Darwin's airport operators hike landing fees to 'more than double' anywhere else in Australia
Darwin International Airport's operators have raised its landing fees by more than 110 per cent. (Facebook: Darwin International Airport)
In short:
A landing fee hike by the operators of Darwin's airport has been described as "an unreasonable cash grab" that will put further pressure on airfare costs to and from the Northern Territory.
Member for Solomon Luke Gosling says the fees will now be by far the highest in Australia.
The Airport Development Group (ADG) has blamed ongoing runway works for their decision.
Darwin's airport has taken on the unenviable title of the most expensive capital city airport in the country, after operators hiked its landing fees by more than 110 per cent.
The fee hike by Darwin's Airport Development Group (ADG), which came into effect on July 1, has already seen charter companies Hardy Aviation and Fly Tiwi raise their passenger airfares in response.
Darwin-based MP and Special Envoy for Northern Australia Luke Gosling said the changes would make the NT's landing fees "more than double anywhere else in the country".
"It's an unacceptable increase, in my view," he told ABC Radio Darwin.
Luke Gosling has referred the operator's decision to raise the landing fees to the Australian Competition and Consumer Commission. (ABC News: Dane Hirst)
"This is an unreasonable cash grab by the ADG … and I've made that clear to them."
Mr Gosling said the ADG's fee hike had been referred to the nation's consumer watchdog, the Australian Competition and Consumer Commission (ACCC).
"I'll be doing what I can with the ACCC [around] this power imbalance between the monopoly ADG, who runs the airport and sets the fees, and smaller operators," he said.
Commercial airline Virgin has previously said that the ADG's plan to raise high landing fees would "put pressure on airfares and will not incentivise airlines to grow services to Darwin".
Mr Gosling said it was more than likely the fee hikes would put upwards pressure on commercial passenger fares.
"Unfortunately, that is the reality of it, that the airlines will seek to pass on some of those costs, which makes it even harder for us," he said.
ADG blames ongoing runway works
In a statement, the ADG blamed ongoing runway works for having to raise their fees.
Darwin's commercial international airport operates under a "joint user deed" with the Australian Defence Department, which has been driving the airport's runway works.
The ADG says ongoing runway works have had a significant impact on the airport's operating costs. (Supplied: Darwin International Airport)
"The current adjustment is necessary, driven by the [runway works] which has significantly impacted [the airport's] operating costs," it said in a statement.
"This is compounded by a decline in aeronautical activity and broader increases in construction costs driven by inflation.
"ADG acknowledges the impact this adjustment may have on the [general aviation] community and is actively engaging with both the Northern Territory and Australian governments to explore mechanisms to support the sector."
The ADG has previously said the runway works were also responsible for a downturn in flights, after negotiations to get more AirAsia flights into the Northern Territory fell over.
Since that period, the airport has managed to attract more flights from AirAsia to Malaysia, however flights between Darwin and other cities within Australia remain scarce and expensive.
Many flights between Darwin and other Australian capital cities only fly in the middle of the night. (ABC News: Michael Franchi)
At present, there are no daily daytime flights between Darwin and Melbourne, and flights to many other capital cities cost high rates and fly mainly in the middle of the night.
The ADG said its fee hike was in line with ACCC and Productivity Commission principles.
In a statement, the ACCC said it was aware "some airlines have concerns about increases in aeronautical charges at Darwin Airport" but would not comment on whether it was investigating the matter.