The prices airlines pay Australia's major airports for aeronautical services such as use of runways and terminal facilities have increased by less than last year according to a report issued by the Australian Competition and Consumer Commission today.
The Airports price monitoring and financial report 2003-04 reviews the prices charged by Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney airports.
"This is the second year of the ACCC's role limited to price monitoring of airport charges. Prior to this, aeronautical charges were subject to price caps and price surveillance", ACCC Chairman, Mr Graeme Samuel, said.
"Last year's report showed that prices (as measured by aeronautical revenue per passenger) in the two years from 2000-01 to 2002-03 had increased significantly at all major airports. While 2003-04 saw lesser price increases (up to 16 per cent) and in some cases, reductions, over the past three years prices increased by between 50 per cent and 200 per cent".
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 that unit costs fell for most airports in 2003-04. Average airport costs increased between 2000-01 and 2003-04, with greater security requirements at airports since September 11 2001 adding to airport costs.
"However, the increases in unit costs since 2000-01 are small in comparison with the price rises and, combined with increased traffic, airport profitability has risen substantially over the period", Mr Samuel said.
The ACCC reports on both aeronautical measures and total airport measures.
"While the total airport measures include some activities that are not closely related to the airport business, reliance on aeronautical measures alone in the current regulatory regime does not present a complete picture.
"If the ACCC was to report solely on aeronautical measures, a number of changes to the regulatory regime would be required", he said.