Whilst there are difficulties arising from CASA’s current funding model, an abrupt
change in fees and charges could create uncertainty; therefore delaying investment
and resulting in a net loss to air transport consumers.
Rather than repricing all its services overnight, CASA should endeavour to manage
the transition from current funding arrangements to full cost recovery over a
number of years, in order to allow industry participants to make any necessary
adjustments. This transition process should be supported by a program of industry
consultation, so that participants are aware of the future program of changes that
will affect them.
The cost recovery target is increasing from 2006 to 2009, and individual charges
should be phased also. There would be administrative advantages in increasing the
range of CASA’s fees from 1 January 2006, and then phasing increases in fees
between 2006 and 2009.
So, this is just the beginning?