The Australian Competition and Consumer Commission has formed the preliminary view to 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.
"The ACCC is now seeking views from interested parties on its preliminary view", he said.
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.
These provisions apply only to those markets where, in the view of the Minister, competitive pressures are not sufficient to achieve efficient prices and protect consumers.
"Airservices' proposal, which significantly changes the structure of charging for ARFF services, follows a review after the ACCC expressed concerns about the efficiency of the existing structure of charges.
"A critical and threshold issue in the ACCC's consideration of the efficiency and sustainability of the proposed price structure is whether ARFF services are open to competitors entering the market.
"It does not appear that markets for ARFF services will be opened up to competition in the short term, covering the period of this price notification. It is not clear what form competition for the provision of ARFF services would take and therefore it is unclear what impact Airservices' price structure would have on incentives for competitors to enter".
On this basis, the ACCC has formed the preliminary view to not object to the proposed price structure, which appears to be more efficient that the existing charging structure.