The Federal Court, Canberra today found that taxi fees at Canberra Airport are covered by the price cap on aeronautical services.
"The ACCC welcomes this decision", ACCC Chairman, Professor Allan Fels, said today. "It confirms the ACCC’s view that taxi fees are within the price cap on aeronautical services at Canberra Airport.
"This decision is also relevant to taxi charges at other privatised airports, including the $1.60 charge proposed by Melbourne Airport. It confirms the ACCC’s view that, if Melbourne Airport proceeds with the new charge, it must reduce other charges to avoid breaching the price cap unless it can demonstrate that the charge is necessary to fund new investments.
"In April 2000 Canberra Airport introduced a fee of $2.00 on taxis proceeding from the taxi queuing area to the taxi rank adjacent to the terminal building. The ACCC took the view that the charge was within the price cap on aeronautical services. Canberra Airport sought review of the ACCC’s decision in the Federal Court.
"Justice Gyles today ruled that the charge is within the price cap because it relates to the use of landside roads at Canberra Airport. Charges for landside roads are covered by the price cap.
"Justice Gyles found that the taxi queuing area at Canberra Airport is utilised by vehicles which are temporarily stopped waiting for the opportunity to move to the rank. He regarded the area as an alternative to having taxis queuing along the main road. He considered the presence of boom gates at the head of the queuing area did not detract from the characterisation of the area as a landside road.
"The effect of the decision is that the ACCC must take the proceeds of the taxi charge into account when assessing Canberra Airport’s compliance with the price cap".