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CEOs of two of Australia’s biggest airlines, calling for the federal government to come in and regulate airports, in order to cut down on customer costs and fees.
Qantas CEO Alan Joyce, alongside Virgin CEO Paul Scurrah, spoke at the National Press Club, held in Canberra recently, saying that airports have customers under their thumb thanks to their monopolies, which result in customers having to deal with high fees just to get to the country and board their Cairns to Port Douglas shuttle, or wherever their destination is.
The two bigwigs are saying that Australian airports and their monopolies are excessive with their fees, and are damaging the country’s economy, as a result, their behavior enabled by a lack of actual regulation, control or intervention to keep them in line.
Mr. Joyce notes how Australia is home to four of the world’s most profitable airports, yet, none of these airports are rated as some of the best in the world, showing a notable discrepancy in profit and customer satisfaction.
Mr. Scurrah, meanwhile, notes that the unregulated status of the airport industry in Australia means that the airports have free reign to set fees as they see fit, noting how one Aussie airport’s 2018 annual report stated proudly that their revenues from their aeronautical services went up by 52%, in spite of aircraft movements dropping by 0.03% in the same time period.
Their comments came just before the publication of the report by Treasurer Josh Frydenberg’s Productivity Commission, which will be the basis on decisions regarding the regulation of Australia’s airports.
Mr. Joyce took some heat after it was revealed that he was the country’s top-earning executive in 2018, receiving a total salary of about $24 million in the same year his company posted a massive profit of $1.6 billion.
As for the airports, a report by the Australian Competition and Consumer Commission (ACCC), released in February 2019, noted that the parking costs dropped for the country’s four biggest airports, to the benefit of travelers without a Cairns to Port Douglas shuttle or something of the like.
ACCC Chairman Rod Sims explains that these drops are a good example of what competition can do for pricing, with airport parking under threat from off-airport parking, ride sharing, as well as public transport.
A few years ago, the answer the demand for more hotel rooms in Phuket, many developers opened accommodations in the island including https://www.novotelphuketkamala.com/ which is currently one of the most booked. To further improve its tourism industry, Phuket is planning to upgrade more international airports around the resort island.
Next week is one of the most anticipated events in Phuket known as the Third Global Aviation Cooperation Symposium to be attended by members of ICAO or International Civil Aviation Organisation. It serves as a gathering for those who are in the aviation department because they will tackle the most pressing issues in the aviation of Thailand. Authorities who will be coming to the event are proposing to request the United Nation agency to grant the endorsement of five additional airports in Phuket serving international routes.
During the same event in Phuket, local authorities want to ask for the recognition from the International Civil Aviation Organisation so that the UdonThani airport will be promoted as the latest international airport in the country.
The symposium will last for three days starting on July 22 and will end on July 24. The reason why the event was organized is partly due to the potential that was seen by ICAO with regards to the aviation sector of Thailand. This piece of information was disclosed by Chula Sukmanop, the current chief of the CAAT or Civil Aviation Authority of Thailand.
It was in 2017 when ICAO imposed a red flag on Thailand’s aviation because it did not comply with the international standards with regards to safety concerns. Mr. Chula said that they are not stopping here since they are still trying to improve. In fact, CAAT is planning to request for the endorsement of ICAO in order for them to upgrade five airports including Samui, Krabi, Hua Hin, Surat Thani and UdonThani.
More tourists are recorded to have visited https://www.novotelphuketkamala.com/ which means many are planning to visit Phuket in the coming months. Mr. Chula wanted to make sure that they are complying with the international standards for aviation in order to avoid being red flagged for the second time.