The Australian Competition and Consumer Commission will allow charges for international services at Sydney Airport to be restructured, ACCC Chairman, Professor Allan Fels, announced today.
The ACCC rejected a restructure proposed for domestic passengers. The rejected domestic charge was for $8.00 per passenger return (excluding regional services).
The change in charging structure for international passengers is not expected to increase the revenue of Sydney Airport nor lead to increases in international ticket prices.
The restructuring will introduce a 'per passenger' charge to replace some of Sydney Airport's current charges that are based on aircraft weight.
The charge, to be levied on airlines, is $38.62 (GST incl) per passenger for a return international flight to or from Sydney. Consumers will be charged the GST exclusive price as international tickets do not attract GST. The charge covers use of the runways and some terminal facilities.*
The restructuring follows the 97 per cent increase in Sydney Airport's charges in May, lower than the 130 per cent increase proposed by Sydney Airport.
"The concern is that the proposal could reduce competition by disadvantaging low-cost new entrant airlines who carry more passengers per aircraft.
"The ACCC considers this likely effect requires further consideration.
"The ACCC was not able to fully assess these concerns within the 21 day period allowed by the Prices Surveillance Act. Under the Act the ACCC has only 21 days to consider the potential implications of a change on competition and ultimately on consumers.
"Sydney Airport has the option of lodging a future notification in relation to the charge, which would allow a more thorough analysis of these matters".