Melbourne Airport under fire for pocketing $1.1 billion in parking profits

Frustrated drivers have slammed the “outrageous” cost of parking at Melbourne Airport, with the airport now raking in a whopping $300k a day just from parking. So what can passengers do to avoid the price gouge?

Melbourne Airport has raked in almost $300,000 a day from carparking over the past 15 years.

The airport’s charges brought in $1.56 billion in that time — at a margin of more than 70 per cent.

Its $1.1 billion profits from parking are the biggest for an Australian airport.

The massive earnings can be revealed as airlines, retailers, car rental companies and ride-share drivers lobby for a crackdown on price gouging at airports.

Airlines for Australia and New Zealand chair Professor Graeme Samuel said Melbourne and other airports had charged extravagant carparking fees and retail prices unchecked for years.

“For decades now, Australian travellers have felt the impact of monopoly pricing at our airports, and the ACCC has repeatedly said that we have a problem,” he said.

Australian Finance Industry Association chief executive Helen Gordon, who represents rental car operators, said consumers “bear the brunt of high airport charges”.

The allied businesses are calling for the Australian ­government to protect travellers by limiting costs charged to businesses operating at ­airports, as well as instigate better processes for dispute negotiations.

Melbourne Airport has raked in billions of dollars in parking fees over the past decade.

Tensions over airports’ monopoly power have been bubbling for several years, previously prompting the federal government to direct the Australian Competition and Consumer Commission to monitor the four biggest airports: Melbourne, Sydney, Brisbane and Perth.

Treasurer Josh Frydenberg is considering a Productivity Commission report on the matter, which is understood to recommend against heavy-handed regulation.

In the latest ACCC airport monitoring report for 2017-18, Melbourne’s passenger numbers hit a record 36.8 million and generated $149.9 million in revenue, compared to Sydney Airport’s $136.4 million.

“This resulted in carparking operating profit of $84.8 million for Melbourne Airport and $95.4 million for Sydney Airport.

“Both airports have consistently reported the highest revenues and operating profits from carparking over the last decade.

“In particular, Melbourne Airport has reported the highest revenue for each year over the reporting period.”

Melbourne was also the biggest cash cow per vehicle, reporting the highest revenue at $47.22 a car with an operating profit of $26.70.

However, the report did ­reveal profit margins were trending downwards, providing some relief for flyers.

Melbourne Airport defended the earnings.

Spokesman Grant Smith said the figures did not take into account the cost of building the assets.

Productivity Commission has recommended against heavy-handed regulation. Picture: Mark Stewart

“That’s like doing a family budget and pretending you don’t have a mortgage or rent to worry about,” he said.

“We have to build the infrastructure before anyone can use it. Construction and maintenance of airport infrastructure is all financed through debt, and we set prices that take into account the cost of repaying those loans over time.”

Mr Grant pointed to the free pick-up areas — used by 40 per cent of visitors — which he said are expensive to operate and maintain.

He also pointed out parking, in some cases, was less than the cost of a return taxi ride from the CBD and urged visitors to book online to save up to 50 per cent.

Parking Australia CEO Stuart Norman was against regulation, saying passengers had a range of options when it came to getting to the airport.

“Regulating airport parking prices would purely be a populist move,” he said.

“Travellers have the choice to drive and park on-site at the airport, use any number of off-site parking providers, use public transport such as SkyBus or take a taxi/Uber.

“Airports invest millions of dollars to build and provide parking to assist the travelling public and this should be considered when discussing the profits made from parking.”

Previously, ACCC chair Rod Sims had urged governments to consider building an airport rail link in Melbourne.

The link was given the green light earlier this year.

Construction of the route is due to begin in 2022 and finish in 2031.

Passengers have slammed the cost of parking at Melbourne Airport. Picture: Mark Stewart

PASSENGERS HIT OUT AT AIRPORT’S PARKING PRICE GOUGE

West Footscray couple Stephanie and Matt McGlone usually avoided parking at the airport for long periods because it was “so pricey”.

“We used to park here only when we were dropping people off for short-term,” Mrs McGlone said.

Last week, Mr and Mrs McGlone were able to find a parking deal and were flying to Tasmanian with their eight-year-old daughter Freya, to visit family.

A record 37.3 million people travelled through the airport last financial year, almost 2 per cent more than the previous year. The increase was driven by a 5.3 per cent rise in international travel, with 11.4 million people flying to or from overseas destinations.

The Herald Sun reported late last year that a 10-minute pick-up zone had failed to stop drivers parking illegally to avoid fees.

Wendy Owen had to pay $24 when she collected her husband.

“It’s too expensive,” she said. “Maybe $10 would be reasonable.”

Fellow traveller Gary Owen said the airport was capitalising on people’s desire to wave goodbye to loved ones in ­departures rather than just “dropping them off wherever”.

“It’s outrageous,” he said.

MORE NEWS:

HOW DARING TRIO PLANNED TO ESCAPE PORT PHILLIP PRISON

MELBOURNE BUILDERS’ LINK TO DODGY CLADDING CRISIS

COUNCIL TO SPEND THOUSANDS ON ARMREST REMOVALS

Scott, who didn’t want his surname published, flies to Brisbane for work each week.

He said he was stung about $102 to park for one night because he hadn’t pre-booked.

Rosebud resident Vanessa Herbert, who was laden with bags after a surfing trip, said she paid about $129 to park for five nights.

“The convenience could be better for the amount of money that you pay,” she said.

[e-mail]