ACCC will not stand in the way of Airservices price rise

The increase would cover its en-route and terminal navigation services as well as aviation rescue firefighting (ARFF).

“The ACCC considers that Airservices’ proposed price increase is unlikely to lead to it over recovering its costs. It should assist Airservices Australia to stabilise its balance sheet and continue to focus on service quality improvements, which has been a key issue for industry,” the consumer watchdog said in a statement announcing its decision.

“While making its decision, the ACCC has also provided Airservices Australia with recommendations to support future price notification processes.

“The ACCC recommends that Airservices Australia engage in more robust stakeholder engagement and set more robust and transparent performance metrics. This will provide stakeholders greater certainty and clarity about how Airservices has developed prices, the timing and delivery of projects, as well as the breakdown of its costs.”

The ACCC also noted that Airservices plans to open consultation on a new long-term pricing proposal next year, with the aim of implementing it in the 2026–27 financial year.

“The timing of the long-term pricing proposal aligns with the commissioning of several major infrastructure projects, including the OneSKY air traffic management system,” the ACCC said.

VIEW ALL

>

“The ACCC’s assessment of this anticipated price notification will require careful examination of the prudency and efficiency of the OneSKY investments.”

Airservices is now expected to notify the minister of the proposed increase by 1 November. If ministerial approval is granted, it intends to implement the price increase on 1 December.

A spokesperson last year told Australian Aviation that, on a weighted average basis, its prices as of November 2023 were at 2012 levels following a 2 per cent reduction in 2019, and that it had last increased its prices by 0.4 per cent in 2015.

The air traffic control provider has said it welcomes the ACCC’s decision.

“Following the ACCC’s decision, the price notification is now before the Minister’s office for consideration,” a spokesperson said.

“If approved, the increase will enable Airservices to continue to invest in front line service delivery and key initiatives that enable the aviation industry’s recovery and future growth.

“The cost of providing air traffic management services, aviation rescue fire fighting services and enabling services has increased considerably since the last price rise in 2015.

“We thank the ACCC for their careful consideration of the draft price notification and industry stakeholders for their participation in what the regulator has described as an extensive public consultation process.”