IATA lashes out at changes to Australian airport

A Direction made by the Australian Minister for Financial Service and

Regulation to the Australian Competition and Consumer Commission (ACCC)

Regarding charges at Sydney<.> Airport, recently came under much criticism by the International Air Transport Association (IATA). Direction No 22, which was made to the ACCC on April 19, says that the agency should not take into account the revenues generated, or the costs incurred, in the provision of

services other than aeronautical services, when assessing prices for aeronautical services.

IATA Director General Pierre J Jeanniot told reporters that Australia`s government is ignoring a well-established aviation principle – the contributions from non-aeronautical activities for setting airport charges. He also said that this could in return have serious consequences for airlines using Sydney Airport and, more importantly, their passengers, the ultimate consumers. Moreover, Jeanniot has said that the direction will increase airlines` costs by about AUD $20 million per year, an amount that is likely to be passed on to consumers.

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