The Australian Competition and Consumer Commission today issued its draft determination on Perth Airport's Access Undertaking, rejecting it in its current form.
The draft determination outlines the ACCC's assessment of the undertaking against the relevant legislative criteria in Part IIIA of the Trade Practices Act, the draft decision and the reasons for the decision. It also provides a detailed assessment of each section of the undertaking.
The ACCC has identified three major limitations with the undertaking. Firstly, the undertaking is not sufficiently detailed for it to be enforceable. Secondly, the undertaking does not provide access seekers with adequate information as part of the negotiation process. Thirdly, the ACCC has reservations regarding the adequacy of the dispute resolution process outlined in the document. 'The release of this draft determination provides Perth Airport and interested parties with the opportunity to comment on the ACCC's views before a final decision is made,' ACCC Chairman, Professor Allan Fels, said today.
'Perth Airport can vary its undertaking and resubmit it to the ACCC for further assessment. If this happens, the ACCC will further consult interested parties'. 'If an undertaking is not accepted by the ACCC in its final decision, certain airport services will automatically be declared in July under section 192 of the Airports Act. Declaration gives current and potential airport users the right to negotiate terms of access with the airport operator, and if the negotiations prove unsuccessful, the ACCC may arbitrate.
'Perth Airport lodged the undertaking on April 7. The undertaking establishes terms and conditions for airport users to access a range of services at Perth Airport. It covers services provided by 'airside' facilities; passenger processing areas; and aircraft refuelling, equipment storage and light and emergency maintenance sites. As part of the assessment process, the ACCC sought submissions and on April 16 put out an issues paper to assist interest parties in formulating responses.
The ACCC received nine submissions from domestic and international airlines, relevant industry associations, and other airport users such as refuelling service providers and car rental companies. Copies of the draft determination and Perth Airport's Access Undertaking are available from Douglas Shirrefs on (03) 9290 1865 or on the ACCC's web site: http://www.accc.gov.au.