On 9 September 2011, Airservices Australia (Airservices) provided the ACCC with a formal price notification proposing increases to its charges for terminal navigation and aviation rescue and fire-fighting services from 1 October 2011. Under Part VIIA of the Competition and Consumer Act 2010 (CCA), the ACCC has 21 days to respond to Airservices Australia's formal price notification. The ACCC released its decision to not object to this price notification on 22 September 2011.
This follows the ACCC's consideration of a previous formal price notification submitted by Airservices on 22 August 2011. On 8 September 2011, the ACCC released its decision to object to the proposed price increases set out in that price notification. The ACCC's decision stated that it considered the rate of return on capital (WACC) proposed by Airservices was too high. This means that Airservices would over-recover the revenue required to cover its efficient costs based on its proposed prices. Airservices has submitted that its formal price notification of 9 September 2011 addresses the concerns raised in the ACCC's decision.
The ACCC's consideration of Airservices' formal price notifications follows the ACCC's consultation on, and assessment of, a draft price notification submitted by Airservices in March 2011 as part of an informal pre-lodgement process for assessing price notifications under Part VIIA of the CCA.
The following provides all relevant documents that have been part of the ACCC's assessment of Airservices' draft and formal price notifications.
