Frustrated operators raise issue of airport access charges with Productivity Commission

MELBOURNE Airport has been accused of price gouging private operators in a series of frustrated submissions made to the Productivity Commission.

MELBOURNE Airport has been accused of price gouging private operators in a series of frustrated submissions made to the Productivity Commission.

Fed-up companies have told an inquiry into airport regulation that surging access fees are causing major hip-pocket pain for consumers at Tullamarine.

In one letter, a group of private parking operators at major terminals around Australia argue that increased access charges were impacting customers.

“Extraordinary on-airport parking revenues and eroding viability of competitive parking and transport alternatives have been topical in ACCC Reports since this statement,” one submission reads.

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Taxis queue for passengers at Melbourne Airport. Picture: Jason Edwards

“To make the point, Melbourne Airport access fees were $2.30 per single access for mini buses on January 1, 2014.

“Today, they are $4.04, with congestion fees applied after 10 minutes.”

In another statement, Essential Services Commission chairman Dr Ron Ben-David said the charges had made it difficult to manage the price of taxi fares.

“On two separate occasions, Melbourne Airport has asked us to increase the airport rank fee that taxis may charge passengers,” he said in a submission.

“On both occasions, Melbourne Airport said it would increase the access fee regardless of our decision.

“As the taxi industry is made up of thousands of small businesses, taxi service providers are not in a strong position to negotiate with Melbourne Airport on the scope or price of the services the airport provides them.”

Melbourne Airport’s chief of parking and ground access Lorie Argus. Picture: Nicole Garmston

But Melbourne Airport’s chief of parking and ground access Lorie Argus said the airport stood by its commitment to manage costs for consumers.

“Airport access fees are charged to commercial transport operators to help recover some of the costs the airport incurs to build and maintain infrastructure used by these businesses,” she said.

“In the case of taxis this includes holding areas for around 800 vehicles, along with dedicated roads, rank infrastructure, dedicated toilets and cafe facilities, and amenities including an airconditioned, multi-faith prayer room.

“In the case of off-airport car park operators, these charges contribute to construction and maintenance works in the terminal forecourt.

“Access fees are determined on a cost-recovery basis, to help pay back the loans we take out to build the infrastructure upfront.”

Ms Argus said the most common mode of transport for airport passengers was free public pick-ups and drop-offs.

“Earlier this year we added a dedicated 10-minute free park and wait zone with around 300 spaces in it, to continue supporting this passenger segment.

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