Thursday 23rd of February 2012

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Just recently the Regional Express Airlines has applauded the ACCC and its decision to deny Sydney Airport Corporation Limited their request to increase prices for regional carriers. The General Manager of Network Strategy at Regional Express, Warrick Lodge, said that even after the ACCC denied Sydney Airport Corporation Limited, the airport’s media release would still have people believing that Sydney Airport felt it was fair to increase regional fees.

Warrick Lodge said that Sydney Airport Corporation Limited said that they were seeking a modest increase given that regional fees have not increased since 2001. However, he pointed out that, in reality, the airport’s passenger tax revenue from Regional Express has increase by 74 percent over this period.

Lodge went on to say that Regional Express does not have the teams of corporate lawyers that Sydney Airport Corporation Limited does. Thus, they just has to have faith in the system. Regional Express acknowledges and is very grateful for the proactive and decisive decision of the government.

He went on to say that without necessary protection like this, Regional Express would see itself faced with an annual increase of some $3.2 million. This would certainly mean the closure of half a dozen marginal regional routes. Many regional cities have put in submissions to the ACCC voicing their concerns over Sydney Airport Corporation Limited’s proposed price increases.

Warrick Lodge finished up by saying that this highlights the urgent need for the government to consider introducing legislation to re-regulate Sydney Airport, as it is just too hard for small time regional carriers to continually resist the attempts by Sydney Airport Corporation Limited to drive them out of business.


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