Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
A.C.C.C. accepts revised terminal navigation charges



Download PDFDownload PDF

Media Release

A.C.C.C. ACCEPTS REVISED TERMINAL NAVIGATION CHARGES

The Australian Competition and Consumer Commission has accepted revised terminal navigation charges proposed by Airservices Australia for Adelaide, Canberra and Coolangatta Airports. The charges now approved are $8.18/tonne at Adelaide, $8.34/tonne at Canberra and $8.61/tonne at

Coolangatta.

"The ACCC had earlier accepted most of the price changes proposed by Airservices Australia as part of a move to location specific pricing," ACCC Chairman Professor Allan Pels said today. "In making its decision the ACCC recognised Airservices Australia’s arguments about the efficiency benefits of the move towards location specific pricing. The new charges will improve transparency and will send appropriate pricing signals for efficient use of

airport services and for new investment."

The ACCC, however, had reservations about the price increases proposed for Adelaide, Canberra and Coolangatta. The ACCC‘s decision was to cap the price at $6.75/tonne as a transitional measure, pending further review of a number of issues.

"The revised pricing proposals are lower than the $9.00/tonne originally proposed and address concerns about the traffic volume projections originally used by Airservices Australia," he said. "Airservices Australia has also undertaken to review costs and services on an airport by airport basis, conducting the reviews at high cost locations as a matter of priority. As part

of the review process Airservices will consult with airport users, airport operators and the Industry regulator, CASA.

"In accepting the revised prices the ACCC took into consideration the significant subsidies to terminal navigation services that will be provided at Adelaide, Canberra and Coolangatta airports. These are estimated to be over $2.4 million in 1998/99. In making its decision the ACCC also notes that

the major domestic and international airlines support the revised proposals."

Further information Ms Lin Enright, Director, Public Relations, (02) 6243 1108 or (0414) 613 520 Ms Margaret Arblaster, Senior Assistant Commissioner, (03) 9290 1862 MR 118/98 26 June 1998

PO Box I I 79 Dickson ACT .