The prices airlines pay Australia's major airports for aeronautical services such as use of runways and terminal facilities have increased sharply in the past two years, according to a report issued by the Australian Competition and Consumer Commission today.
The Airports price monitoring and financial report 2002-03 reviews the prices charged by Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney airports.
"The report shows that in the two years from 2000-01 to 2002-03, average prices have increased significantly at all major airports", ACCC Chairman, Mr Graeme Samuel, said.
"Average charges for aeronautical services increased at these airports by between 40 per cent and 160 per cent over the past two years".
Until recently aeronautical charges were subject to price caps and price surveillance. Since 2000-01, this approach has gradually been replaced by price monitoring.
"The removal of price caps and price surveillance means airports are no longer required to notify the ACCC prior to increasing charges for aeronautical services".
The ACCC report shows average airport costs also increased between 2000-01 and 2002-03. Mr Samuel said greater security requirements at airports since September 11 have been a significant contributor to this rise in airport costs.
However, the changes in unit costs and volumes were small by comparison to the price rises, resulting in significant increases in several measures of airport profitability.
"Aeronautical margins, as well as returns on assets, have risen", he said.