Unprecedented investment

Despite the report’s claims of increasing revenues and only small improvements in service quality, there was no disputing the fact that the monitored airports – Sydney, Melbourne, Brisbane and Perth – collectively invested nearly $900 million in improved infrastructure in 2013‑14 alone. With these record levels of investment in aeronautical infrastructure, in addition to the further $9 billion of investment planned over the next decade, it is clear that Australia’s major airports are committed to continually improving the facilities and services that they provide their customers.

Highlighting the contribution made to Australia’s economic growth, the record investment came as 106. 9 million passengers used the four airports in 2013-14, an increase of 2. 6 per cent on the previous year’s figures.

In contrast to the public messagingfrom the ACCC on airport parking revenues, the AAA believes it is important to highlight that three of the four airports actually reduced a range of car parking fees during 2013‑14, providing their customers with better value for money options.

This includes innovations such as the ability for passengers to take advantage of each airport’s online pre-booking facilities for parking, which can result is savings of up to 70 per cent when compared to the standard drive-up rates. All of the airports covered in the report have invested significantly in improving their car parking facilities to ensure the growing numbers of passengers are able to access airport facilities in a timely and cost-effective manner.

Despite the ACCC’s attempts to play down the significance of airports, the report in fact highlights the growing importance of airports to Australia’s tourism sector and the overall economy.

Each of the airports covered in the report are undertaking significant infrastructure investment, including new terminals, runways and aeronautical infrastructure. At each of the four airports, investment over the 2013-14 period alone ranged from $139-to-329 million.

All of this investment is focused on improving aviation facilities, improving the customer experience, creating jobs and driving the economy forward.

For example, Sydney Airport plans to invest a further $1. 2 billion over the next five years in airport

Australia’s major airports are committed to continually improving the facilities and services that they provide.

improvements. This investment includes improving efficiency and capacity in several areas including ground transport, baggage capacity and check-in counters.

Melbourne Airport is managing a record capital investment program that includes a new domestic terminal and ground transport hub scheduled to open later this year. The airport is also working hard to double the capacity of its main entry road and improving the pick-up and drop-off facilities for passengers, buses and taxis.

Brisbane Airport has a $3. 8 billion investment program being rolled out over the next decade that includes the construction of a new parallel runway, new terminal facilities, and improved road and transport facilities.

Perth Airport also has a significant investment program currently underway that includes the expansion and upgrade of its international arrivals and departures terminals, construction of a new domestic and international pier, a new runway, as well as significant upgrades to airport roads.

Australian airports take seriously their critical role as the frontline of the burgeoning international and domestic tourism market. These are world class facilities and with these high levels of investment they will only get better.

The AAA also disputes the assertion in the ACCC report that there is an observable trend between increasing financial margins and the claimed lagging of quality of service outcomes. It is important to understand that while aeronautical revenue for these airports has increased over the past 12 months, for a variety of reasons including increased international passenger numbers, there is no evidence to suggest that there is a reluctance from airports to improve their level of service. The multi-billiondollar levels of investment that are occurring at each of these four airports is evidence of an unwavering commitment to continually improve and develop the services that major airports provide their customers.

Perhaps what is most disappointing about the ACCC’s report is the underlying message that the major airports need to be more directly regulated. The report suggests that since price caps on airports were removed in 2002, earnings and margins of the airports have gone up while quality of service has lagged. This assertion is made even as the Commission acknowledges that the monitoring report can’t actually be used to determine if monopoly profits are being made nor can it truly assess the quality of service given external factors outside the control of airports not being taken into account. The existing light-handed approach to regulation is supported by both airlines and airports and has been proven to work in providing a more efficient and market-driven outcome, with no evidence to suggest a more intrusive approach would produce better outcomes.

The AAA cannot condone the sort of irresponsible messaging that the ACCC continually puts forward with the release of its annual airport monitoring report. Australia’s airports provide critical infrastructure that not only facilitates tourism, business and social connectivity but also contributes close to $18 billion annually to the national economy. With unprecedented investment in improved facilities and infrastructure, Australia’s airports are working harder than ever before to provide the public with the most seamless travel experience possible.