Airservices Australia’s draft notice to increase the prices airlines charge to use their services has been made public.
Released on Thursday 23 July by the Australian Competition and Consumer Commission (ACCC), the notice was originally introduced by Airservices Australia in April and sought to improve supplier delivery of significant capital investment and air traffic management through annual increases equivalent to $1.50 per ticket for the average national fare, or $1 for regional fares.
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The air navigation provider says this will also support the rising cost of providing terminal navigation and aviation rescue firefighting (ARFF) services.
“The cost of providing our air traffic management services, aviation rescue firefighting services and enabling services has increased significantly since our last long-term pricing agreement which ended in 2015-16,” said company CEO Rob Sharp.
“Aviation in Australia is undergoing a significant transformation, with investments underway to support the expected doubling of domestic and international passenger numbers by 2050. Airports are investing around $40 billion in infrastructure over the next decade, while airlines are undertaking major fleet renewal programs.
“Airservices is supporting this growth by delivering critical aviation transformation programmes. We have a vital role to play in ensuring airports, airlines and the traveling public realize the benefits of this investment.”
The ACCC is expected to seek feedback from interested parties on Airservices’ proposal for a five-year increase to “re-establish Airservices’ asset base” and deliver its navigation and management services effectively while “meeting expectations”.[ing] increase demand and integrate[ing] new technologies”.
The draft notification says the price increase for airlines will be weighted by an average of 12 percent of “actual annual terms over the five-year pricing period.”
“Aviation is a key enabler of Australia’s economic growth and air services play a central role. We connect people to their world safely – linking family and friends, generating economic activity, creating jobs and facilitating trade and tourism,” Sharp added.
