The International Air Transport Association (IATA) has confirmed it is working with Airlines for Australia and New Zealand (A4ANZ) and the Board of Airline Representatives Australia to provide input for the Australian Government’s Productivity Review on Economic Regulation of Airport Services taking place in 2018.
As previously reported by the Blue Swan, IATA CEO Alexandre de Juniac called on authorities to constrain the market power of Australia’s main airports
“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.”
De Juniac also explained that while traveling by air has become cheaper in the past decade, airlines and travellers 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 AUD300 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.”
Find out more news from IATA at airlines.iata.org