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ACCC draft guide to declaration of airport services



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Media release 13 October 1998

ACCC draft guide to declaration of airport services

The Australian Competition and Consumer Commission today issued its draft guide to declaration of airport services under section 192 of the Airports Act.

In July 1997 the Government granted long term leases at Melbourne, Brisbane and Perth [Phase 1 ] airports. In May this year it granted leases on a number of other airports, including Adelaide, Alice Springs, Canberra, Coolangatta, Darwin, Hobart, Launceston and Townsville.

The Government introduced a package of regulatory measures to apply to privatised airports and gave the ACCC primary responsibility for implementing and administering them. Access arrangements, under the Airports Act and Part IIIA of the Trade Practices Act 1974, are a core part of the package.

Certain airport services are declared for purposes of Part IIIA under section 192 of the Airports Act 12 months after the leases begins unless an undertaking has been accepted by the ACCC. These provisions already apply to the Phase I airports. The Airports Act does

list the services subject to declaration, instead it sets out declaration criteria.

In publishing the draft access undertakings guide the ACCC aims to assist airport operators, airport users and other interested parties interpret section 192 of the Airports Act 1996.

"The draft guide contains information on which airport services the ACCC considers likely to be declared under the Airports Act, for the purposes of Part IIIA of the Trade Practices Act," ACCC Chairman, Professor Allan Pels, said today. "The draft guide also explains the relationship between declaration of an airport service and airport access undertakings. An airport service the subject of an access undertaking cannot be declared. As such, this draft guide may assist Phase II airport operators in deciding whether to lodge an access undertaking.

"The draft guide groups airport services into a number of categories and assesses each of the service categories against the criteria in s. 192(5), using the framework established for interpreting the criteria."

Copies of the draft guide, 'Declaration of airport services - Section 192 of the Airports Act' are available from Gavin Gillies on (03) 9290 1829. The paper will also be available on the ACCC's web site.

Application of the ‘airport service’ test in section 192(5) of the Airports Act

Service Criterion (i) - Is

the service necessary?

Criterion (ii) - Is the facility significant and uneconomic to duplicate?

Is the service likely to be within the definition in section 192(5)?

Airside facilities (runways, taxiways, aprons, etc.) Yes Yes Yes

International passenger processing areas (check-in desks, gate lounges,

Yes Yes Yes

http://www.accc.gov.au/media/mrl87-98.html 16/10/1998

ACCC draft guide to declaration of airport se... Page 2 of 2

customs, etc.) Domestic passenger processing areas (check-in desks, gate lounges, customs, etc.)

Yes Assessment case

by case

Assessment case by case

Administrative office space Yes No No

Commercial and retail facilities No No No

Flight catering facilities Assessment case by case No No

Refuelling facilities Yes Assessment case

by case

Assessment case by case

Land for providing refuelling services

Yes Yes Yes

Land for providing ground service and freight handling equipment storage facilities

Yes Yes Yes

Ground service and freight handling equipment storage facilities

Yes Assessment case

by case

Assessment case by case

Sites for cargo terminal facilities Yes No No

Sites for light/emergency maintenance facilities Yes Yes Yes

Sites for heavy maintenance facilities Yes No No

Landside vehicle facilities Yes Yes Yes

Waste disposal facilities Yes No No

For further information about this media release: Professor Allan Pels, Chairman, (02) 6243 1129 Ms Lin Enright, Director, Public Relations (02) 6243 1108 (w)

MR 187/98

http://www.accc.gov.au/media/mrl87-98.html 16/10/1998