October 2024 Airservices Australia Price Notification

Overview

The Competition and Consumer Act 2010 was enacted to address the problem of anti-competitive practices and to protect consumers from unfair trading practices. In October 2024, the Australian Competition and Consumer Commission (ACCC) received a locality notice from Airservices Australia under subsection 95Z(5) of the CCA, proposing price increases for its Enroute, Terminal Navigation, and Aviation Rescue and Fire Fighting services. Pursuant to section 95ZB of the CCA, the ACCC was required to consider the locality notice within 21 days, with the option to extend this period if agreed upon by the notifying party. On 16 October 2024, the ACCC decided not to object to the proposed prices and communicated this decision to Airservices Australia. The reasons for the ACCC's decision are available on the ACCC's website and are recorded in the register of price notifications as required by section 95ZC of the CCA. The overarching policy objective of the CCA is to promote fair competition and protect consumers, ensuring that price increases do not unfairly burden consumers or stifle competition within the aviation industry.

Scope and Application

The Competition and Consumer Act 2010 applies to Airservices Australia, a Commonwealth entity responsible for providing air navigation services in Australia. Specifically, Part VIIA, Division 4, Subsection 95ZC(3) pertains to the notification of price changes for certain services provided by Airservices Australia, including Enroute, Terminal Navigation, and Aviation Rescue & Fire Fighting services. This application extends to any price changes proposed by Airservices Australia under the authority of subsection 95Z(5) of the CCA. The ACCC's jurisdiction is invoked upon receipt of a locality notice, as it must then consider the proposed price increases within 21 days, or an extended period if agreed upon by both parties. The ACCC can choose to object to the proposed prices, object to a lower price, or not object at all. In this instance, the ACCC decided not to object to the notified prices, and communicated its decision to Airservices Australia, with the reasons for this decision published on the ACCC’s website and included in the register of price notifications.

Key Provisions

The primary sections relevant to this notification are sections 95Z(5), 95ZB, and 95ZC(3) of the Competition and Consumer Act 2010 (Cth) (CCA). Section 95Z(5) requires Airservices Australia to notify the Australian Competition and Consumer Commission (ACCC) of proposed price increases for specified services, in this case, Enroute, Terminal Navigation, and Aviation Rescue & Fire Fighting services. Section 95ZB outlines the ACCC's role in considering the notification, providing a 21-day window to either object to the proposed price increase or accept a reduced price. Section 95ZC(3) mandates the publication of the reasons for the ACCC's decision and the inclusion of these in the register of price notifications. The Act imposes specific obligations on Airservices Australia to notify the ACCC of any proposed price increases for the aforementioned services. Once notified, the ACCC is required to review the proposal within 21 days and communicate its decision to Airservices Australia. If the ACCC decides not to object, it must provide a notice to Airservices Australia, which includes the reasons for its decision, as mandated by section 95Z(6)(b) of the CCA. Additionally, the ACCC must publish the reasons for its decision on its website and include them in the register of price notifications, as required by section 95ZC of the CCA. There are no explicit offences or penalties outlined in the sections of the CCA referenced in the notification. The primary consequence for non-compliance would be the ACCC's potential objection to the proposed price increases. In this instance, the ACCC chose not to object to the proposed prices, indicating that the increases were deemed acceptable under the circumstances. However, if the ACCC were to object and the price increase proceeded without resolution, it could lead to further scrutiny or legal action, although these specific outcomes are not detailed in the provided sections of the Act.