REX and Sydney Airport.

[DrAndyC]

As a fairly frequent user of Rex I am irritated by moves by Macquarie Bank to increase fees for REX that could make life for REX at sydney almost non viable. Sydney airport allegedly had the highest EBITDAR (82% margin - Earnings Before Interest, Taxes, Depreciation, Amortization and Rent) of any airport in the world.

As a doctor who has worked with other doctors who fly in and out for day sessions to rural australia (and having previously lived and worked in outback australia myself), I also think pushing rural flights to bankstown would be deleterious to attracting specialists (infrastructure to Bankstown isnt exactly great!) as well as the squillions of other movements of labour on a short term basis between city and country areas.

As such if anyone is interested I attach a link to a petition

cheers

Petition for ACCC Inquiry into Sydney Airport :: Participate in Petition

 

[munitalP]

Its not just REX

I have signed your petition - good on you, and I hope the geriatric toothless 3 legged bulldog AKA the ACCC, actually does something worthwhile

munitalP

 

[jsd]

From the Regional Express (REX) Website:

Sydney Airport Corporation Limited (SACL) has had a long-standing agenda to price its services to regional carriers in such a manner as to force relocation to Bankstown airport. While SACL is currently regulated in its pricing of aeronautical charges, it uses other pricing channels to drive their agenda. Exorbitant and unreasonable pricing of parking charges by $3m annually, a 30% increase hangar rental and a 2.9% increase in aeronautical charges to regional air services without any justification are but some examples. The last increase did not go through after Rex challenged it through ACCC. This was made possible as SACL was required to gain approval from ACCC for such related price increases, as directed by the Federal Government:

Securing Regional Airlines' Access to Sydney Airport

The Australian Competition and Consumer Commission (ACCC) has indicated in their latest annual airports monitoring report that SACL has been engaging in questionable pricing practices by means of monopoly rents. Details of ACCC’s concerns of SACL can be found in 3 media releases issued:

ACCC issues annual report on airport performance

Sydney Airport stops certain price rises after ACCC concerns

ACCC objects to Sydney Airport’s proposed increase in charges for regional airlines

The move by ACCC to prevent SACL from increasing their aeronautical charges was met with support by The Hon. Anthony Albanese, Minister for Infrastructure and Transport:

ACCC Decision on Regional Airline Access to Sydney Airport

With such widespread concerns of SACL’s practices, the Federal Government earlier this year announced its decision to bring forward the Productivity Commission (PC) inquiry into privatised airports (originally scheduled in 2012).

Rex fully supports this decision. However the PC does not have the legal powers to compel Sydney Airport to fully open up its books and be fully transparent with its pricing regime. Only an ACCC Inquiry ordered by the Minister under Part VIIA of the Trade Practices Act can achieve this outcome.

Rex has called on its regional stakeholders to join it in urging the Government to institute an ACCC Inquiry into Sydney Airport and is gratified with the extent of support received. Stakeholders can visit here to participate in this initiative.

Rex Letter to Minister Albanese

Rex Calls for ACCC Inquiry into Sydney Airport Pricing

 

[drron]

I have also signed.I have done a few locums in country NSW.To fly DJ out of MCY,interline with Rex makes this feasible.Moving Rex to Bankstown would mean never again.

 

[ButFli]

It's all about the interstate connections for me too. Brisbane to Sydney on Qantas and then to Bathurst or Orange is fairly painless even with the T3 to T2 transfer. If Rex is moved to Bankstown the extra hassle would encourage me to either hire a car and drive from Sydney or just drive from Brisbane. Probably I just wouln't bother because these trips are only for one or two nights. I wonder how much of Rex's traffic through Sydney is connecting with flights on other airlines? I suspect it is a very high proportion. Much higher than any other airline.

Qantaslink are no doubt licking their lips with anticipation. Their only effective competition is about to have its wings clipped.

 

[serfty]

I have also 'signed":

I strongly urge Government to institute an ACCC Inquiry into Sydney Airport
based on the latest annual airports monitoring report indicating SACL has 
been engaging in questionable pricing practices by means of monopoly rents.

 

[GladstoneTim]

Ditto. I've signed. SACL need to demonstrate some social responsibility!

 

[fjc]

Rex Aviation and Petition to ACCC

Rex Aviation (NSW regional airline) is very concerned that the Sydney Airport Corporation Ltd is trying to force it (and other regional airlines) to fly to Bankstown rather than Mascot. Bankstown is much further out from the Sydney CBD and doesn't have the transport connections that Mascot has.

Rex says that SACL is using a number of pricing mechanisms to force it out of Mascot and is calling for an ACCC enquiry. The Productivity Commission has already concluded that SACL is using such pricing mechanisms but has no power.

Petition for ACCC Inquiry into Sydney Airport :: Background

Rex services a number of regional NSW airports, including Dubbo, Orange, Albury etc but the Government, in their wisdom, is stalling about an ACCC enquiry.

Rex are calling for people to email the minister (Albanese) and also their local member. In addition, they have an online petition.

I have no connection with Rex, and have only flown with them once many years ago. However, I fully support their call for an ACCC enquiry.

 

[Justinf]

I signed too. Keep up the good work Dr Andy.