Melburnian1
Enthusiast
- Joined
- Jun 7, 2013
- Posts
- 24,673
VA's 2IC has publicly criticised what a layman might call (alleged) 'price gouging' at Australia's major airports:
Airport profits out of kilter, says Virgin Australia
Although the ACCC has also been critical, it is not clear what pressure can be brought to bear on these airports. There is no price regulation as far as I know.
On the plus side, privatisation has seen massive increases in passengers handled and a lot of investment, although whether it is 'sufficient' and directed at the 'right' areas is an interesting topic.
However as many of us know, the privatised airports make more money from non-aeronautical revenues than from the airlines as such. Examples include sky high car parking fees as well as a concentration on retailing at airports. If any of us walk through Melbourne Airport's international walkway through its duty free - a circuitous route for passengers - that concentration slaps us in the face, as it does in SYD and elsewhere.
It's surprising that the domestic airlines have taken so long - 20 years to form a lobby group. Internationally, the Board of Airline Representatives in Australia is long established.
Some might suggest that the domestic airlines have some pricing power, as shown by how median airfares are currently rising. So they may be able to pass on increased airport costs to their passengers.
Airport profits out of kilter, says Virgin Australia
Although the ACCC has also been critical, it is not clear what pressure can be brought to bear on these airports. There is no price regulation as far as I know.
On the plus side, privatisation has seen massive increases in passengers handled and a lot of investment, although whether it is 'sufficient' and directed at the 'right' areas is an interesting topic.
However as many of us know, the privatised airports make more money from non-aeronautical revenues than from the airlines as such. Examples include sky high car parking fees as well as a concentration on retailing at airports. If any of us walk through Melbourne Airport's international walkway through its duty free - a circuitous route for passengers - that concentration slaps us in the face, as it does in SYD and elsewhere.
It's surprising that the domestic airlines have taken so long - 20 years to form a lobby group. Internationally, the Board of Airline Representatives in Australia is long established.
Some might suggest that the domestic airlines have some pricing power, as shown by how median airfares are currently rising. So they may be able to pass on increased airport costs to their passengers.
