Re: Adelaide Airport & Airline News
Posted: Tue Jun 07, 2011 8:41 am
Air levies make us too costly to visit
http://www.adelaidenow.com.au/ipad/air- ... 6070577946
INTERNATIONAL airlines are paying more than two and a half times as much to fly into Adelaide.
The State Government and Adelaide Airport Ltd have asked for these Federal Government levies to be reduced because they discourage airlines from servicing the state, and result in increased ticket prices.
Airlines pay an average of $4788 in government taxes for an A333 flight to Adelaide compared with other Australian capital cities. The cheapest capital, Melbourne, is at $1864, and the average at $2791.
Transport Minister Pat Conlon said he had written to the Productivity Commission about the charges.
"The Airservices Australia charges heavily disadvantage relatively low volume airports like Adelaide and are more than double the average of the other airports," he said.
Mr Conlon's letter indicates he is supportive of the proposal from Adelaide Airport Limited.
"The preferred position endorsed by the SA Government is for a return to network charging (parity with other airports)," he said.
The high taxes disadvantage Adelaide because they are factored into airline decisions about how many flights to bring in to the city.
Combined with airport charges, an international airline flying an A333 in and out of Adelaide would pay out $15,662 compared to the least expensive airport, which is Melbourne, at $10,346.
AAL general manager of corporate affairs John McArdle said the company's passenger charges were in the mid range of that charged by other capital city airports.
"However, the charges set by Airservices Australia are considerably higher than any other capital city airport, and two-and-a-half times higher than Sydney on a comparable international flight turnaround," he said.
"The State Government has supported our view that Airservices Australia's charges are inequitable and hinder our ability to attract new airlines and more flights."
Mr Conlon, in his letter to the Productivity Commission, also states that while the State Government has a good working relationship with the airport operators, it was "concerned" with developments on the site of the airport putting pressure on road infrastructure outside the airport which had to be upgraded at taxpayer expense.
Under normal circumstances, developers upgrade roadworks outside the limits of their developments resulting from increased traffic flow.
"In the past this has removed the government's ability to require the developer to fund the upgrading of an adjacent off-airport road intersection made necessary by the proposed development," Mr Conlon states.