Sydney Airport stops certain price rises after ACCC concerns

Sydney Airport Corporation Limited has confirmed that it will not increase charges for aircraft parking for regional airlines unless the charges are notified to the Australian Competition and Consumer Commission.

"The ACCC has reminded Sydney Airport that the Trade Practices Act requires it to notify the ACCC of any proposed increase in aircraft parking charges for regional airlines serving passengers travelling within NSW," ACCC chairman Graeme Samuel said. "Accordingly, Sydney Airport will not increase charges for aircraft parking for regional airlines unless those prices are notified to the ACCC."

Under the prices surveillance provisions of the Trade Practices Act 1974, the ACCC assesses proposed price increases for services that Sydney Airport provides to regional airlines operating regular passenger flights wholly within NSW. The ACCC can decide to object or not object to the proposed price increases.

The ACCC is currently assessing a formal proposal by Sydney Airport to increase charges for the provision of certain services to regional airlines. Under that proposal, Sydney Airport proposed increases by a maximum of 2.9 per cent. This included a charge for aircraft parking at the apron—that is, parking at, or in close proximity to, the terminals.

When the ACCC consulted with the NSW regional airline industry, concerns were raised that the proposed increases were only part of a much larger proposed increase to regional airlines by Sydney Airport. The concerns related to additional charges for regional airlines parking longer than 45 minutes at the apron and in general aviation areas which were in addition to the 2.9 per cent increases already notified to the ACCC.

Regional Express stated that the proposed increases, in addition to those notified to the ACCC, would result in an increase in its costs by approximately $3.1 million per annum.

The ACCC continues to assess Sydney Airport's proposed charges that have been notified. Further information on Sydney Airport's price notification is available on the ACCC's website at www.accc.gov.au/aviation. The ACCC expects to make a decision in September 2010.