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New watch on airport parking fees.
The Hon Anthony Albanese MP
Minister for Infrastructure, Transport, Regional Development and Local Government
06 April 2008 AA027/2008
NEW WATCH ON AIRPORT PARKING FEES
The Rudd Labor Government will direct the consumer watchdog - the Australian Competition and Consumer Commission (ACCC) - to monitor car parking costs and revenue at the nation's five major airports.
Last year, the previous government allowed the ACCC monitoring program to lapse at the very time total car parking revenue reached an unprecedented $206 million - not a good time for government to take its eyes off the ball.
The Rudd Labor Government believes proper monitoring of car parking costs and revenue at major airports is in the best interest of nation's travelling public.
Accordingly we will restart the monitoring of both long and short term parking at Adelaide, Brisbane, Melbourne, Perth and Sydney airports.
I recognise there are genuine public concerns about airports using their monopoly position to exert significant market power and charge higher prices for the various periods of stay - particularly short term stays to drop off and pick up passengers.
We need to ensure that this monopoly position doesn't lead to the exploitation of the travelling public and their families.
By international standards the parking charges at some Australian airports are high.
Approximate Car Parking Rates ($Aus) - 2006/07
Adelaide Airport Brisbane Airport
Melbourne Airport Perth Airport
Sydney Airport JFK Airport
Short-term Stay 4.00 8.00 10.00 5.20 13.00 6.55 8.50
Domestic car park
42.00 at public car
park 24.00 at long term
25.00 (40.00 for undercover) 17.00
Note: Short-term rates and long-term rates used here refer to the first hour and the first day respectively. Comparison with overseas airports should be treated with caution.
Car parking charges are also a significant, and in some cases, growing element to the revenue of the nations airports, making up as much as 18 per cent of an airports total revenue.
In 2006/07, revenue from parking ranged from $9.8 million at Adelaide Airport to $69.6 million at Sydney Airport.
Parking Revenues of the Major Airports (2006/07)
Adelaide Brisbane Melbourne Perth Sydney
Parking Revenue ($ million) 9.8 39.8 68.7 18.2 69.6
Total Revenue ($ million) 123.5 332.6 373.8 239.9 851.1
Parking as a % of total revenue 8.0 12.0 18.3 7.6 8.2
What's more, revenue from car parking has been growing at a much quicker rate than the number of people actually moving through the terminals.
Since 2002, passenger numbers at the five airports have increased by about 41 per cent; while over the same period of time parking revenues grew by a much greater 77 per cent. The graph below shows the growth numbers for each of the five major airports.
The inclusion of car parking in the ACCC's monitoring regime will provide greater transparency and accountability for the pricing of these facilities.
Jeff Singleton ( Mr Albanese's Office ) 0410 476 890