The Australian Competition and Consumer Commission today issued a preliminary decision to oppose a proposal by Airservices Australia to temporarily increase prices for terminal navigation and aviation fire-fighting and rescue services.
ACCC Chairman, Professor Allan Fels, said that while Airservices has shown a willingness to lower charges where possible, it is now seeking to increase prices at a time when the aviation industry is experiencing a downturn in activity.
"This stems from the short-term nature of its pricing policy", he said.
"As the ACCC indicated 12 months ago, it expects Airservices to provide a pricing proposal that takes into account likely developments over the medium term. A longer-term approach to pricing would provide better incentives for Airservices to innovate in order to minimise costs.
"Airservices' current pricing approach tends to result in the highest charges when airlines are under the greatest financial pressure.
"The additional uncertainty this creates for airlines could hinder continued investment in aviation services. This ultimately affects the quality of services delivered to consumers".
The ACCC has consulted with interested parties in making its decision and is seeking further submissions on its preliminary view. These will need to be lodged with the ACCC by 6 June 2003.