ACCC Airport Report

[Pedota]

The ACCC has released its Airport monitoring report 2008–09: price, financial performance and quality of service monitoring (see
Airport monitoring report 2008?09: price, financial performance and quality of service monitoring (http://www.accc.gov.au/content/index.phtml/itemId/917763))

Today’s Australian has jumped on the fact that Sydney has been deemed the worst airport for four consecutive years.


It's four in a row for Sydney as the nation's worst airport
Steve Creedy, Aviation writer
From: The Australian
March 12, 2010

THE consumer watchdog has slammed Sydney Airport's performance, as the nation's premier gateway was labelled Australia's worst major airport for the fourth consecutive year.

The latest Australian Competition & Consumer Commission annual report on airport performance again put Sydney behind first-ranked Brisbane, Adelaide, Perth and Melbourne on a range of measures.

"This year's report has found the performance of Sydney Airport to be of the greatest concern," ACCC chairman Graeme Samuel said. "The indications are that Sydney has increased profits by permitting service quality to fall below that which airlines reasonably expect."

Mr Samuel said it appeared investment in the international terminal had been slow and noted that while Sydney was the only airport to report a fall in passenger numbers, it managed to increase its revenue and profit margins. It also recorded the highest average price of $13.63 per passenger, compared to $7.96 at Melbourne.

"While airlines lowered their airfares to attract business in the current global economic slowdown, the airports appear to have enjoyed the security of guaranteed prices as well as benefiting from the airlines' efforts to encourage travel," he said.

The ACCC found average per passenger prices at Sydney increased by 5 per cent while Brisbane recorded the highest increase of 13.6 per cent for the second year in a row.

Adelaide levied the second-highest average per passenger charge of $11.70, followed by Brisbane ($8.56) and Perth ($8.25).

"Despite being the only airport to have a decline in passenger numbers, Sydney Airport maintained the largest, as well as the largest increase, in operating margin," it said.

The regulation of monitored airports is due to be reviewed by the Productivity Commission in 2012 and airports are already lobbying furiously to have it changed, arguing the methodology the ACCC uses is flawed.
Sydney Airport said yesterday the report was out of date.

It said its $500m international terminal upgrade had progressed since the survey was done in 2008-09, with an expanded departures area, a combined Customs hall, new security screening area and more food, beverage and retail outlets. It said construction at the airport had been under way since 2007 and "may have, understandably, impacted on the customer experience".
Sydney Airport moved to pre-empt the ACCC report earlier this week by releasing its own passenger survey showing 84 per cent of respondents rated the terminal seven out of 10 or above and one third were highly satisfied.

It has written to the Productivity Commission questioning the fairness of some of the ACCC's service quality measures, such as the length of time spent at airline check-in counters. The airport also criticises the use of airline surveys to prepare the report, claiming airlines have a commercial interest in talking down the performance of an airport.

[Wally Mk2]

Just as a side note I heard this morning on ABC radio that ML Airport Corp made 21% of it's profit from car parking, around $95 Mill in 2008, not too bad next thing ya know the rwy's will be closed (one at a time of course) to park more cars on them for more money!:} Now if the Corporation could figure a way out to rid the place of those pesty planes & only have cars they would be laughin'!:) At least ML has the cheapest cost per pax to the airlines but boy do they make up for it in other ways!:-)


Wmk2

[limelight]

This highlights the actual cost to the passenger who elects to park at ML. Every time the subject of a rail link to the airport comes up, who cries foul? the airport and taxi industry, totally biased commentators. About time the government had the balls and 'just did it' on a rail link. But watching the current mob, no chance in hell, they would rather build more roads (to feed the carpark!).

[Icarus53]

I seem to recall a report from about a year ago which stated that Sydney airport made $50M profit from security services. In fact it was a 300% mark-up! (Cost to Sydney Airport to provide security = approx $25M; Billed to customers = approx $75M).

Surely there has to be something that prevents corporations from gouging 200% profit from a service that is required by legislation?:ugh::yuk:

[tail wheel]

Surely there has to be something that prevents corporations from gouging 200% profit from a service that is required by legislation.

Yes, it is called competition. But unfortunately competition will never be tolerated in a Government santioned monopoly.

But the joke is really on the Australian public.

Rail travel = subsidised.
Bus travel in most States = subsidised
Roads = subsidised
Ferry services = subsidised
Airports and air services = taxed

Where do those subsidies come from? One would assume the taxes and airport charges contribute to the subsidise paid to other forms of transport.

The history of our airports is also interesting. Most airports were originally acquired relatively cheaply by the Government of the day. In fact, I understand Eagle Farm was originally a dairy farm, donated to the Government.

