The International Air Transport Association (IATA) has voiced its concerns over Australian airport charges, calling for a strengthening of economic regulations in the region.
IATA is currently working with Airlines for Australia and New Zealand and the Board of Airline Representatives Australia to provide input to the Productivity Review on Economic Regulation of Airport Services taking place this year.
“At a time when we have an infrastructure crisis globally, Australia has a good story to tell,” said Alexandre de Juniac, IATA’s Director General and CEO in a keynote address to the Australasian Aviation Press Club (AAPC).
“The plans for a new airport at Badgerys Creek are encouraging, as are efforts for cooperation between civil and military authorities to more efficiently use airspace. But we need to take a serious look at airport charges.
“Last year the Australian Competition and Consumer Commission raised concerns about the effectiveness of Australia’s price monitoring regulatory regime for airport charges.
“They were not convinced that it does enough to constrain the market power of Australia’s main airports. We agree with the ACCC’s view.”
We must find an effective regulatory solution to ensure that Australia is well served with competitive infrastructure
De Juniac also explained that while traveling by air has become cheaper in the past decade, airlines and travelers have not seen proportionate decreases in airport costs.
“The difference is that airlines operate in a competitive environment while airports have much more market power,” he said. “We must find an effective regulatory solution to ensure that Australia is well served with competitive infrastructure.”
During his speech to the AAPC, the Director General and CEO also welcomed A$300 million that Australia’s federal government has provided for further improving safety and security at airports, but he warned that associated costs “should not leak back to the airlines.”