EXPLANATORY STATEMENT
Issued by the authority of the Administrator of the Territory of Christmas Island
Christmas Island Airport Facilities Determination (No. 1) 2016
Authority
The Administrator of the Territory of Christmas Island (Christmas Island) (the Administrator) has made this Determination in accordance with the power granted to him under section 4 of the Utilities and Services Ordinance 1996 (CI).
This Determination is a legislative instrument for the purpose of the Legislative Instruments Act 2003.
Purpose and Operation
The purpose of this Determination is to ensure that the Landing Fees at the Christmas Island Airport are consistent with other Code Four Airports within Western Australia including: Geraldton, Learmonth, Port Hedland; and Kalgoorlie. Airports are coded based upon their field length with the Christmas Island Airport having a field length of over 1800 metres.
This Determination will also exempt international air service operators from paying a Landing Fee for using the Christmas Island Airport.
Other Fees and Charges associated with the use of the Christmas Island Airport are not being included in this Determination.
The Utility and Services Ordinance 1996, No. 1/97 Christmas Island Airport Fees (1997 Determination) currently provides for three time periods, with these being:
Daylight Operations
0001 – 1100 Coordinated Universal Time (UTC)
UTC is a time standard used worldwide. At any time, the current UTC time is the same as Greenwich Meridian Time. UTC is used to calculate the times in individual time zones worldwide.
Night Operations 1
1101 – 1400 UTC
Night Operations 2
1401 – 0000 UTC
Importantly, the proposed Determination will have only two time periods, with these being:
Daylight Operations
0001 to 1100 UTC
Night Operations
1101 to 0000 UTC
This new Night Operations time period will consolidate the two Night Operations in the 1997 Determination (1101 – 1400 UTC and 1401 – 0000) into one Night Operations time period.
The two time periods in the proposed Determination are consistent with standard operating practices of the other airports within Australia.
The proposed Landing Fees were determined by comparing the fees levied at other Code Four Airports within Western Australia and averaging these charges.
The Landing Fee for the Christmas Island Airport was last gazetted on 30 January 1997 in the Government Gazette (Gazette Number F40 – 001).
Impact on Airport Users
The Department of Infrastructure and Regional Development expects that by exempting international air service operators from paying a Landing Fee for using the
Christmas Island Airport, there will be a resultant decrease in passenger airfares for international air services.
The Department notes that the increase in the Landing Fees for non-international air services operators will need to be incorporated into business operations by affected air service operators or be passed on to passengers.
Under the existing air service contract between the Commonwealth and Virgin Australia Airlines (VAA), the Commonwealth underwrites the provision of regular air services between Christmas Island, Cocos (Keeling) Islands and Perth. In underwriting these air services, the Commonwealth provides significant subsidisation of the actual cost of the air services, thereby limiting the cost impacts on individual passengers.
Impact on the Territory of Christmas Island
The Commonwealth believes that exempting international air service operators from paying a Landing Fee for using the Christmas Island Airport will stimulate economic development on Christmas Island by encouraging international visitors to travel directly from northern destinations. This is supported by the fact that there are currently two air service providers seeking to commence regular air service operations from northern destinations to Christmas Island.
The commencement of regular air service operations to northern destinations has the potential to establish business links and trade opportunities previously unavailable
to Christmas Island residents and businesses due to the lack of regular flights. Given the cultural diversity of Christmas Island, with significant Chinese and Malay resident communities, it is expected that social links with family members in northern locations will also be strengthened by access to regular flights.
Consultation
The Department consulted with VAA who provide the existing domestic air service to Christmas Island, as well as with representatives of the two airlines seeking to commence international flights to Christmas Island, those being PT Indonesia Air Asia and Air Timor.
The Department also consulted with identified Commonwealth Agencies.
In addition, when determining the new structure of charges, the Department consulted with Toll Remote Logistics, who currently manage the Christmas Island Airport on behalf of the Commonwealth and the peak industry body, the Australian Airports Association.
The Department also undertook a two week community consultation period which involved the issuing of Community Bulletin (2015/59) seeking feedback on changes to the draft determinations which were advertised on the Department’s website.
At the end of the consultation period, feedback was received from one interested party who sought confirmation that any increase to the Landing Fees would not result in increases to air fares. In addition, this person also sought advice as to whether any increase in the Landing Fees would go to maintenance, repair and upgrade of the airport terminal.
The Department will be preparing a response addressing the issues raised.
Fees and Charges
The following table identifies the changes to the Landing Fees between the 1997 Determination and the proposed Determination for aircraft operations at the Christmas Island Airport.
The 1997 Determination currently provides for three time periods, with these being:
Daylight Operations
0001 – 1100 Coordinated Universal Time (UTC)
UTC is a time standard used worldwide. At any time, the current UTC time is the same as Greenwich Meridian Time. UTC is used to calculate the times in individual time zones worldwide.
Night Operations 1
1101 – 1400 UTC
Night Operations 2
1401 – 0000 UTC
Importantly, the proposed Determination will have only two time periods, with these being:
Daylight Operations
0001 to 1100 UTC
Night Operations
1101 to 0000 UTC
This new Night Operations time period will consolidate the two Night Operations in that it will consolidate the Night Operations of the 1997 Determination (1100 – 1400 UTC and
1401 – 0000) into one Night Operations time period.
The two time periods in the proposed Determination are consistent with standard operating practices of other airports within Australia. The proposed Landing Fees were determined by comparing the fees levied at other Code Four Airports within Western Australia and averaging these charges.
Previous Charges Proposed Charges
- Landing fees per landing for all aircraft arriving in the Territory of Christmas Island, excluding international air services:
• Daylight operations (0001 – 1100 UTC)
1. Aircraft heavier than 20 tonne (MTOW*) $15.00 per tonne $15.00 per tonne
2. Aircraft less than 20 tonne (MTOW) $300.00 per flight $300.00 per flight
• Night Operations (1101 – 0000 UTC)
1. Aircraft heavier than 20 tonne (MTOW) $40.00 per tonne $40.00 per tonne
2. Aircraft less than 20 tonne (MTOW) $900.00 per flight $800.00 per flight
*MTOW – Maximum Take-off Weight
Statement of Compatibility with Human Rights
Prepared in Accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Christmas Island Airport Facilities Determination (No. 1) 2016
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of this Determination is to ensure that the Landing Fees at the Christmas Island Airport are consistent with other Code Four Airports within Western Australia including: Geraldton, Learmonth, Port Hedland; and Kalgoorlie. Airports are coded based upon their field length with the Christmas Island Airport having a field length of over 1800 metres.
This Determination will also exempt international air service operators from paying a Landing Fee for using the Christmas Island Airport.
Other Fees and Charges associated with the use of the Christmas Island Airport are not being included in this Determination.
Human Rights Implications
This Determination does not engage any human rights, and it is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Barry Wayne Haase, Administrator of the Territory of Christmas Island