Canberra Airport told terminal application 'premature'

The Australian Competition and Consumer Commission today issued a draft decision objecting to Canberra Airport's plan to increase aeronautical charges to fund the first stage of a terminal redevelopment at Canberra Airport.

"Canberra Airport approached the ACCC seeking approval to increase aeronautical charges outside the price cap to fund the stage one works", ACCC Chairman, Professor Allan Fels, said today. "The stage one works include the construction of a car park walkway and main entrance.

"However it appears that the consultative process between Canberra Airport and the airlines has not concluded and substantial issues remain to be worked through. It would be premature to approve Canberra Airport's application while the consultative process is still under way.

"The ACCC encourages airport operators to work through a process of consultation with airlines before approaching the ACCC, and encourages airlines to take part in the process.

"The ACCC also encourages Canberra Airport to bring major projects such as the terminal redevelopment to the ACCC as a whole, rather than in a series of stages. This would be more efficient for all parties and would assist the assessment of each component in its proper context.

"The ACCC's preliminary view is that the stage one works will not significantly facilitate the operations of new entrants to domestic or international aviation. The projects appear generally to enhance quality of service but do not appear to increase or enhance the use of available capacity".