Blatant profiteering': Qantas accuses airports of fee gouging

  • Sep 12, 2018 AEST
  • Team Kalkine
Blatant profiteering': Qantas accuses airports of fee gouging

To manage price disputes with airports, Qantas Airways (ASX:QAN) is seeking an independent regulator and is against the view that airline has no way to push back on price gouging other than withdrawing services, which isn't a commercial option. After fuel, fleet and people Qantas said airport charges were the company's fourth largest cost. To deliver better airfares and travel experiences for passengers, while Qantas negotiate successfully with other suppliers to reduce costs while charges by Australian monopoly airports are largely non-negotiable. 

The costs have fallen by 4 per cent in real terms since 2014-15, as per the company while charges paid to airports have grown 6.5 percent above inflation. Major airports enjoyed a 25 percent increase in revenue per passenger while airfares have decreased by 40 percent. The price monitoring by ACCC has been ineffective as a deterrent to price increases. Matching levies and fees; inefficient airport investment decisions, excessive airport charges, low quality airport services and opaque airport negotiations. With major Australian monopoly airports falling below the top 10, Qantas says the profits are unrelated to customer satisfaction. The fees for airport parking was also highlighted that the regulatory framework for airports had led to other excessive charges.

The Qantas stock traded at $6.230 with a flat daily price change as at September 12, 2018 (AEST 18:42).

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