Melbourne airport hits back over price gouging claims
Bleary-eyed travellers are being hit hard for a cup of coffee at Melbourne Airport, leaving airlines begging for a crackdown on high prices. But Tullamarine management is defending prices.
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Exorbitant costs for food, drink and services at Melbourne Airport and other Australian terminals are being put under the microscope as airlines beg for a crackdown on price gouging.
Analysis of costs at Australian airports reveals Tullamarine is one of the most expensive, with some items almost doubling when compared to cafes and shops in the CBD.
A large coffee in the terminal can cost $6.30 compared to $3.50 in Melbourne, while a 600ml Coke costs $4.50 compared to $4.15 in the CBD.
In Sydney a coffee can cost $5.70 compared with $3.50 in the CBD, while a 600ml Coke — normally just $3.70 at the shops — is $5.87 at the airport.
The analysis is being revealed amid a war between airlines and airport operators.
Airlines for Australia and New Zealand (A4ANZ) is spearheading the push for airports to be regulated by the Federal Government and have begged Federal MPs to “call time” on the monopoly airports’ regimen.
It comes ahead of the release of the Productivity Commission’s final report into the regulation of airports, due later this month.
A4ANZ chairman professor Graeme Samuel, says a lack of airport competition was driving up costs.
“The retailers’ rents (at the airport) are higher than you will pay at a Westfield shopping centre,” he said.
Melbourne Airport spokesman Grant Smith defended prices at the terminal saying businesses offer a range of prices similar to other Melbourne locations.
“Just like in the CBD, we have retailers across a variety of prices such as those selling two bottles of water for $4 in Terminals 1, 2 and 4,” he said.
“The airport does not tell retailers what to charge and it would be against the law to do so.
“The closest we get is asking those retailers with an off-airport equivalent store to ensure price parity between their high street and airport prices.
“Retailers all over the airport sell a relatively limited set of goods that passengers might consider essential, ensuring competition and choice.”
Meanwhile the Australian Airports Association said the Productivity Commission has previously found there is “no case for change”.
They said regulation was not necessary and that airlines’ real agenda is to drive up profits at the expense of passengers.
“Jetstar charges their customers $5 for a large cup of coffee — do the airlines consider this price gouging?” AAA chief executive Caroline Wilkie said.
“This is not the first time the airlines have used misleading and selective information to hide their true motives.”
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“Airports have invested to give passengers more choice and a better deal.”
The latest price analysis comes after the herald Sun revealed the Melbourne Airport has raked in almost $300,000 a day from carparking over the past 15 years totalling $1.56 billion.
More than $1.1 billion of this was profit, however the Melbourne Airport justified the figure saying it did not include the cost of finance or the amount paid to build the assets.