Page 73 - AA 2018_11

Battle lines

submission said.
“The commission should
recommend that the government
conduct a comprehensive review of
Sydney Airport’s operating restrictions
with the scope of any such review to
include the unintended consequences
of the operating restrictions.”
Sydney Airport said the cap was
“artificially compressing the peak”
period as airlines who were unable to
operate arrival and departure flights in
quick succession during peak periods
had to schedule its arrival before and
its departure after the peak period.
“The result is that aircraft spend
more time on the tarmac occupying
competition within the greater Melbourne Airport says that key infrastructure such as gates,”
Brisbane area, Avalon continues as a federally-leased airport it Sydney Airport said.
to snap at Melbourne’s heels, and is required to provide access Canberra Airport has backed the
Hobart, Devonport and Launceston to airlines that request it. lifting the restrictions at Sydney
compete with each other and the melbourne airport Airport, arguing “Australia depends on
Spirit of Tasmania in the Tasmanian Sydney”.
fly-drive market,” the AAA said. “Any disruption there is amplified
“Badgerys Creek will provide around the nation, and airlines
significant competition to Sydney can take two or three days to
Airport for passengers, especially recover,” Canberra Airport told the
those in the western suburbs.” commission.
The AAA said domestic market “It is beneficial to everyone to
concentration, “and in particular maximise the operation of this critical
Qantas’s dominance”, significantly asset.”
reduced airport market power and
could facilitate attempts to limit The curious case of the “ransomed”
competition in air transport markets. Qantas 737
“Disputes are not evidence of abuse The stoush between airports and
of market power,” the AAA said. airlines became very public earlier in
“On the other hand, airlines not 2018 when Qantas accused Canberra
entering agreements may be evidence Airport of holding a Boeing 737-800
of airlines exercising market power to to “ransom” after the aircraft was
the detriment of competitors, airports diverted en route from Auckland to
and the travelling public.” Sydney due to weather.
Canberra Airport denied the
Cap reform charge, describing them as “absolute
Sydney Airport’s submission to the baloney”.
submission said. Productivity Commission called on Speaking at a CAPA – Centre for
It noted an aeronautical services the federal government to revisit the Aviation conference in Sydney in
agreement (ASA), which covered the operating restrictions currently in early August, Qantas group executive
use of the airfield including runways place. for government, international and
and taxiways, and the use of the The airport is limited to 80 aircraft regulatory affairs Andrew Parker
international terminal, took about movements in any 60-minute period described Canberra Airport as a
two years to complete, including 12 between 0600-2300, has a 2300- glorious terminal.
months of direct negotiations with fence” where a number of takeoff and ‘Melbourne The description was not a
0600 curfew and a “regional ring
airlines. compliment.
The AAA said there was “no 1500-2000 are earmarked for regional Airport “It is one of the most expensive
landing slots between 0600-1100 and
evidence of abuse of market power by in Australia, and we are expected to
major airports”. services. described its cover those costs. They’re the sorts of
Its submission noted that in the The caps were a “blunt and outcomes we don’t think work for us
domestic market there were some well below Sydney Airport’s capacity of negotiations or the travelling public,” Parker told
inflexible instrument” and at levels
opportunities for airport substitution. delegates at the event.
“It is the AAA’s view that the ability “well above 90 movements per hour”. with airlines Parker argued for more
of airlines to substitute routes, and “Sydney Airport is increasingly transparency regarding fees the
constrained by outdated operating
therefore airports, is as germane as requirements which are not delivering as “complex airports charged their airline
the ability of individual passengers customers.
to substitute airports in their travel their intended objectives while having and often “It has to be dealing with the gold-
choices,” the AAA said. significant impacts on the aviation plated issue of ‘build it and they will
“Conditions continue to develop network and national productivity difficult”.’ come’, we need you to fund our capital
in south-east Queensland for more generally,” Sydney Airport’s projects,” Parker said.
NOVEMBER 2018 73