flywatcher
6th Mar 2017, 05:19
ACCC suggests airport regulation, says flyers pay up to $1.6b in extra fees due to privatisations
Airlines and their passengers have paid up to $1.6 billion too much for airport access over the past decade due to a textbook example of how not to privatise monopoly assets, the competition regulator said.
The Australian Competition and Consumer Commission's (ACCC) latest report into Australia's four biggest airports - Sydney, Melbourne, Brisbane and Perth - found that profit margins eased slightly for three of the operators last financial year.
However, Brisbane Airport's profit margin increased to 44.9 per cent, and Sydney Airport's 46.7 per cent profit margin would be amongst the highest in corporate Australia.
The airports have dramatically increased revenue per passenger over the past decade, with Brisbane charges up by two-thirds, Perth 43 per cent, Melbourne almost a third and Sydney up 16 per cent.
However, Sydney's charges remain the highest with $17.27 in revenue per passenger.
"The airlines are concerned that they keep getting higher charges from the airports and, of course, they've got to pass that on to consumers," ACCC chairman Rod Sims told RN Breakfast.
Beyond charges for airlines' use of the tarmac and terminal, Australia's airports are making a killing out of parking.
Mr Sims described the airports' car parking profit margins as "quite amazing", and said they get away with such high charges because they also slug taxis, hire cars and shuttle buses with large, and rising, fees to access the airport for drop-offs and pick-ups.
"Their access charges have gone up quite a lot, so the airports don't face much competition," he said.
"It's a great position to be in where you can have this near monopoly car parking and also make it more difficult for your competitors."
Airlines and their passengers have paid up to $1.6 billion too much for airport access over the past decade due to a textbook example of how not to privatise monopoly assets, the competition regulator said.
The Australian Competition and Consumer Commission's (ACCC) latest report into Australia's four biggest airports - Sydney, Melbourne, Brisbane and Perth - found that profit margins eased slightly for three of the operators last financial year.
However, Brisbane Airport's profit margin increased to 44.9 per cent, and Sydney Airport's 46.7 per cent profit margin would be amongst the highest in corporate Australia.
The airports have dramatically increased revenue per passenger over the past decade, with Brisbane charges up by two-thirds, Perth 43 per cent, Melbourne almost a third and Sydney up 16 per cent.
However, Sydney's charges remain the highest with $17.27 in revenue per passenger.
"The airlines are concerned that they keep getting higher charges from the airports and, of course, they've got to pass that on to consumers," ACCC chairman Rod Sims told RN Breakfast.
Beyond charges for airlines' use of the tarmac and terminal, Australia's airports are making a killing out of parking.
Mr Sims described the airports' car parking profit margins as "quite amazing", and said they get away with such high charges because they also slug taxis, hire cars and shuttle buses with large, and rising, fees to access the airport for drop-offs and pick-ups.
"Their access charges have gone up quite a lot, so the airports don't face much competition," he said.
"It's a great position to be in where you can have this near monopoly car parking and also make it more difficult for your competitors."