Airport profits take off while quality of service remains grounded

The ACCC has reported that more investment will be required for airports to adequately deal with current congestion, accommodate future passenger growth and improve service levels.


“The annual Airport Monitoring Report for 2012-13 shows that all monitored airports continued to be profitable, however, for the second year in a row, only one airport achieved a quality of service rating higher than ‘satisfactory’ while there were continued signs of congestion,” ACCC Chairman Rod Sims said.

“Brisbane was the only airport to improve its quality of service, while Sydney Airport’s overall quality of service was again rated the lowest among monitored airports.”

The ACCC reports annually on the performance of Brisbane, Melbourne, Perth, and Sydney airports.

While Brisbane Airport improved its quality of service rating marginally, ratings for the other monitored airports remained comparatively flat during 2012-13.

“All airports also reported higher car parking revenues in 2012-13’ Mr Sims said.

All monitored airports reported growth in revenues and margins from their aeronautical services. Relatively strong growth in both domestic and international passenger numbers and increases in some aeronautical charges contributed to this result.

“With growing profits and limited competition airports are in a position to improve their capacity and the quality of service,” Mr Sims said.

The report argues that continuing signs of congestion suggest that despite recent investment, it is not clear that the type, size and timing of the investments have added sufficient capacity to avoid aeronautical and landside congestion.

“It is likely that the current infrastructure at monitored airports will be under increasing pressure in future years given evidence of aeronautical and landside congestion at some airports,” Mr Sims said.

Photo Credit: ecstaticist