On 22 September 2011, the ACCC issued its final decision not to object to Airservices Australia’s revised formal notice (submitted on 9 September 2011) to increase prices for air services. Airservices is the monopoly provider of air traffic control and aviation rescue and fire-fighting services in Australia. These services are paid for by aircraft operators that land at Australian airports and fly in Australian airspace, and are declared under Part VIIA of the CCA. To comply with the CCA, Airservices must notify the ACCC when it proposed to increase prices. The ACCC’s response is not binding and Airservices can implement the price increases after 21 days.
The current formal notice follows on from a draft notice issued in March and a formal notice issued on 22 August. The ACCC considered that the proposed prices in the notice of 22 August were too high and would cause Airservices to over-recover its costs by $35 million over five years. Airservices Australia has now adjusted its prices to address the ACCC’s views. The new prices will come into effect on 1 October 2011