Qantas Response to Productivity Commission Draft Report on Airport Pricing

Sydney, 07 September 2006

Qantas said today that it was disappointed at the Productivity Commission's draft report on airport pricing, which was released today, and would make a further submission.

Qantas Executive General Manager Associated Businesses, Mr Grant Fenn, said Qantas was amazed that the Commission would continue to support the unfettered monopoly power of Australia's airports.

"It is particularly concerning that the Productivity Commission has completely rejected our request for binding arbitration where airlines and airports are in dispute over pricing and non-price terms and conditions.

"This means that airports can continue to raise prices and restrict access whenever they feel like it and there is nothing that airlines or passengers can do about it," he said.

"The only people to benefit from the Productivity Commission's approach to this pricing regime are shareholders of the airports.

"The airports' misuse of market power has already been demonstrated time and again through Australian Competition and Consumer Commission monitoring, and was also highlighted by the Australian Competition Tribunal's finding against Sydney Airport last year," Mr Fenn said.

Mr Fenn described the Commission's draft report as simply an attempt to justify the flawed policy setting it had recommended in 2002.

Issued by Qantas Corporate Communication (Q3479)