The Australian Competition and Consumer Commission today issued its draft decision on proposals to increase aeronautical charges to recover the cost of a range of projects at Melbourne Airport.
The draft decision is in response to an application by Australia Pacific Airport Melbourne for approval to increase landing charges to enable recovery of the cost of a number of new investment projects. The investments included the extension of the elevated road that services the terminal buildings, widening of the southern freight
apron and a number of smaller projects concerned with environmental management. It also includes a number of projects aimed at enhancing levels of service and safety in the international terminal.
"The ACCC's draft decision is to approve an increase in the landing charge of 8.6 cents per tonne and an increase in the international passenger charge of 2.77 cents per tonne", ACCC Chairman, Professor Allan Fels, said today. "The pre-GST increases are 7.8 cents per tonne and 2.52 cents per tonne respectively.
"The increases in the draft decision are less than those sought by APAM.
"APAM's proposal included a number of projects which the Federal Airports Corporation had committed to prior to the transfer of the lease of Melbourne Airport to APAM. These projects include the widening of the southern freight apron and the installation of an air monitoring station.
"The issue also arose recently when the operator of Darwin Airport sought approval to increase charges to recover the costs of two taxiway projects which were substantially completed by the FAC.
"These two proposals bring to the fore the question of whether the costs of investments initiated and/or undertaken by the FAC should be considered recoverable by the new private operators of the airports.
"The ACCC's draft decision is that projects which the FAC had committed to should not be recoverable through the new investment pass through provisions.
"A number of factors were relevant in reaching this position. One was that the pass through provisions were designed to provide incentives for the timely development of necessary new aeronautical infrastructure. Another was that no commitment was made to airport bidders to allow pass through on any particular new investments,
including the costs of investments undertaken or initiated by the FAC".
The ACCC has invited interested parties to comment on the draft decision.