Proposed fee hike for regional NSW air travel

[Bernie P]

What ELSE can Macquarie levi a fee for at the airport... Mind you, is $0.22 really going to be noticed?

AIRCRAFT passengers travelling within NSW and using Sydney Airport will have to pay increased taxes - if they are approved by the Australian Competition and Consumer Commission (ACCC).

The increase is expected to cost passengers about 22c per person per flight and will go toward security processing, "passenger facilitation", and a runway charge.

Passengers travelling with QantasLink, Jetstar or Virgin Blue - which have independent commercial agreements with the airport - will not be subject to the increases.

Destinations affected by the changes include Dubbo, Wagga Wagga and Armidale.

Sydney Airport CEO Russell Balding says it is the first time charges have increased in nine years and the increase is only about 2.9 per cent, well beneath the 28.9 per cent increase in the CPI since 2001.

He said a number of fees have increased since 2001, prompting a review of passenger and airline costs.

"Sydney Airport is unique in the Australian aviation industry in that its regional aeronautical fees are subject to government price regulation, so the approval of the ACCC will be required before the increases take effect," Mr Balding said today

Source: - news.com.au

[Adam.S]

Won't REX need to impose a similar price hike on their ticket prices in the near future after their recent order of 20+ new aircraft?

[Chris W]

Not precisely fair for Rex and Aeropelican pax.
So all the competing regional airlines against the majors Qantas and Virgin Blue get slugged with extra fees because they dont have a specific contract with SACL. It may only be 22cents, but that is per passenger.

Rex has 1300 flights per week and approx 50% are in NSW. So 650 flights at 34 seats and an average load factor of 65%, gives you 750,000 pax per year. Thats $165,000 per year.

And what 20 + aircraft order?

[Paul f.]

Originally Posted by Adam.S

Won't REX need to impose a similar price hike on their ticket prices in the near future after their recent order of 20+ new aircraft?

What 20 new aircraft on order Adam

[Nigel C]

Does anyone know what the current tariff per passenger is for Qantas, Virgin Blue and Q-Link, and how does this compare to the new structure for Rex, Aeropelican and I presume Tiger?

Mind you, given it's the first increase since 2001, that equates to a rise of just under 3c per passenger per year since the last increase, so I personally don't think it's that unreasonable.