IATA slams airport costs

AUSTRALIAN airport pricing should be more closely regulated to constrain the market power of the country’s key gateways, according to International Air Transport Association (IATA) ceo Alexandre de Juniac.

Speaking at an event in Sydney yesterday in the lead-up to this weekend’s IATA annual general meeting and World Air Transport Summit, de Juniac noted that while it is significantly cheaper to travel by air today than a decade ago, “airlines and travellers have not seen similar decreases in airport costs.

“The difference is that airlines operate in a competitive environment, while airports have much more market power,” the IATA director-general said.

He also welcomed the ongoing progress on the Western Sydney Airport at Badgerys Creek, but noted that with the new facility not operational until 2026 “there is an urgent need to find ways to use Kingsford-Smith to its full capabilities”.

De Juniac said it would also be key to develop a vision of the respective roles of Badgerys Creek and Kingsford-Smith, including ensuring connectivity between the two airports.

He issued a warning about the potential for ticket price rises, with demand for air transport continuing to be above the long-term trend and Apr figures showing passenger growth of 6.2% year-on-year.

“Increases in airline cost inputs, most notably fuel prices, mean that we are unlikely to see increased stimulation from lower fares in 2018, compared to previous years,” he said.

The eve of the IATA agm will also include a key announcement from oneworld on Sun afternoon.