Win for Virgin Blue on airport fees
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Win for Virgin Blue on airport fees
Tues "Melbourne Age" 1/7/03
Win for Virgin Blue on airport fees
July 1 2003
By Brian Robins
Sydney
Macquarie Airports affiliate Sydney Airports Corp has suffered a major setback, with the competition regulator set to reintroduce price controls at the airport following complaints by Virgin Blue.
The discount airline operator last year complained to the National Competition Council over planned fee changes at Sydney airport, which it claimed would put it at a competitive disadvantage.
Sydney Airport wanted to move its charges to a "per-passenger" fee from the present "per-tonne" basis.
In a draft ruling released yesterday after extended delays, the National Competition Council threw its weight behind Virgin Blue, issuing a draft determination in favour of the discount airline operator.
If the draft ruling is upheld, the way is automatically open for the Australian Competition and Consumer Commission (ACCC) to gain oversight of all pricing decisions at the airport, including the charges it levies.
Sydney Airport was due to introduce the new fee structure from today, and is finalising an overhaul that is expected to lead to job losses.
Virgin Blue yesterday called on the airport to defer the planned fee changes pending finalisation of the National Competition Council ruling.
Sydney Airport's chief executive, Max Moore-Wilton, said that, despite the decision, the competition council had not found evidence of the exercise of market power by the airport, nor had it done any analysis of the costs or benefits of the move.
Virgin Blue had argued that the fee change would cost $5 million in the first year.
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Win for Virgin Blue on airport fees
July 1 2003
By Brian Robins
Sydney
Macquarie Airports affiliate Sydney Airports Corp has suffered a major setback, with the competition regulator set to reintroduce price controls at the airport following complaints by Virgin Blue.
The discount airline operator last year complained to the National Competition Council over planned fee changes at Sydney airport, which it claimed would put it at a competitive disadvantage.
Sydney Airport wanted to move its charges to a "per-passenger" fee from the present "per-tonne" basis.
In a draft ruling released yesterday after extended delays, the National Competition Council threw its weight behind Virgin Blue, issuing a draft determination in favour of the discount airline operator.
If the draft ruling is upheld, the way is automatically open for the Australian Competition and Consumer Commission (ACCC) to gain oversight of all pricing decisions at the airport, including the charges it levies.
Sydney Airport was due to introduce the new fee structure from today, and is finalising an overhaul that is expected to lead to job losses.
Virgin Blue yesterday called on the airport to defer the planned fee changes pending finalisation of the National Competition Council ruling.
Sydney Airport's chief executive, Max Moore-Wilton, said that, despite the decision, the competition council had not found evidence of the exercise of market power by the airport, nor had it done any analysis of the costs or benefits of the move.
Virgin Blue had argued that the fee change would cost $5 million in the first year.
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