The Australian Competition and Consumer Commission today released an issues paper seeking public comment on a pricing proposal by Airservices Australia.
Airservices is the monopoly provider of air traffic control services in Australia, including both en route air navigation and terminal navigation (TN). It also provides aviation rescue and fire-fighting (ARFF) services at airports in Australia. These services are declared under section 95X of the Competition and Consumer Act 2010, which means that Airservices must notify the ACCC when it wishes to increases prices. The ACCC may object or not object to the proposed increases.
Airservices is proposing a long-term pricing arrangement that will apply during the next five years and will cover all of its regulated services. These services are used and paid for by aircraft operators, including airlines.
The pricing proposal involves increases in charges for TN and ARFF services, while charges for en route services are to remain unchanged.
The proposed rates of price change vary by location and year. On average, Airservices is proposing to increase TN and ARFF prices annually by 0.6 per cent and 6.1 per cent respectively.
The ACCC is seeking submissions by 10 May 2011. The ACCC's issues paper has been developed to assist parties making submissions.
The issues paper and Airservices' pricing proposal is available on the ACCC's website Airservices Australia 2011.