The Australian Competition and Consumer Commission has submitted its annual monitoring report on the performance of Adelaide, Brisbane, Melbourne, Perth and Sydney airports for 2010-11 to the Assistant Treasurer, the Hon David Bradbury MP.
Airports in these cities are monopolies and have market power. In 2002 the Australian Government directed the ACCC to monitor the prices, costs, profits and quality of certain services provided by Australia's five major airports.
"These airports are monitored to provide information to the public and the government about the airports' performance. However, monitoring does not restrict them from increasing prices or degrading service standards to earn monopoly profits," ACCC chairman Rod Sims said.
The ACCC's annual airport monitoring report provides information on the airports':
- prices for services provided to airlines (aeronautical services such as runways and some check-in facilities) and to consumers (including car parking)
- financial performance, and
- quality of service based on ratings given by airlines, passengers and border agencies as well as quantitative measures of the size and availability of facilities.
"This year's report shows that for the main part, the airports' revenues from aeronautical services continue to increase by more than operating expenses. Returns from aeronautical services have shown to be relatively stable despite the global financial crisis and a number of natural disasters in recent years," Mr Sims said.
All of the monitored airports except Melbourne showed increased profits from aeronautical services in 2010-11 (as measured by aeronautical operating margin per passenger and return on aeronautical assets). The decrease at Melbourne airport was due to investment in aeronautical services.
The airports increased passenger numbers in 2010-11, with Sydney airport recording the highest number of passengers while Perth had the highest passenger growth.
Quality of service ratings for aeronautical services at Melbourne airport declined from previous years. However, the airport was still rated as satisfactory on average. Quality of service ratings by airlines at Perth and Sydney airports remain a concern.
Airlines' ratings of Sydney airport's quality of service improved to satisfactory in the most recent period. While this is a positive sign, it follows reports of unsatisfactory service standards over many years which, when considered alongside continually increasing prices and profits, raised cause for concern about the airport's performance. At Perth airport, airlines rated the quality of service as less than satisfactory for the second year in a row. Although, the airport is investing and increases in prices and profits have been relatively low.
Total car parking revenue increased for all of the monitored airports. For Adelaide and Sydney airports, these increases were wholly attributable to an increase in demand for car parking services as they did not increase prices. For Brisbane, Melbourne and Perth airports, these increases in revenue were attributable to increases in both demand and prices.
A guide to the ACCC's airport monitoring report and the full report will be available from the ACCC website.