The Productivity Commission (PC) has expressed the opinion that Australian airports should provide more information to competition regulators following its finding that the nation’s travel industry was ‘soaring’.
Opening its draft inquiry report Economic Regulation of Airports for public comment, the PC said that while the airports were operating efficiently by world standards, “Sydney, Melbourne, Brisbane and Perth airports should be required to provide more information to the Australian Competition and Consumer Commission on their operational and financial performance.”
Commissioner with the PC, Paul Lindwall said the current form of economic regulation remained fit for purpose, but more scrutiny of Australia’s four busiest airports was justified to ensure prices paid by airlines and passengers did not lead to monopoly profits.
“The Commission has concerns about some aspects of the performance of the four monitored airports and would not hesitate to recommend more heavy-handed regulation if they use their market power to charge excessive prices in the future,” Mr Lindwall said.
“Reforms to enable greater scrutiny of airport charges paid by transport operators, like independent operators of car parks near the airport and ride-sharing services, are needed because these services compete with airport car parks.”
He said airports were able to boost demand for their car parks if charges for commercial vehicles to access the terminal precinct were too high.
“We’ve also questioned whether some clauses in contracts between airports and airlines are anticompetitive.
“For the final report we will be examining very closely the charges paid by international airlines to use airport services, like runways and terminals, at Sydney and Brisbane airports,” Mr Lindwall said.
The PC’s 349-page draft report can be accessed at this PS News link.
