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The ACCC has extended the consultation period on Airservices’ proposed price increases.
In an addendum to its issues paper on the proposal, which would see fees to airlines increase by around 15 per cent per year over the next five years, the consumer and competition watchdog extended the deadline from 25 September to 9 October.
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“In the issues paper the ACCC stated it expected to receive additional information from Airservices on these issues. The ACCC has now received this information and published it on its website,” the ACCC said.
“As part of the issues paper, the ACCC initially sought stakeholder views on Airservices’ proposal by 25 September 2026.
“At the time the ACCC stated it would revisit timeframes for the consultation period once it had received the additional cost allocation and price-impact information from Airservices.
“Having received this additional information, the ACCC has now extended the consultation period for its issues paper by 2 weeks.”
The ACCC had asked Airservices for clarification on two points, the first being “how Airservices calculated its avoidable and standalone costs, as well as the methodology by which the prices between those bounds was calculated”.
“In determining the price between the avoidable and standalone cost bounds, Airservices stated there is no precise formulae or qualitative description that can illustrate how one or another price was derived by reference to particular costs,” the ACCC said.
“Airservices stated its approach to setting prices without reference to a precise formulae or qualitative description is consistent with other regulated industries, such as regulated electricity distribution networks.”
The second point was around “the impact Airservices’ proposed price increases would have on the charges paid by an airline per flight (and how this equates to a per passenger basis)”, and how Airservices calculated this.
“The response sets out Airservices’ methodological approach that underpinned its estimation of the impact its proposed price increases would have on airline costs and passenger ticket prices,” the ACCC said.
“This includes its methodological assumptions and calculations (including approach to rounding) in determining the size of these impacts.
“As part of this response, Airservices stated it selected representative flights for the chosen routes based on an airline’s market share, an airline’s comparative flight frequency, and the aircraft type.
“Airservices also stated that the type of fare it selected for each example represented an average across the broader range of fare types available on that route.”
Airservices had reduced its prices in 2019, but recently raised them due to rising costs.
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