The Australian Competition and Consumer Commission today denied the Federal Airports Corporation the full extent of the increases it claimed for airport charges related to services covering the landing of aircraft and passenger processing (aeronautical services).
"These charges are declared under the Prices Surveillance Act and the FAC must notify the ACCC of any increases," Acting Chairman, Mr Allan Asher, said today. "The ACCC had only 21 days to consider the proposed charges. This limits the extent and depth of inquiry the ACCC can undertake.
"The FAC is seeking approval of an average price increase of 13.8% across its airports. However, actual increases are only planned at Sydney, Melbourne, Brisbane, Adelaide and Perth airports.
"The ACCC has approved an average network increase of 10.8%.
"The ACCC found that operating costs had increased sufficiently to warrant some price increases. But, it had some concerns about the approach the FAC had taken to the pricing of these airport services.
"These included the loading of all price increases onto the five major airports and the use of a rate of return measure to justify the overall size of the increase. In reaching its decision the ACCC noted the assessment of aeronautical charges was complicated when there is no operational or formal accounting separation of the services from other non-aeronautical services.
"The ACCC believes the price increases allow aeronautical operating costs to be substantially recovered and that the airports where the FAC proposes price rises would continue to be profitable."
"These charges are declared under the Prices Surveillance Act and the FAC must notify the ACCC of any increases," Acting Chairman, Mr Allan Asher, said today. "The ACCC had only 21 days to consider the proposed charges. This limits the extent and depth of inquiry the ACCC can undertake.
"The FAC is seeking approval of an average price increase of 13.8% across its airports. However, actual increases are only planned at Sydney, Melbourne, Brisbane, Adelaide and Perth airports.
"The ACCC has approved an average network increase of 10.8%.
"The ACCC found that operating costs had increased sufficiently to warrant some price increases. But, it had some concerns about the approach the FAC had taken to the pricing of these airport services.
"These included the loading of all price increases onto the five major airports and the use of a rate of return measure to justify the overall size of the increase. In reaching its decision the ACCC noted the assessment of aeronautical charges was complicated when there is no operational or formal accounting separation of the services from other non-aeronautical services.
"The ACCC believes the price increases allow aeronautical operating costs to be substantially recovered and that the airports where the FAC proposes price rises would continue to be profitable."