Then the airports were leased to the Government corporation, the Federal Airports Corporation (FAC), who were tasked with total recovery of the Government investment. Once Government recoved it's investment, the FAC was abolished.

Now they are leased to private enterprise as a monopoly. In time those leases will expire and the entire "recovery of Government cost circus" starts again.

Ned Kelly is alive and well and lives in Canberra.

Here endeth the lesson!

[lk978]

With plans to charge $35 per 15 minutes for parking at sydney airport for aircraft it is set to continue.

[oil additive]

I can't believe Perth got third place :confused:

Must score points for building carparks as opposed to developing the AIRPORT... you know that place where planes need to operate from :ugh:

:mad: Morons!!!

[Worrals in the wilds]

Thanks for the report, Pedota.

In fact, I understand Eagle Farm was originally a dairy farm, donated to the Government.
Out of interest, what's your source on that? I understood the land was originally a private airfield and several small farms that were resumed by the government, with further resumptions in WW2 and then in the late seventies (including Cribb Island) for the expansion. Not saying you're wrong, just that I'd never heard it before, either locally or on the web.
The Old Eagle Farm Airfield (http://www.hangar7.org.au/eaglefarmairfield.htm)

There are many worse airports in the world than Sydney. I know that's no standard to aim for, but spend some quality time at Ataturk (Istanbul) or New Delhi if you want to experience the retro charm :yuk: of government owned infrastructure. While these are second world countries, the state government owned Roma Street transit centre in the same city as Eagle Farm is almost as vile as Delhi, and probably worse than Ataturk.

[JMEN]

Privatisation!

Australia a huge land mass, concentrated population centers basically one major airport in each location. No competition means they charge whatever they like, and they do! Yep is sux, every airport, shame shame shame!

Of course the share holders would be very happy indeed. Who privatized the airports? :ugh:

Look around the world, many airports where trains work well, many where buses work, and then there is Asia where it doesn't matter as taxis are so cheap.

Its a worry when the taxi fare is more than the airfare :{

[Cactusjack]

tail wheel wins the award for 'Post Of The Week' ! Spot on in every aspect,and accurate.
His final comment:

Ned Kelly is alive and well and lives in Canberra.


Accurately sums up today's modern Government.

As for Airport Corporations,the charges,prices,tarriffs and every other money making scheme/scam/rort or act of folly they can invent to extract a buck gets worse by the week.
I seriously have no issue with a corporation/enterprise/business/government or any other money making venture making a profit in general.It is when it is done unscrupulously, unethically and immorally that is when I get the sh*#s.

For example, several years ago I along with other unfortunate stakeholders had the 'misfortune' of having to deal with an aiport corporation that is located somewhere between OOL and MCY, and is not Archerfield.This airport wanted every stakeholder to foot the bill for the roadwork improvements into the airport vacinity.A bill of over 100 mil. Please tell me why should an individual Airline be asked to foot up to 30 mil of this cost on its own when the majority of this 'roadwork' was for access into the airport business district (which the airport corporation basically owns,operates and reaps from) and not for the terminals where the actual airlines vested interests predominately lay ?? Also in relation to square meterage charges,it was cheaper to rent a highrise ofice in the center of Sydney (by the meter) than at this particular Aiport !

Finally,I believe that there needs to be greater accountability placed upon service providers. Justification of specific rates of charges should be publicly documented and debated when the service that the service provider is providng directly affects the Australian public user.

As for the ACCC,well that is a subject to be discussed in a different forum,but needless to say they are a 'toothless' and 'testicleless' ( is their such a word,it does suit them) waste of taxpayer funds.

DirectAnywhere,perhaps the term 'Infinite Regress' could also be applied to this issue ?

[tail wheel]

NIce to see the mods vent their spleens once in a while.. :}

Not really venting my spleen - just the facts of the issue. There is still a philosophy that flying is for the rich, thus fair game for the tax man.

Worrals, I remember around 25 years ago that the FAC wanted $100,000 per annum rent for a one acre hangar site on the eastern side of the airport. A very old guy I knew at the time, remembered the original Eagle Farm from the 1920s and earlier. He suggested that at least part of the property had been a dairy farm and land had been donated for a "flying club", which eventually became the Government airport. All very second hand information and may not be totally correct. But whatever Government paid for the land and improvements, it was certainly repaid by the FAC and repaid again by BAC.

So don't lie, cheat or steal! The Government hates competition! :=

[Howard Hughes]

ACCC - They can't do anything about petrol prices or supermarkets, so they certainly won't be able to do anything about airports!

Money talks!;)