Air Navigation Amendment Regulations 2000 (No. 3) 2000 No. 360
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 360
Issued by the Authority of the Minister for Transport and Regional Services
Air Navigation Act 1920
Air Navigation Amendment Regulations 2000 (No. 3)
The Air Navigation Act 1920 ("the Act") provides for the regulation of civil aviation to, from and within Australia. Under subsection 26(1) of the Act, the Governor-General may make regulations for the purposes of the Act. Paragraph 26(1)(b) of the Act provides for the Governor-General to make regulations for the purpose of carrying out and giving effect to the Chicago Convention. Article 6 of the Chicago Convention provides that no scheduled international air service may be operated over or into the territory of a contracting State, except with the special permission or other authorisation of that State, and in accordance with the terms of that permission or authorisation. Paragraph 26(1)(d) provides for the Governor-General to make regulations in relation to air navigation with respect to trade and commerce with other countries.
These regulations amend the Air Navigation Regulations 1947 to facilitate implementation of Government policy to minimise interference with the market price of airline fares and prices (tariffs) other than through the general provisions of competition law. To bring the policy fully into effect will also require changes to current bilateral arrangements. Negotiation of these changes is an objective of Australia's ongoing program of bilateral air services consultations.
Previous tariff regulations were outdated, complex and contained provisions that were inconsistent with Government initiatives to further liberalise Australia's international aviation sector. They required the holder of a licence to operate a scheduled international air service to submit its tariff of charges for approval.
These regulations provide for voluntary submission of tariffs, and approval is automatic if, seven days after the date the tariff was submitted, the Secretary of the Department of Transport and Regional Services has not notified the applicant of either disapproval or approval with conditions.
The Secretary retains a reserve power under Regulation 19 to direct the holder of an international airline licence to submit its tariff for approval where there are concerns about public and consumer interests and provisions of relevant international air service agreements. The Secretary is also able to request further information about a tariff The regulations also added a short definition of the term 'tariff' to existing definitions in Regulation 3.
The regulations significantly simplify the process for filing and obtaining Australian Government approval of tariffs for all international airlines serving Australia while providing for the minimum level of regulation consistent with Australia's air service treaty obligations.
There are no specific penalties included in the regulations. Existing general penalties for offences against the Regulations that are detailed in Regulation 121 apply to offences against the provisions of Regulation 19.
The regulations have beneficial effects for international airlines serving Australia in that the current requirement for lodging all tariffs for approval has been removed. Many airlines will save on administrative costs in lodging details of tariffs where bilateral arrangements do not require approval of tariffs from both Governments.
The regulations permit electronic filing of tariffs. The Government's administrative costs associated with administering tariff regulations will also be reduced.
Many of Australia's bilateral partners still require airlines designated under their air services agreements to obtain the approval of both parties before a tariff enters the market. Airlines needing to lodge tariffs to fulfil treaty obligations will benefit as a result of the automatic approval process that applies in the vast majority of cases.
All international airlines serving Australia were consulted directly in relation to the drafting of these regulations separately to the original RIS process.
The Regulations commenced on gazettal.
Overview
The Air Navigation Amendment Regulations 2000 (No. 3), issued under the authority of the Minister for Transport and Regional Services, were enacted to address outdated, complex, and inconsistent tariff regulations that conflicted with government initiatives aimed at further liberalising Australia's international aviation sector. These regulations amend the Air Navigation Regulations 1947 by simplifying the process for filing and approving tariffs for international airlines serving Australia, thereby facilitating market-driven price adjustments and reducing administrative burdens on both the airlines and the government. This aligns with the policy objective of minimising interference with airline fares and prices, except through competition law, while maintaining compliance with Australia's international air service treaty obligations. The regulations allow for voluntary tariff submission with automatic approval unless otherwise notified by the Secretary within seven days, and retain the Secretary's power to intervene where public or consumer interests are at risk.
Scope and Application
The Air Navigation Amendment Regulations 2000 (No. 3) pertains to all international airlines operating scheduled services to, from, and within Australia, aiming to streamline the regulatory process for tariff submissions. These regulations are made under the Air Navigation Act 1920, which encompasses the regulation of civil aviation in Australia, and are designed to align with Australia's commitments under the Chicago Convention, particularly concerning the operation of international air services. The regulations apply to any airline holding an international licence to operate scheduled services into Australia, and they extend to the approval and regulation of tariffs charged by these airlines. Notably, the regulations provide for voluntary tariff submissions, where approval is automatic unless the Secretary of the Department of Transport and Regional Services intervenes within seven days of submission, thus reducing administrative burdens on both the airlines and the government. Although these regulations simplify the process, they ensure compliance with international obligations and maintain oversight where public and consumer interests are concerned.
Key Provisions
The Air Navigation Amendment Regulations 2000 (No. 3) (the Regulations) amend the Air Navigation Regulations 1947, primarily concerning the submission and approval of tariffs by international airlines operating scheduled services to, from, and within Australia. Section 1 of the Regulations permits the voluntary submission of tariffs by airlines, with automatic approval granted if the Secretary of the Department of Transport and Regional Services does not notify the airline of disapproval or conditions within seven days of submission (Regulation 19). This streamlined process aims to facilitate the implementation of government policy to minimise interference with airline fares and prices (tariffs) through means other than competition law.
These Regulations impose specific obligations on the parties they govern. Primarily, they require international airlines to submit their tariffs voluntarily for consideration, with automatic approval unless otherwise specified by the Secretary (Regulation 19). The Secretary retains the authority to direct the submission of tariffs if public and consumer interests are at stake or if they conflict with international air service agreements (Regulation 19). Additionally, airlines must comply with any requests for further information regarding their tariffs to ensure they meet the necessary regulatory standards.
There are no specific penalties detailed within the Regulations themselves. However, the existing general penalties outlined in Regulation 121 apply to any breaches of the provisions in Regulation 19. These penalties could include fines or other administrative measures as prescribed under the general regulatory framework. The streamlined process for tariff submission and approval is intended to reduce administrative burdens on both airlines and the government while ensuring compliance with Australia's international aviation obligations.
The Regulations provide several benefits, particularly for international airlines operating in Australia. By removing the mandatory requirement for tariff approval in most cases, airlines save on administrative costs, particularly where bilateral agreements with other countries do not necessitate government approval. The automatic approval process also benefits airlines by reducing the time and effort required to comply with Australian regulations. Moreover, the introduction of electronic filing further simplifies the process and reduces administrative costs for the government. Overall, the Regulations aim to balance regulatory oversight with the need for efficient market operations.
The Regulations commenced on the date of their gazette, ensuring immediate effect. This timely implementation was achieved through direct consultation with international airlines serving Australia, separate from the usual Regulatory Impact Statement (RIS) process. This approach ensured that the interests of airlines were adequately considered in the drafting of the Regulations, facilitating a more responsive and tailored regulatory environment.