Wirraway
7th Jan 2005, 16:17
Sat "Weekend Australian"
Airlines in flap as fees soar
By Steve Creedy
January 8, 2005
MACQUARIE Airports can expect airlines to harden their stance on disputed charges at Sydney Airport after handing a massive $187 million performance fee to its parent this week.
Airlines yesterday pointed to the fees paid to Macquarie Bank as another indication of the monopoly advantage enjoyed by an MAp investment - Sydney Airports Corporation Ltd - at the nation's busiest airport.
"It certainly demonstrates what a nice little earner airports can be for an infrastructure investor," Board of Airline Representatives of Australia executive director Warren Bennett said.
"It will mean we will be looking even more carefully at the pricing proposals that Sydney Airport is putting forward to us."
Negotiations between Sydney Airport and airlines on a long-term pricing plan remain in limbo after airlines last year rejected a draft document on the issue.
Mr Bennett said SACL was already seeking over and above what it was earning from the aeronautical assets at Sydney - a significant part of the MAp group, which also owns stakes in British and European airports.
"The proposal is for quite a large increase in revenues and this latest result from Macquarie Bank, and from Macquarie Airports group in particular, shows they're already doing very nicely in terms of financial returns," he said.
Virgin Blue chief commercial officer Stefan Pichler criticised Macquarie's windfall as a monopoly gain that showed an unregulated Sydney Airport was a "licence to print money".
He said the large fee added credibility to Virgin's argument that Sydney Airport should be reregulated and that allowing it to operate as a monopoly was not good for consumers, the airlines or Australia.
"The question for me is who has to pay the bill in the end, and it's the consumers - the people who want to fly - which simply proves that monopolies are never good for the consumers," he said.
Virgin Blue and Qantas have appealed to the Australian Competition Tribunal against a federal government decision not to move towards reregulating Sydney Airport fees.
Mr Pichler said yesterday the airline expected a decision by mid-year. He warned that a large increase in Sydney's fees could affect the growth of the aviation industry.
"This kind of monopoly situation is not good for the Australian economy because it prohibits growth in air travel and this has a negative influence on GDP growth," he said.
The Australian
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Airlines in flap as fees soar
By Steve Creedy
January 8, 2005
MACQUARIE Airports can expect airlines to harden their stance on disputed charges at Sydney Airport after handing a massive $187 million performance fee to its parent this week.
Airlines yesterday pointed to the fees paid to Macquarie Bank as another indication of the monopoly advantage enjoyed by an MAp investment - Sydney Airports Corporation Ltd - at the nation's busiest airport.
"It certainly demonstrates what a nice little earner airports can be for an infrastructure investor," Board of Airline Representatives of Australia executive director Warren Bennett said.
"It will mean we will be looking even more carefully at the pricing proposals that Sydney Airport is putting forward to us."
Negotiations between Sydney Airport and airlines on a long-term pricing plan remain in limbo after airlines last year rejected a draft document on the issue.
Mr Bennett said SACL was already seeking over and above what it was earning from the aeronautical assets at Sydney - a significant part of the MAp group, which also owns stakes in British and European airports.
"The proposal is for quite a large increase in revenues and this latest result from Macquarie Bank, and from Macquarie Airports group in particular, shows they're already doing very nicely in terms of financial returns," he said.
Virgin Blue chief commercial officer Stefan Pichler criticised Macquarie's windfall as a monopoly gain that showed an unregulated Sydney Airport was a "licence to print money".
He said the large fee added credibility to Virgin's argument that Sydney Airport should be reregulated and that allowing it to operate as a monopoly was not good for consumers, the airlines or Australia.
"The question for me is who has to pay the bill in the end, and it's the consumers - the people who want to fly - which simply proves that monopolies are never good for the consumers," he said.
Virgin Blue and Qantas have appealed to the Australian Competition Tribunal against a federal government decision not to move towards reregulating Sydney Airport fees.
Mr Pichler said yesterday the airline expected a decision by mid-year. He warned that a large increase in Sydney's fees could affect the growth of the aviation industry.
"This kind of monopoly situation is not good for the Australian economy because it prohibits growth in air travel and this has a negative influence on GDP growth," he said.
The Australian
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