Concern over airport monopolies takes off
Australians with a beef about the cost of parking at airports are rightly justified, a new report finds.
A performance review of Australia's airports has found that operating as monopolies can lead to airport infrastructure that isn't always fit-for-purpose.
"We all have a stake in it because we all fly," Deputy Prime Minister Michael McCormack said in Canberra on Thursday.
"We all want to make sure the airports we're flying into are also providing what we need as customers."
Sydney, Melbourne, Perth and Brisbane airports make it to the top six in the world in terms of profit margins.
Airports make up to $27 profit per visiting vehicle.
In fact, the four airports are collecting over 25 per cent more revenue for every passenger today than they were 10 years ago.
Over the same period passenger numbers have increased by nearly 20 per cent.
But the report highlights concerns regarding lack of consultation and working in partnership between Australian airports and airlines.
"This can lead to excessive and unnecessary investment at an airport, instead of building infrastructure that is fit-for-purpose," the report says.
The report, by industry group Airlines for Australia & New Zealand, calls for a better regulatory and pricing environment for airports.
The group's chief executive Dr Alison Roberts said monopolies were incentivised to keep prices high but not improve on quality.
"What we've seen in the absence of an effective regulatory regime sitting over the airports is higher costs for users," Dr Roberts said.
"Quality is remaining stagnant."
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