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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."

p.j.m
6th Mar 2017, 05:54
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.
Yeah, the government couldn't see this coming eh?

Its not like everyone else TOLD THEM it would, and Bob Carr got a job with Macquarie Bank not long after the deal was done, I wonder how many other pollies are getting highly paid jobs at these companies after flogging off our assets to them!

gerry111
6th Mar 2017, 08:44
In fairness to ex NSW Premier, Bob Carr, it was a federal Coalition government that flogged off Sydney Airport.

The unquestionable marvel of the owner is how it manages to run such a highly profitable business without paying any company tax.

Horatio Leafblower
6th Mar 2017, 22:15
In fairness to ex NSW Premier, Bob Carr, it was a federal Coalition government that flogged off Sydney Airport.

It should however be noted that Max Moore-Wilton, John Howard's Chief of Staff or head of Dept PM & Cabinet (can't remember which) at the time the privatisation went through, resigned to take up the CEO role of Sydney Airport Corporation.

Who else clearly remembers Jon Howard saying that this would be "good for competition"? :rolleyes:

Biggles_in_Oz
7th Mar 2017, 00:19
Like a lot of large businesses, Sydney Airport is not a monolithic entity.
A large chunk is actually a trust structure, so the recipients of distributions from the trust pay tax.

Horatio Leafblower
7th Mar 2017, 10:16
so the recipients of distributions from the trust pay tax.

...So the people who make a 46% profit pay tax.

When most businesses make 15-20%, as an operator the fact that shareholders in the monopoly service provider SACL pay tax on their 46% profit doesn't really help me sleep at night.

As a person living in Regional NSW, excluded from Sydney in peak demand periods, the fact that SACL shareholders pay tax is no comfort whatsoever.

gerry111
7th Mar 2017, 11:09
I wonder whether the shareholders of SACL are also comfortably ensconced in overseas trusts? In low or no income tax havens?

Biggles_in_Oz
8th Mar 2017, 01:09
Good luck trying to find out.
A portion from the back of the 2015 annual report.

Top 20 holders of stapled securities
Rank
Investor
Number of stapled securities
% of stapled securities
1. HSBC Custody Nominees (Australia) Limited 408,791,598 18.34
2. J P Morgan Nominees Australia Limited 408,474,870 18.32
3. BNP Paribas Noms Pty Limited 376,635,995 16.89
4. National Nominees Limited 117,658,815 5.28
5. National Nominees Limited 108,225,792 4.85
6. Citicorp Nominees Pty Limited 106,264,884 4.77
7. BNP Paribas Noms Pty Limited 43,436,857 1.95
8. Custodial Services Limited 24,890,461 1.12