An Issues Paper on Perth Airport's Access Undertaking was released by the Australian Competition and Consumer Commission today.
On 7 April 1998, Perth Airport lodged an access undertaking with the ACCC under the new access provisions in the Trade Practices Act 1974. This is the second undertaking formally lodged by an airport operator. Last month the ACCC received an access undertaking from Melbourne Airport. "The lodgment of the second airport access undertaking is a positive indication the aviation industry is moving towards a more competitive environment," ACCC Chairman, Professor Allan Fels, said today.
"The ACCC welcomes the undertaking and encourages other airport operators to develop and lodge undertakings. "The new access arrangements that apply to privatised airports are an important part of the Government's competition reform program. They are already having a significant impact on airport operations. They have promoted new entry into freight handling services which will deliver improved service quality and lower prices.
"The access arrangements are important in establishing fair and reasonable terms for airlines and other airport users to obtain access to airport services. They should assist new domestic airlines enter the Australian market, creating competitive pressures. This could result in lower airfares, with benefits to business, consumers and the tourist industry."
The undertaking establishes the terms and conditions for airport users to access a range of services at Perth Airport. The undertaking covers services provided by 'airside' facilities (runways, taxiways, aprons, etc.); passenger processing areas; and aircraft refuelling, equipment storage, cargo, and maintenance sites. The ACCC is currently seeking views on these undertakings from industry as part of its public consultation process.
Decisions on the undertakings are due at the end of June. In its Issues Paper, the ACCC discusses a number of issues concerning the enforceability of the undertaking, the provision of information and the obligations of the airport operator and the access seeker. If the ACCC does not accept the undertaking some airport services will be automatically 'declared' as of July 1998.
The ACCC is promoting industry discussion on the undertaking and encourages submissions from interested parties. Due to the tight legislative timetable, the ACCC seeks submissions by 8 May 1998.