Virgin Blue access request at Melbourne Airport

The Australian Competition and Consumer Commission today issued a paper in response to an application by Virgin Blue for a determination on whether Melbourne Airport’s Multi User Domestic Terminal is declared under section 192 of the Airports Act 1996.

"A determination that the MUDT is declared gives current and potential airport users the right to have a dispute about terms and conditions of access arbitrated by the ACCC", ACCC Chairman, Professor Allan Fels said.

"The application follows recent negotiations over the terms on which Melbourne Airport will grant Virgin Blue access to the MUDT on a long term basis.

"The paper issued today outlines the ACCC’s assessment process and identifies issues for comment.

"The legislation requires the ACCC to assess the application against two criteria. One is whether the service is ‘necessary for the purposes of operating and/or maintaining civil aviation services at the airport’. The second is whether the service is ‘provided by means of significant facilities at the airport, being facilities that cannot be economically duplicated’. Relevant issue in considering these criteria are as follows:

• are alternatives to the MUDT currently available to the new entrants?

• could Virgin Blue or another access seeker build their own facility?

• if so could it be done economically?

"The ACCC now invites submissions by 13 April to assist in its assessment process".