Airservices Pricing Changes

[Dickcheese]

Controlled airports might have a sudden drop-off in GA traffic now!!
Increase is an understatement.


http://www.airservicesaustralia.com/mediainfo/customerinfo/longtermprice.htm

see Invitation to Consult and Terminal Navigation for new pricings.

[Icarus2001]

From the AirServices website...

Airservices Australia is seeking to develop a longer term arrangement for pricing airways services. This arrangement will provide more certainty in the medium term for both Airservices Australia and its customers and endeavour to address the concerns expressed by customers and other stakeholders during the ACCC’s review of our proposal to temporarily increase prices last year.

It is important to note that information on this price review site has not been considered or endorsed by the ACCC. Following consultation, we will submit a price notification to the ACCC for their consideration.

The importance of this change in the way we price our services should not be under-estimated. The new arrangement will have a significant influence on our commercial and operational relationships by shaping both the delivery of services and future investment plans.

We have committed significant resources to the development of this longer term arrangement and are dedicated to an extensive consultation process that is as comprehensive and timely as possible.

An Industry Steering Committee and an Industry Working Group have been established to work closely with Airservices Australia:


Industry Steering Committee (ISC)

Lasantha Subasinghe – IATA
Jean Elverton – Qantas Airways
Alan Blair – Singapore Airlines
David Hanlon – Virgin Blue
Warren Bennett – BARA
Hisham El-Ansary - Airservices Australia

Industry Working Group
Barry Abrams – Qantas Airways
Stephen Lonergan – Virgin Blue
Warren Bennett – BARA
Paul Logan - Airservices Australia

Good to see a GA representative on the steering commitee! :rolleyes:

[farqueue]

And did you notice the one liner that GA fees will be reviewed after the ACCC has delt with it.

This has a BOHICA feeling all over it.

[imabell]

with the mooted prices of $25.00 a ton at maroochy, sunshine express and the small flying schools, myself included will suffer immensely. a bell 47 training will incur a charge of $40.00. this will make us totally uncompetetive.

the margins we operate on out of the airport at the moment allow us to get by, these charges will probably mean we will have to get out.

thanks airservices.

[Wheeler]

At least we know the ACCC keeps us safe from inefficient grasping monopolies.....

(Anyone know where there is about 1000m of dirt with no controlled airspace anywhere near??)

User pays - what a joke! Pays what? whatever the monopolistic efficiency machine decides are its costs.

Looks like some good building land coming up forsale around the country?

[Wheeler]

I love the curt little letter we got today.

No new maps until they are ready even if they are due and paid for - and if your old ones are worn out contact ASA and BUY another new old one in the normal way.

And presumably if you dont like it you can ....

Public service monopolies at their best - just so har to replicate the tone, a real art.

[Charlie Foxtrot India]

I attended a meeting today where the nice man from airservices came for some "consultation".

It doesn't look hopeful; even though it is glaringly obvious that there are better and simpler ways of dealing with this, such as spreading the charges throughout all users of Airservices, apparently the minister has already said that he will not accept "cross subsidisation". So it looks like a fait accompli. Price the towers out of the market so we can get rid of them, and get rid of all those pesky little aeroplanes, and those silly old international flying colleges who bring all those millions into the country and provide employment for so many.

Funny how it was OK for all air travellers in Australia to subsidise the Ansett debacle. Funny how it's OK to subsidise other forms of transport. Funny how it's OK for ratepayers to subsidise country airports they never use. Funny how we all have to pay towards training of new ATCs, even if we can never expect any increase in service from them and they may never come to our tower. Funny how we pay $21 for a missed approach at Perth when according to their figures it only costs $8.57. And how some "consultant" has predicted (probably at enormous cost) an increase in GAAP traffic when it is in a decline now and if this goes ahead will go to zero...Funny how we also have to fund their 9.75% return on investment when so many in the industry are facing negative returns.

Australia will lose it's chance of competing in the world market for flying training overnight. The only option will be to move it all offshore. It seems flying training organisations are not wanted here. This will raise costs to the point it could be cheaper to learn to fly in the UK!!!!

