Airport report slammed

AIRLINE bodies have slammed the Productivity Commission’s Final Report of its Inquiry into the Economic Regulation of Airports and urged the government not to adopt its recommendations.

The report was sent to the government on 21 Jun and made public yesterday, and says that the monitored airports - Sydney, Melbourne, Brisbane and Perth - “have significant market power in aeronautical services, but they have not systematically exercised their market power to the detriment of the community.

“There is no justification for significant change to the current form of regulation of aeronautical services at any of these airports at this time,” it says.

The final report also stated that an airport-specific negotiatearbitrate would be detrimental & found that although prices are likely high for jet fuel, “there is no role for new access regulation”.

Airlines for Australia and NZ (A4ANZ) Chair Graeme Samuel said “We note the Final Report is largely unchanged from the draft, despite the raft of submissions & credible evidence the Productivity Commission received in favour of modest, sensible reform.

“There is a pragmatic, lighthanded solution on the table: independent commercial arbitration to resolve disputes.”

Meanwhile, the Board of Airline Representatives of Australia (BARA) said the report “continues to downplay the genuine and legitimate concerns international airlines have over the provision and pricing of airport services.

“International airlines ask the Australian Government to take the known problems in airport services seriously; and that commercial arbitration, rather than revamped monitoring, fits with delivering value for money in airport services and supporting efficient aircraft operations,” BARA said in a statement.

To download the final report, CLICK HERE.