The Australian Competition and Consumer Commission today issued the 1999-2000 Regulatory Reports for Airports.
The 1999-2000 regulatory reports for the Phase I and Phase II airports include an assessment of price cap compliance on aeronautical services, prices monitoring and accounts reporting as well as quality of service monitoring (applicable only to Phase I airports). The 1999-2000 regulatory report for Sydney Airport presents results on prices monitoring, accounts reporting and quality of service.
On March 23 2001, the Federal Court ruled that taxi charges at Canberra Airport are considered to be covered by the price cap on aeronautical charges. The ACCC welcomed the decision and has included taxi charges within the capped revenue for those airports where taxi charges have been introduced, namely, Canberra, Brisbane and Perth airports.
With the inclusion of taxi revenue within the capped revenue, Brisbane Airport and Perth Airport have over recovered revenue in 1999-2000. Perth Airport has over-recovered revenue for the past three financial years and it is imperative that it reduces its charges significantly in the current financial year in order to comply with the price cap. Although Melbourne Airport marginally over-recovered revenue in 1999-2000, the cumulative effect over the past three years is a net under recovery.
All Phase II Airports under-recovered revenues below that required by the price cap in 1999-2000. However the cumulative effect over the past two years has meant over-recoveries for Adelaide and Hobart Airports.
The regulatory account sections of the reports indicate that all the privatised airports (with the exception of Townsville), and the Government-owned Sydney Airport, made losses in 1999-2000 after interest and tax is taken into account.
Quality of service for the three Phase I and Sydney Airports was generally satisfactory. Brisbane Airport achieved high quality service ratings from passengers and airlines for the second year in succession. Although passengers at Melbourne and Sydney Airports were very satisfied with the quality of service at these airports, airlines were less satisfied overall than the previous year with service quality. However, it should be noted that both airports undertook significant construction works during the 1999-2000 period, which would have impacted upon operations. Although Perth Airport users and passengers were satisfied, there were marginal declines in the ratings for some facilities in 1999-2000. Airservices Australia was again unable to provide data on aircraft delays. The reports for Sydney Airport and for the privatised Phase II airports of Adelaide, Alice Springs, Canberra, Coolangatta, Darwin, Hobart, Launceston and Townsville, are the second annual regulatory reports. It is the third year that regulatory reports have been prepared for each of the privatised Phase I airports, which include Melbourne, Brisbane, and Perth.
Further details are provided in the reports.