ACCC not to object to price changes for aviation rescue, fire fighting services

22 December 2005

The Australian Competition and Consumer Commission will not object to a proposal from Airservices Australia to change the prices of its aviation rescue and fire fighting services, ACCC Chairman, Mr Graeme Samuel, said today.

Airservices Australia is the monopoly provider of fire fighting and rescue services at Australian airports and is required, under the provisions of Part VIIA of the Trade Practices Act 1974, to notify the ACCC of proposed price increases.

"This pricing proposal, which changes the structure of Airservices' pricing, was developed after the ACCC objected to proposed price increases for Airservices' ARFF services in 2004", he said. "The ACCC was concerned that the previous pricing structure was not likely to be efficient or equitable.

"Airservices continues to face incentives to reduce its costs through the administration of long-term pricing proposals. The new pricing methodology proposed by Airservices will promote economic efficiency.

"Given that it does not appear such competitive entry into ARFF services will occur during the period of Airservices proposal, the ACCC maintains its view to not object to Airservices' proposal".

A copy of the ACCC's final view and Airservices Australia's formal price notification will be made available on the ACCC's website.

Release number: 
MR 329/05
ACCC Infocentre: 

Use this form to make a general enquiry.

Media enquiries: 
Mr Graeme Samuel - 0408 335 555
Ms Lin Enright - (02) 6243 1108