Regional fees

Sydney Airport has indicated its disappointment at the ACCC's decision on the pricing of regional aeronautical fees at Sydney Airport.

Sydney Airport had sought the first increase in regional fees since 2001.

The CEO of Sydney Airport, Russell Balding, said that the proposed increase of 2.9% was significantly less than the 28.9% increase in the CPI since 2001. 

"On a per passenger basis, the proposed typical increase was 22 - 23 cents (ex GST).

"Since 2001 a host of costs have increased, which is why an increase was sought.

"Sydney Airport felt it fair and reasonable to seek a modest increase given that regional fees had not increased since 2001.

"The failure of the regulatory system to deliver a fee increase after 10 years is disappointing and difficult to comprehend, particularly given that the increase sought was so far below the CPI," Mr Balding said.

Russell Balding said that despite the decision, he looked forward to continuing to work with the airlines to expand the route network available for passengers to and from Sydney Airport.

"Since the proposed increases were first announced in June, Brindabella Airlines has announced a new service to Cobar and Aeropelican has announced that it will be expanding its Snowy Mountains service to an all year schedule.

"Sydney Airport is a very attractive airport for regional passengers, offering a good location conveniently close to the heart of Sydney, a broad range of connections to other regional, domestic and international destinations, and charges which are considerably cheaper than those at most major regional airports.

"Adjusted for inflation, regional aeronautical fees at Sydney Airport have actually reduced by 20% since 2001," Mr Balding said.

Sydney Airport will be documenting this outcome in its submission to the Productivity Commission's forthcoming review of the economic regulation of Australia's airports.
(Source:www.transportweekly.com)