The International Air Transport Association (IATA) is urging the Australian government to take the necessary and long overdue steps to strengthen the economic regulation of services provided by airports.
In its submissions to the Productivity Commission (PC) Inquiry on the Economic Regulation of Airports, IATA has consistently highlighted six areas that need to be addressed:
- The current Economic Regulatory Regime does not address or exercise remedial action where monopolistic behavior by Australian Airports is identified
IATA disagrees with the PC’s opinion that abuse of market power at the four monitored airports (Sydney, Melbourne, Brisbane, Perth) is not systematic and therefore there is no justification for a change in regulation.
The evidence of market power exists and the Australian Government should increase the level of scrutiny before reaching any final conclusions.
- The current Monitoring Regime is not Fit-For-Purpose
The existing monitoring regime has fallen short of delivering the key strategic outcomes envisioned by the Australian Government in moving to light-handed economic regulation in 2002.
It is important for the Australian Government to bring about change to the monitoring regime to ensure consumers are accorded with the necessary protection from excessive charging practices by the Australian airports.