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Airservices Australia’s draft notification to increase the prices airlines are charged for using their services, has been made public.
Released on Thursday July 23 by the Australia Competition and Consumer Commission (ACCC), the notification was originally submitted by Airservices Australia back in April, and sought to enhance the providers delivery of major capital investments and air traffic management through increasing the prices of annual fees for airlines to $1.50 per passenger.
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The air navigation provider says that this will also support the increased cost to provide terminal navigation and Aviation Rescue Fire Fighting (ARFF) services.
“The cost of providing our air traffic management services, Aviation Rescue Fire Fighting services and enabling services has increased considerably since our last long-term price agreement which ended in 2015-16,” said the company’s Chief Executive Officer, Rob Sharp.
“Aviation in Australia is undergoing significant transformation, with investment underway to support an 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 programs. We have a vital role to play in ensuring airports, airlines, and the travelling public realise the benefits of this investment.”
The ACCC is expected to seek stakeholder feedback on Airservices’ proposal of a five year increase to “reset Airservices’ asset base” and deliver their navigation and management services effectively whilst “meet[ing] rising demand and integrate[ing] new technologies”.
The draft notification says that the increased price to airlines will be weighted by a 12 percent average of “real terms annually over the five-year pricing period”.
“Aviation is a key enabler of Australia’s economic growth with Airservices playing a central role. We connect people with their world safely – linking family and friends, generating economic activity, creating jobs and facilitating trade and tourism,” Sharp added.
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