In March 2016, Airservices Australia (AA) withdrew the five year pricing proposal that it released in August 2015, proposing instead to freeze prices at their current level until 30 June 2017. The current pricing agreement between AA and carriers is due to expire in June 2016. The August 2015 proposal would have seen prices increase by 5.3% in the first year with a weighted average increase of 3.3% over the life of the agreement.
This revised proposal is made against the background of the Harper Review and expressed the view that the pricing structure for services provided by AA should be the focus of further reform. Although the Government response to the Harper Review did not expressly address this issue, the view expressed in the Harper Review provides an opportunity for stakeholders to seek reform in this area. AA's decision to freeze prices may represent an acknowledgement of the concern within the industry.