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Is Anyone Surprised?

Amazed it has taken this long to be officially identified. Credit to the airlines for pursuing it this far, however past form would indicate this is not an altruistic action. Corporate history in this country would strongly suggest that any revenue re-adjustment may take place isn't going to be returned to the traveling public's pockets.

Airport Price Gouging

Quote:

Airports need regulation to stop price gouging, former competition watchdog finds

By The Business presenter Elysse Morgan

Updated 45 minutes ago

Australians are being gouged by under-regulated monopolistic airports abusing their market power, according to former competition watchdog boss Graeme Samuel.

Airlines are demanding the Government regulate airports to bring down costs, and commissioned the former Australian Competition and Consumer Commission chairman to investigate the sector."[That is] whether it's the exorbitant landing and service fees paid by airlines on the passenger's behalf, their car parking fees, taxi surcharge or the bottle of water they buy in the terminal," Professor Samuel said.Consumers have no choice, and neither do airlines, following the Government's privatisation of the nation's biggest airports. "The notion that airlines, and indeed any airport user, can enter into genuine commercial negotiations with a monopoly airport operator in Australia's cities and regions is clearly nonsense," Professor Samuel concluded.An alliance of Qantas, Virgin Australia, Air New Zealand and Rex commissioned Professor Samuel and Frontier Economics to report on the impact airport privatisation has had on pricing as part of a push for more regulation.The report found airports are now collecting at least 25 per cent more revenue for every passenger than they were 10 years ago, in real terms.

Growing evidence airports gouging airlines, passengers

It appears to add to the weight of evidence that something may need to change.

An ACCC report released last month found Australia's largest airports have seen their operating profits surge.At Sydney Airport, profit from aeronautical activities jumped 7.1 per cent last financial year, nearly double that of the next best performing airport.The ACCC also found aeronautical profits at Sydney, Brisbane, Melbourne and Perth airports rose, on average, at more than double the pace of the increase in passengers.The airlines' report blames the gouging on the Productivity Commission's "current light-handed monitoring regime" and slams the commission's "belief that just because airports have market power does not mean they will use or abuse it".The ACCC's report came to similar conclusions to its former chairman's — that the current regime "did not provide an effective constraint on the airports' market power".The campaign by the airlines comes ahead of an inquiry into the regulation of airports by the Productivity Commission.

Professor Samuel will be on The Business tonight at 9:45pm (AEST) on ABC News Channel.

Privatisation without robust regulation simply transfers monopoly public sector rents to the private sector.

Given these assets are sweated incessantly, thereby maximising their monopoly pricing power, is it any surprise the Max Moore-Wilton went from John Howard's staff to SACL after the 'sale'

Qantas claim the QSA is a limitation to their funding aircraft purchases, with 49% of any profit (and indeed tax advantage heading offshore through nominee companies), they are simply another 'marginally' Australian company occupying a privileged place in the Australian domestic aviation landscape... the lady doth protest too much, we(sic) thinks!

Shows how little the airlines actually make after airport fees are removed (tiger being the cheapest airline in the world, closely followed by Jetstar and even Virgin and Qantas)

Quote:

Originally Posted by TimmyTee (Post 10155909)

........(tiger being the cheapest airline in the world, closely followed by Jetstar and even Virgin and Qantas)

I wondered when that little bit of fake news would surface.
Comparing cost / km fares between no-service airlines and full-service airlines is not quite kosher, what?

Mr Samuels finds this out now, after keeping his head in the sand when he was the competition watchdog. This explains why Qantas has now leaked the issue at CBR that happened a year ago. Didn't make a fuss then, just waited until they needed some dirt.

Quote:

Originally Posted by flightfocus (Post 10155325)

This is all rather a beatup. Sure there is tension between the airports and their various customers (airlines being just one category of customer) regarding sharing costs and other pies. There's lot of posturing on both sides. Just buy airport shares and/or bonds and let your capital become a part of developing Australia's infrastructure.

Quote:

Originally Posted by parishiltons (Post 10156369)

What actual infrastructure are these listed airports developing? Apart from bigger parking stations and new food courts?

Quote:

What actual infrastructure are these listed airports developing? Apart from bigger parking stations and new food courts?

Precisely nothing. Nor did the ever vigilant governments care to include any such requirement in the fire sale of public infrastructure.

With Transurban currently posturing to control Australia's roads, A case in point is the Cross city tunnel (in Sydney) A cost benefit model showed conclusively if the NSW government had issued the bonds, built it, tolled it and paid it off the taxpayer was over $1.5 billion better off. However private consortium handsomely reward duplicitous politicians and civil servants, just ask Max Moore- Wilton. it is important to remember that Governments only understand whom they serve when lining up to hang from lamp posts..

When the privatised UK Air Traffic control, cleverly called a "private-public partnership suffered a decline in revenue post 911 Attacks, guess who was on the hook for additional money to make whole the 51% private owner's loss? The UK taxpayer!

Exactly the same template when Sydney Airport suffered a down turn the almighty ACCC allowed SACL to increase charges belong the previously agreed limits as their revenue had deteriorated.

This is the spin from Australian Airports Association
Industry Newshttps://gallery.mailchimp.com/fc6c4a...0bfba3ead7.jpg Tourism Central Australia and Alice Springs Town Council have released a detailed report exploring issues impacting the high cost of airfares in regional Australia.
The report, undertaken by researchers from Charles Darwin University, was prepared specifically to provide additional evidence to the Senate inquiry in to air route service delivery to rural, regional and remote communities. The report focuses on Central Australia, however also explores issues that extend across regional Australia.
Noteworthy items include:
• Airport charges have only a minimal impact on airfare prices, despite the rhetoric from major air carriers
• Alice Springs has some of the highest airfares in Australia, despite offering high passenger throughput and demand
• Regional Australia has disproportionately high airfares compared with capital cities, despite requiring good access to increase economic impact and decrease social disadvantage
• Businesses and residents in regional Australia find it difficult to remain in regional areas due to lack of access
• Major carriers have the ability to reduce their airfares to regional Australia and still only have minimal impact on their profitability due to the low proportion regional airfares contribute to their bottom line
To read more and download the full report click here.