Darwin Airport slammed over ‘unreasonable’ fee hike

The price rise, which more than doubles the GLC, has been labelled an “unreasonable cash grab” by Solomon MP Luke Gosling, while the RAAA has also expressed concern about its potential effects on operators and airfares.

“The scale of this increase threatens the viability of a broad range of essential aviation services operating in and out of Darwin,” chief executive of the RAAA, Rob Walker, told Australian Aviation.

According to Walker, general aviation operators at the airport “collectively proposed an alternative pricing model that represents a more manageable GLC increase phased in over a 5-year period”, which was rejected by ADG.

“We strongly urged DIA to reconsider the GA operators’ proposal and work with local operators to develop a fair and phased fee structure that reflects both the realities of GA operations and costs and the unique role they play in servicing the Northern Territory.”

“As small to medium-sized aviation businesses, they have no capacity to absorb these cost increases and have been forced to pass them on in full to our customers.

“The proportional impact on fares and charter pricing will be significant, likely resulting in reduced demand, fewer movements, and in some extreme cases, withdrawal of services.”

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Walker added that GA serves a “disadvantaged range of users” such as remote communities, government departments, local residents, and health services.

“The RAAA is disappointed that DIA have made the decision not to negotiate a fair and reasonable outcome for the GA operators at Darwin Airport,” he said.

“The RAAA firmly believe the shared objective should be the long-term sustainability of general aviation in the top end, not short-term gains that risk long-term damage to connectivity and community access.”

In a statement last week, ADG said it was “working closely with General Aviation users” on the adjustments to the GCL, which it described as an “industry-standard fee applied at airports across Australia” and regularly reviewed.

“The current adjustment is necessary, driven by the Department of Defence’s Main Runway Reconstruction Project, which has significantly impacted DIA’s operating costs. This is compounded by a decline in aeronautical activity and broader increases in construction costs driven by inflation,” the operator said.

“The GLC follows pricing principles aligned with the ACCC and Productivity Commission Pricing principles. It is important to note that non-aeronautical costs, such as those associated with car parking, food, and beverage services, are not recovered through aviation charges, including the GLC.

“ADG acknowledges the impact this adjustment may have on the GA community and is actively engaging with both the Northern Territory and Australian governments to explore mechanisms to support the sector.”

ADG last year was blamed by airlines, including Virgin Australia, for high airfares to and from the Northern Territory capital.