SACL looks for lift in regional fees

Sydney Airport has applied to the ACCC for an increase in aeronautical charges for regional operations.

SACL wants to lift the security charge from 87 to 90 cents per passenger, increase the passenger facilitation charge by 13 cents to $4.63 and raise the runway charge by 10 cents to $3.54 per tonne.

However, none of this would apply to the airport's biggest customers, because QantasLink, Jetstar and Virgin Blue already have commercial agreements in place. So it basically means Regional Express...

SACL reckons it's all fair enough as there hasn't been any increase for Rex (et al) since 2001.

The CEO of Sydney Airport, Russell Balding, said that the proposed fees represent a maximum increase of 2.9 per cent which only represents one year of inflation and is significantly less than the 28.9 per cent increase in the CPI since 2001.

“Since 2001 a host of business costs have increased, which is why this fee increase is now being sought," Balding said.

“Regional fees have not increased since 2001, but Sydney Airport feels it is now fair and reasonable to seek a modest increase.

“Sydney Airport is unique in the Australian aviation industry in that its regional aeronautical fees are subject to government price regulation, so the approval of the ACCC will be required before the increases take effect.”

SACL also points out that "There is no change to access arrangements for regional airlines at Sydney Airport" - which is true because of government regulation to that effect, rather than due to any generosity on SACL's part.

Now we will see what sort of case Rex will present to the ACCC.