Melbourne Airport

Media

Airport welcomes Productivity Commission response

May 01, 2007

Melbourne Airport has welcomed the Federal Government's response to the Productivity Commission's Review of Price Regulation of Airport Services.


The Government's decision to maintain its light-handed approach to price-regulation and further streamline monitoring arrangements is welcome news for the industry, passengers and the economy.

Melbourne Airport CEO Chris Barlow said the decision would build upon the success and benefits of the past 5 years, while providing clear direction on a number of issues which will enhance the framework under which airports and airlines negotiate.

“Over the past 5 years, a light-handed regulatory regime has delivered value for airlines and their passengers whilst fostering a constructive working environment for the industry. It has enabled Melbourne Airport to deliver one of Victoria's largest infrastructure programs without government funding and without new price increases for its customers. This infrastructure has supported tourism and passenger growth, which benefits business, the community and the local economy,” Mr Barlow said.

“Particularly welcome is the Government's decision to amend Part IIIA of the Trade Practices Act. This change addresses the uncertainty that currently exists around access to Part IIIA and will provide airports with greater confidence for future investment.”

“We also welcome improved clarity on the issue of aeronautical asset valuation. The approach the Government has taken on this matter reflects the approach that Melbourne Airport has always adopted when negotiating aeronautical charging arrangements with our airline partners. “

The announcement will enable airlines and airports to better negotiate business arrangements directly, ensuring outcomes that best serve both partners.

This will provide airports with the confidence to continue investing in infrastructure that will support future aviation growth, with the agreement of airlines. Melbourne Airport is currently in negotiations with its airline partners on an infrastructure development program that will result in an investment of over half a billion dollars over 5 years.

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