Asia Pacific Digest
  • Infrastructure
  • Regulations
22 October 2019

Australian Government Needs to Challenge Productivity Commission’s Final Report

IATA is calling on the Australian Government to challenge the recommendations of the Productivity Commission’s (PC) final report that the existing regulatory regime is effective, and changes are not needed.

“The PC continues to ignore the collective views and concerns of airlines and airport users and in turn, the interests of the Australian consumer. We have consistently highlighted throughout the Inquiry period the serious concerns of airlines and that the current light-handed regime of economic regulation is ineffective in protecting the interests of airlines passengers, and the people and businesses accessing the Airport precinct,” said Matteo Zanarini, IATA’s Area Manager for the South West Pacific.
Aviation is an important economic contributor to Australia, supporting over 700,000 Australian jobs, and contributing $69 billion or 5.5% of the country’s GDP. “This faces imminent risk if the aviation sector is not supported by the right policies that facilitates the sustainable development of the industry,” said Zanarini.
IATA has identified six principle areas that need to be strongly addressed by regulators in Australia:

  • The current Economic Regulatory Regime does not address or exercise remedial action where monopolistic behavior by Australian Airports is identified
  • The current Monitoring Regime is not Fit-For-Purpose
  • The assertion that airlines have countervailing power at Brisbane, Melbourne, Perth and Sydney airports is incorrect
  • 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.
  • Lack of effective competition in jet fuel supply
  • Implementation of measures that will result in the efficient management of scarce airport capacity, particularly at Sydney Kingsford Smith Airport.
“The conclusion of PC’s final report is wrong. The existing regulatory regime is ineffective. Change is urgently needed. And the Australian Government needs to challenge the PC’s report and re-invigorate the consultation process with airlines and airport users,” said Zanarini.

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