The Australian Competition and Consumer Commission today issued a final decision not to object to a proposed charge by Airservices Australia for a terminal navigation service at Avalon Airport.
A price of $5.49 (incl. GST) per tonne will apply to aircraft landing at Avalon aerodrome from 1 February 2010.
"The Civil Aviation Safety Authority has identified the need for a terminal navigation service at Avalon Airport," ACCC chairman Graeme Samuel said.
Terminal navigation services are supplied at specific airports on the basis of safety regulations, and prices for these services differ across locations.
"Although there is considerable uncertainty surrounding future demand at Avalon, Airservices has agreed to review the price should the activity at the location change dramatically over the next twelve months," Mr Samuel said.
Airservices is the monopoly provider of en-route air navigation, terminal navigation and aviation rescue and fire-fighting services in Australia. These services are declared under Part VIIA of the Trade Practices Act 1974, which means that Airservices must notify the ACCC when it wishes to increase prices, and the ACCC may object or not to the proposed increases.
"The charge will apply for an interim period, pending the ACCC's consideration of Airservices' long-term pricing proposal, expected in 2010–11, which will cover all its regulated activities."
The ACCC received the price notification for Avalon Airport from Airservices on 21 December 2009. Under the Trade Practices Act 1974, the ACCC has 21 calendar days from receiving a notification to decide whether or not it objects to the proposed price. However, prior to the 21 days expiring, the ACCC granted Airservices an extension to today to provide affected parties with a sufficient opportunity to comment on Airservices' proposal.