The Australian Competition and Consumer Commission today issued its final decisions on proposals by Brisbane and Perth airports to increase aeronautical charges to fund new investments.
"The decisions relate to new investment provisions in the CPI-X price caps which apply to privatised airports", ACCC Chairman, Professor Allan Fels, said. "These provisions were designed to provide incentives for the timely development of necessary new aeronautical infrastructure.
"The ACCC has approved increases to fund a $20.5 million investment program at Brisbane Airport. The new investments include apron expansions to service regional and international airlines, movement area guidance signage and taxiway lighting.
"The ACCC also approved increased charges at Perth and Canberra airports. At Perth Airport the charges cover investments into, amongst other things, international and general aviation aprons, a taxiway upgrade and fuel spillage containment works. At Canberra Airport the relevant investment is a runway lighting system.
"In 1997 and 1998 the Government privatised 11 airports, Adelaide, Alice Springs, Brisbane, Canberra, Coolangatta, Darwin, Hobart, Launceston, Melbourne, Perth and Townsville.
"At the same time the Government introduced a number of regulatory measures to protect airport users from potential abuse of market power by the privatised airport operators.
"The measures include CPI-X price caps which have delivered real price reductions at each of the airports. They also include provisions for increased charges to fund new investments.
"The new investment provisions encourage airport operators and user to consult on the investment needs of the airports and the prices associated with the new investments.
"The ACCC's decisions on Brisbane and Canberra Airports demonstrate that the industry can work together to deliver the commercially driven outcomes envisaged by the Government.
"In relation to Perth Airport, the consultation process has been less effective. Perth Airport applied to the ACCC for price increases for a number of projects in the absence of industry support. I encourage Perth Airport and users of the airport to consult further on the outstanding issues".
The reports will be available on the ACCC web site at accc.gov.au.
