Airlines have won a protracted lawsuit against Sydney airport that revives likely oversight of airport fees by Australia’s Competition and Consumer Commission (ACCC).
Australia’s competition tribunal has ruled that Sydney airport misused its monopoly power and is likely to do so again. To prevent that, the tribunal says that in the event of a future impasse between an airline and the airport over fees, either party may take the dispute to arbitration conducted by the ACCC.
Among the evidence cited by the court for its finding of monopoly misuse was that Sydney had switched its method of calculating fees from maximum take-off weight to a per passenger basis solely “because Qantas preferred it” and that the airport knew its change “would impact more adversely on Virgin Blue than on Qantas”.
Virgin Blue filed the lawsuit, which lasted three years, but Qantas is equally pleased with the result. Both carriers claim airlines now have much-needed leverage in negotiating airport fees. The ruling only affects domestic airlines at Sydney, but may encourage similar challenges at other airports.
What the government will do in response to the ruling remains unclear. The transport ministry says the government does not favour “widening” airport regulation or giving the ACCC oversight. ■
Source: Airline Business