ACCC report confirms airport investment is driving growth, delivering better facilities for passengers

 

The Australian Airports Association (AAA) welcomed today’s release of the 2017-18 ACCC airport monitoring report covering Brisbane, Melbourne, Perth and Sydney airports, noting it reinforces the recent findings of the Productivity Commission.

AAA Chief Executive Officer Caroline Wilkie said the report also found airports were delivering good outcomes for passenger and airlines.

“Information in today’s report validates the Productivity Commission’s findings in its recently released draft report on the economic regulation of airports that the monitored airports are not abusing their market power in car parking and aeronautical services to the detriment of the community,” Ms Wilkie said.

“It is particularly pleasing that the report indicates all four airports have achieved an overall quality of service rating of ‘good’. 

“This shows that the years of investment in technology and infrastructure by our major airports is bearing fruit for passengers and airlines alike.

“This year’s report confirms that airports have invested in providing more choice and convenience for passengers as they’ve expanded international capacity, improved services and facilities and facilitated a wide range of options for getting to the airport.

“Private investment is helping to grow tourism and trade for the benefit of our economy and community, and supports the Productivity Commission’s draft finding that the current regulatory approach is fit for purpose.

“Aeronautical profitability remains consistent with previous years based on the Productivity Commission’s preferred measure of return on assets. 

“It is also pleasing that the ACCC has endorsed the AAA’s view that increasing revenues per passenger are related to a changing mix of international and domestic passengers as well as investment outcomes.”

The report also found car parking operating profits had fallen at three of the four monitored airports as they invested in facilitating a wide range of transport options for people travelling to the airport.

Up to 47 per cent of visitors using paid parking booked online, where discounts were available. Airports also made available free pick up and drop off areas for airport visitors.

“In some cases, online booking for car parking offered discounts of up to 46 per cent, making this a great option for passengers as they plan their journey to the airport,” Ms Wilkie said.

Ms Wilkie said it was pleasing to see airports’ investment in dedicated pick up and drop off zones for users of rideshare services had led to increasing demand for these options.

“This report is an important validation of the recent findings of the Productivity Commission,” Ms Wilkie said. 

“However, airports are not complacent and understand there are areas where they can continue to improve outcomes for passengers and airlines alike.  We look forward to working with all industry stakeholders to achieve those ends.”

ENDS

25 February 2019

 

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