limited.
The dispute relates to the method of allocating costs for access to the Airside Service between airline users of that service and the basis on which the price for access to the Airside Service should be levied. The declared Airside Service is:
The service for the use of runways, taxiways, parking aprons and other associated facilities necessary to allow aircraft carrying domestic passengers to:
(a) take off and land using the runways at Sydney Airport, and
(b) move between the runways and the passenger terminals at Sydney Airport.
The ACCC has commenced the arbitration process for this access dispute. Given that the legislation contemplates that arbitrations be conducted in private, the ACCC will not be making any public comment at this stage.
Release # MR 025/07
Issued: 5th February 2007
BACKGROUND
The ACCC is vested with arbitration powers enabling it to make directions and 'do all such things as are necessary or expedient for the speedy hearing and determination of the access dispute'. For the ACCC to engage in arbitration, an access seeker and/or an access provider must notify the ACCC of an access dispute.
Where the parties are 'unable to agree' on one or more aspects of access to a declared service, either party may refer the matter to the ACCC for arbitration. Where the ACCC is notified of an access dispute, it must determine the matter unless it decides to terminate the arbitration or the notification is otherwise withdrawn.