EXPLANATORY STATEMENT
Issued by the authority of the Administrator of the Territory of Cocos (Keeling) Islands
Cocos (Keeling) Islands Airport Facilities Determination (No. 1) 2016
Authority
The Administrator of the Territory of Cocos (Keeling) Islands (Cocos (Keeling) Islands) (the Administrator) has made this Determination in accordance with the power granted to him under section 4 of the Utilities and Services Ordinance 1996 (CKI).
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 the Landing Fees at the Cocos (Keeling) Islands 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 Cocos (Keeling) Islands Airport having a field length of over 1800 metres.
Other Fees and Charges associated with the use of the Cocos (Keeling) Islands Airport are not being included in this Determination.
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 UTC) 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 Cocos (Keeling) Islands Airport was last gazetted on 30 January 1997 in the Government Gazette.
Impact on Airport Users
The Department of Infrastructure and Regional Development 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.
Impact on the Territory of Cocos (Keeling) Islands
Under the existing air service contract between the Commonwealth and Virgin Australia Airlines (VAA), the Commonwealth underwrites the provision of regular air services between the Cocos (Keeling) Islands, Christmas Island 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.
Consultation
The Department consulted with VAA who provide the existing domestic air service to the Cocos (Keeling) Islands.
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 Cocos (Keeling) Islands 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 Cocos (Keeling) Islands 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 (1101 – 1400 UTC and
1401 – 0000 UTC) 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
1. Landing fees per landing for all aircraft arriving in the Territory of Cocos (Keeling) Islands:
• 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
Cocos (Keeling) Islands 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 Cocos (Keeling) Islands 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 Cocos (Keeling) Islands Airport having a field length of over 1800 metres.
Other Fees and Charges associated with the use of the Cocos (Keeling) Islands 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 Cocos (Keeling) Islands