The Full Federal Court in Canberra today dismissed Canberra Airport's appeal against Justice Gyles' judgement 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.
"The ACCC was confident that the fees fell within the price cap and was disappointed that Canberra Airport chose to contest the issue to the appellate level.
"The effect of the Full Court's decision is that the ACCC's decision that it must take the proceeds of the taxi charge into account when assessing Canberra Airport’s compliance with the price cap is correct. This decision is also relevant to taxi charges at other privatised airports, including the charge recently introduced by Melbourne Airport. It confirms the ACCC's view that if an airport introduces new taxi charges the airport must reduce other charges to avoid breaching the price cap to the extent that the charges are not necessary to fund new investments.
"In April 2000 Canberra Airport introduced a fee of $2 on taxis moving from the taxi queuing area to the taxi rank adjacent to the terminal building. The ACCC decided that the charge was within the price cap on aeronautical services. Canberra Airport sought review of the ACCC's decision in the Federal Court.
"In March 2001 Justice Gyles ruled that the charge was within the price cap. Today's three-nil decision by Justices confirms that".