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Wirraway
21st Jul 2004, 16:10
Thurs "The Australian"

Airlines baulk at airport's fee plan
By Steve Creedy, Aviation writer
July 22, 2004

HOPES of a quick resolution to the battle over Sydney Airport's aeronautical charges faded yesterday after airlines denied they had been provided with detailed financial modelling justifying proposed rises.

The Board of Airline Representatives of Australia put an agreement further in doubt by warning that a presentation outlining the parameters for the new charges suggested the increases were not warranted.

Sydney Airport chief executive Max Moore-Wilton said on Tuesday the airlines had been provided with the modelling for proposed longer term increases that included charges to cover $160 million in modifications needed to accommodate double-decker A380 super-jumbos in 2006.

Mr Moore-Wilton suggested work to upgrade the airport to handle A380s would begin once the carriers got their act together.

But BARA executive director Warren Bennett said yesterday there was still no sign of the detailed modelling, even though the airlines had been asking for it since October.

Virgin Blue and Qantas also said they had not received the document.

Mr Bennett said the airlines had only been given a presentation outlining the parameters of the new charges and this contained nothing that convinced them they were reasonable.

"All those increases in charges amount to is the SACL wish list," Mr Bennett said. "It's nothing rational. As far as we can see, there's nothing reasonable ... contained in those parameters that they've handed us."

BARA has threatened to seek intervention by the competition watchdog unless Sydney Airport produces the document soon.

It is seeking a longer term commercial agreement similar to those at other Australian airports.

Mr Bennett described suggestions that airlines did not have their act together as "the height of hypocrisy".

He said indications from the documentation sent by the airport was that it was seeking increases above those the airlines believed were warranted.

He warned BARA would not be forced into any sort of rush decision by the airport.

"They're the most difficult airport management team that we have to deal with, the most unreasonable we've had to deal with, and we're just not going to be bulldozed by them," he said.

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