Productivity Commission calls on airports to be more transparent about parking costs

Melbourne Airport is under pressure to open its books and prove it is not ripping off travellers with expensive carparking fees and taxi surcharges.

Melbourne Airport is under pressure to open its books and prove it is not ripping off travellers with expensive carparking fees and taxi surcharges.

The Productivity Commission has warned the nation’s busiest airports are not required to share enough information with the competition watchdog to determine whether motorists and passengers are getting a raw deal.

AIRPORT ACCUSED OF PRICE GOUGING

RESTAURANTS, SHOPS OVERHAULED IN AIRPORT UPGRADE

TULLA RAIL LINK TO GO VIA SUNSHINE

In a draft report, to be released on Wednesday, the commission calls for airports to be forced to reveal how many people are using their car parks, what they are paying and how much revenue is reaped.

The commission also wants more information on access fees charged to taxis, Uber and ride-sharing services and buses so it can ensure airports are not stifling competition with expensive extra costs.

The road into Melbourne Airport’s departure area. Picture: Jason Edwards

Commissioner Paul Lindall said more scrutiny of the nation’s busiest airports was “justified to ensure prices paid by airlines and passengers do not lead to monopoly profits”.

“The commission … would not hesitate to recommend more heavy handed regulation if (the airports) use their market power to charge excessive prices in the future,” Mr Lindwall said.

The commission found that in 2017, 37 per cent of visitors to Melbourne Airport were dropped off or picked up by private cars, while 14 per cent parked at the airport, 19 per cent used taxis and 19 per cent caught buses.

While parking fees had fallen over the last six years, taxi access fees more than doubled and Melbourne Airport charged the most expensive access fee of $4.50 for ride-sharing services.

The commission said while consumers resented the price of parking — which could be more than an airline ticket — airports had not “systematically exercised their market power to the detriment of the community”.

Melbourne Airport’s pick-up lanes. Picture: Jason Edwards

But it said there was insufficient data available and greater scrutiny was needed to “act as a brake” on airports exercising their monopoly power.

The report also raised major concerns about the supply of jet fuel at airports, which cost airlines up to $9 billion for 9000 megalitres last year — nearly a quarter of their operating costs.

“(The supply) is shrouded in secrecy and is dominated by four major oil companies. This has likely led to higher prices for jet fuel,” Commissioner Kenneth Baxter said.

The commission’s final report on the economic regulation of airports, which was ordered by then-treasurer Scott Morrison last year, will be delivered in June.

[e-mail]

@tminear