ACCC does not object to proposed price increases by Airservices Australia
The Australian Competition and Consumer Commission does not object to a proposal by Airservices Australia to increase prices for some of its monopoly services, such as air traffic control, from 1 July 2012.
The services are used and paid for by airlines and other aircraft operators landing at Australian airports and flying in Australian airspace.
The proposed price increases will put into effect the second year of Airservices’ five-year pricing agreement. In summary:
- Terminal navigation charges will increase at 24 airports by between 0.2 per cent and 3.5 per cent, and will decrease at six airports by between 1.0 and 5.1 per cent.
- Charges for aviation rescue and fire-fighting services will increase at 21 airports by between 2.4 per cent and 10.4 per cent, depending on location and aircraft category.
- Charges for en route services will decrease by between 0.7 per cent and 1.1 per cent.
The ACCC’s view is that Airservices has made sufficient progress on its commitments to improve consultation with industry on capital expenditure and to develop internal drivers of efficiency. These commitments were a critical component of the ACCC’s consideration and acceptance of Airservices’ five-year pricing agreement in 2011 as they help to ensure that Airservices invests prudently and efficiently manages its costs.
Airservices is now providing its customers with more information that allows them to better assess and provide input on the costs and benefits of major capital projects. This has been a significant step in the right direction.
In forming its view, the ACCC consulted with Airservices’ stakeholders, including airlines and aviation representative bodies. Stakeholders were overwhelmingly supportive of the changes made by Airservices to date. However, stakeholders also noted that there was still scope for further development and improvement. The ACCC expects to see further progress on these matters in future proposals by Airservices.
Airservices intends to implement its proposed prices on 1 July 2012.