The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* the Board of Airline Representatives of Australia to collectively negotiate the terms and conditions of acquisition of airport services, including prices, with airport operators and other service providers at international airports on behalf of its members.
"The ACCC has assessed BARA's proposal and considers that any anti-competitive detriment that may flow from it is likely to be minimal", ACCC Chairman, Mr Graeme Samuel, said today. "In particular, the proposed arrangements would only affect airports with international scheduled services from BARA's members. Even when this occurs, airports are not required to negotiate through BARA. BARA's members are not bound by the terms and conditions negotiated by BARA.
"The ACCC sees benefits in allowing BARA to negotiate collectively with airport operators and other providers of airport services, such as Airservices Australia. The ACCC considers that the proposed collective bargaining arrangements are likely to generate benefits of substance in the form of transaction cost savings. The ACCC also recognises that the arrangements would provide efficiencies in the terms and conditions of supply of airport services, by improving the ability of BARA's members with a small presence in Australia to have an input into these terms.
"The ACCC considers that the proposed arrangements are likely to improve the airlines' ability to obtain and assess airport information and may result in more efficient and relevant infrastructure investment".
The ACCC will consult on its draft decision before making a final decision. Parties wishing to make a submission to the ACCC on this issue should contact the ACCC for further details.