Meanwhile the Govt will have to consder another form of cross subsidisation..taxpayers funding dole money for the 500 pros and tradespeople here who will lose thier jobs if this lunacy is allowed to happen.

Folks, this is serious, get together with colleagues and find out what the shadow minister of transport can offer as a solution to this. There's an election soon, time to rattle some cages, it could be our last chance. We all know the current minister will not acknowledge or respond to views from anyone who actually knows what they are talking about or has anything to lose, so it's a wate of time writing to him.



:mad: :mad: :mad: :mad:

[Chief Nothingburger]

Another version of the same topic here (http://www.pprune.org/forums/showthread.php?s=&threadid=134462)

[QSK?]

Yeah, but look on the bright side.

Terminal nav charges go up, initially GA activity goes down, control tower no longer required because of reduced traffic levels, ASA closes tower because its uneconomic, GA resumes at uncontrolled airport with lower charges.

Short term pain with a long term gain or, perhaps, skewed logic?

[Icarus2001]

CFI You are thinking too narrowly. Sure at the major city GAAP airports but what about the city fringes. I think the rural airports may flourish from this. places like Wollongong, Redcliffe, Murrayfield, Point Cooke? etc

[poison_dwarf]

Terminal nav charges go up, initially GA activity goes down, control tower no longer required because of reduced traffic levels, ASA closes tower because its uneconomic, GA resumes at uncontrolled airport with lower charges.
You forgot the step after reduced traffic levels, and tower closures - airport owners closes aerodrome for housing developments :mad: :* :ugh:

Sure at the major city GAAP airports but what about the city fringes. I think the rural airports may flourish from this. places like Wollongong, Redcliffe, Murrayfield, Point Cooke? etc
Great - except that the 'Gong, Warnervale and the Oaks are a fair hike for most of the residents of Sydney. I'll need the private helipad and Jetranger in the backyard to get to the aerodrome to hop in my Citation

Gotta go - they're coming with my medication now...

[spam]

Wheeler it's too late the ACCC can't help us. Their closing date for submissions on this was 3rd June, and Airservices didn't send out their letters until 10th June. Funny that.


Word is Anderson promised DS he would do this and refuses to budge or he'll "lose face" so a promise to DS is more important than thousands of Australians employed in the industry. It seems even Airservices don't have a say. Time for JA and DS to take a long walk off a short plank.

[poison_dwarf]

from ACCC

The consultation
period was limited on this consultation, in order to meet the statutory 21
day period in which the ACCC is required to make a decision. In
consultation with Airservices, we expect to allow a substantially longer
consultation period in relation to the long-term pricing proposal. We sent
the (temporary) proposal to and received a response from the Regional
Aviation Association of Australia, which, while expressing some
reservations, did not object to the temporary price proposal. This response
is available on the ACCC's website at:

http://www.accc.gov.au/content/index.phtml/itemId/513779

[Pass-A-Frozo]

I like how they are aiming for 9.75% return on assets.
Take a look at Darwin:

Darwin Terminal Nav charges (http://www.airservicesaustralia.com/mediainfo/customerinfo/terminal/darwin_twr.pdf)

Year 1: 18.78%, return on assets.

So of course in order to achieve the 9.75% they're after they will lower the charges right..... WRONG!

Year 2: from $1.88 per tonne to $2.26 per ton, giving them a return of 19.88%

:yuk:

[spam]

Who are the Regional Aviation Association of Australia? Never heard of them though I'm sure they are very nice. And this is about city not regional airports. No-one at this GAAP was consulted as far as I know.
Nowhere else to go in WA within three hours drive of Jandakot that isn't already taken up by SAAA, RACWA, gliers or meatbombs.
That was all looked at when LSC first came in.

[triadic]

RAAA

Used to be the "Regional Airlines Assoc of Australia"

They recently changed "Airlines" to "Aviation" in order to extend their coverage to other AOC holders such as charter etc., which they now do.

A fair thing I guess as nobody else looks after that sector....