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The federal government says it has no plans to buy back Darwin Airport as complaints about high fees continue.
Darwin International Airport, operated by Airport Development Group (ADG), has faced criticism in recent months for “unreasonable” landing fee hikes. The airport shares its runway with RAAF Base Darwin, and ADG has held a 50-year lease on its operation since 1998.
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Speaking to ABC Radio in Darwin, Solomon MP and Special Envoy for Northern Australia, Luke Gosling, said the government “wants [ADG] to show some corporate responsibility in what they do”, but is not currently looking at buying back the airport.
“Obviously it’s Commonwealth land, because we’ve got an incredibly important strategic Air Force base on the land, and that’s becoming ever more important,” he said.
“We just will continue to press them by using things, obviously, like the ACCC, but also … they’ll have to explain themselves to the Productivity Commission.
“There is some good news in that we’ve got more flights at better times during the day happening now, but unfortunately, because of our seasonality, the airlines still take advantage.”
Gosling told the ABC he “continues to ask that the airport do the right thing”, acknowledging that ADG has “made some concessions for some clients”.
“I wish they had come to a more reasonable position with the owners of the airlines that keep the Territory connected. But they were basically saying that ‘we’ve got a bill for the runway repairs’.
“Now, I fought hard to make sure that Defence paid the lion’s share of those runway repairs, even though the international airport uses the runway about 90-plus per cent of the time.
“But, we’ve also helped the airport in paying for their part of it. So, we’re giving them a lot of help, but they’re not giving the travelling public a lot of help.”
ADG earlier this year increased the General Landing Charge (GLC) at Darwin from $36.39 per tonne to $77.71 per tonne as of 1 July. Gosling labelled the price rise, which more than doubles the GLC, an “unreasonable cash grab”.
In a July statement, 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 has been contacted for comment.
