Airservices gets go ahead for price hike

Airservices Australia has received the go ahead to increase prices for its air traffic control services.
The Australian Competition and Consumer Commission said it did not object to a proposal by Airservices Australia to increase prices for some of its monopoly services, such as air traffic control, from 1 July 2012.
The services are used and paid for by airlines and other aircraft operators landing at Australian airports and flying in Australian airspace.
The proposed price increases will put into effect the second year of Airservices’ five-year pricing agreement. In summary:

  • Terminal navigation charges will increase at 24 airports by between 0.2 per cent and 3.5 per cent, and will decrease at six airports by between 1.0 and 5.1 per cent.
  • Charges for aviation rescue and fire-fighting services will increase at 21 airports by between 2.4 per cent and 10.4 per cent, depending on location and aircraft category.
  • Charges for en route services will decrease by between 0.7 per cent and 1.1 per cent.
    The ACCC’s view is that Airservices has made sufficient progress on its commitments to improve consultation with industry on capital expenditure and to develop internal drivers of efficiency. These commitments were a critical component of the ACCC’s consideration and acceptance of Airservices’ five-year pricing agreement in 2011 as they help to ensure that Airservices invests prudently and efficiently manages its costs.

Airservices intends to implement its proposed prices on 1 July 2012.