Access to domestic terminals at Melbourne Airport should not be regulated by the Australian Competition and Consumer Commission, ACCC Acting Chairman, Mr Rod Shogren, announced today.
"Virgin Blue asked the ACCC to determine that the new Domestic Express Terminal at Melbourne Airport is covered by the access regime. Virgin Blue is already using the terminal but has not reached a long term agreement on terms of access.
"In a draft decision issued today, the ACCC notes that access regulation would give businesses wanting to compete in related markets the right to negotiate to use the facility on reasonable terms. The regime also gives a right to arbitration by the ACCC if the parties cannot agree terms of access.
"However, the terminal is already covered by price controls under the Prices Surveillance Act. In August 2000 the ACCC approved a price of $1.65 per arriving and departing passenger for use of the new terminal. This followed careful analysis of costs and passenger projections. All interested parties, including Virgin Blue, had input into the decision.
"The ACCC believes it is not desirable in the present circumstances to regulate access to domestic terminals at Melbourne Airport. In forming this view the ACCC took account of the possible impact of an access determination on investment in facilities for new entrants.
"This draft decision is based on the specific facts surrounding Virgin Blue's application. Any future request for access regulation of airport terminals will be considered on its merits.
"This draft decision is a step in an ongoing consultation process. The ACCC invites further submissions by 16 November 2001".