AAA highlights how current regulatory approach is delivering positive outcomes for community and industry


The AAA has appeared at the Productivity Commission inquiry into the economic regulation of airports today, confirming the current system was working well and has delivered more choice and value for passengers.

AAA National Chairman Guy Thompson and Chief Economist Warren Mundy participated at the hearings in Melbourne.

Mr Thompson welcomed the draft report findings that the current regulatory approach is fit for purpose, saying this conclusion was drawn after detailed and rigorous analysis by the Productivity Commission.

Dr Mundy said this was consistent with the research commissioned by the AAA that found aeronautical returns did not represent an abuse of market power by airports.

The AAA supported the draft report findings that a proposed arbitration framework was not required and could put investment at Australia’s major airports at risk.

“A4ANZ’s inability to answer questions about their own proposal today demonstrated how ill-conceived the domestic airlines’ call for arbitration is,” Dr Mundy said after the hearing.

“The airline lobby failed to present a single shred of evidence to support the notion that their proposed framework would deliver improved outcomes for Australia’s aviation sector and its customers.

“If anything, their confusing and illogical explanation inferred that their framework would add further complexity to the existing process.”

Dr Mundy said it was unfortunate that domestic airlines were attempting to discredit a robust inquiry process for their own gain, when it was put in place in the interests of the community and broader economy.

“A4ANZ has made a deliberate decision to attack the independent umpire and undermine a process that has served the public interest and enjoyed bipartisan support for more than a decade,” Dr Mundy said.

“The evidence clearly shows that the current system is working.

“We have a healthy, vibrant aviation sector that is best-placed to deliver improved outcomes for customers, the community and the national economy.”


28 March 2019


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