By Peter Martin
AUSTRALIA'S competition regulator says Melbourne Airport's parking fees are too high and says it suspects price gouging.
The Competition and Consumer Commission has told Assistant Treasurer Chris Bowen that Melbourne Airport's parking fees jumped 50 per cent in the two years to 2007-08, with the price of a two-hour stay jumping from $12 to $18.
Its report, prepared at the Assistant Treasurer's direction, finds that total revenue per car park space is "well above expenses including depreciation".
Melbourne Airport makes more of its revenue from parking fees than any other airport, with 21 per cent of its revenue from car parks, compared with 7 per cent for Sydney Airport.
The commission says it believes the prices charged may reflect not only "locational rents", justified by proximity to the airport, but also "monopoly rents", gained by the airport operators using their market position to push prices even higher.
It is concerned that airport operators may be using their regulatory role to in effect direct traffic toward their car parks, noting that they "are in a position to limit vehicle standing times — especially for dropping off and picking up passengers — in excess of the necessary security provisions".
"An airport exercising market power in car parking would have discretion to increase charges, which would be expected to result in the persistence of higher profits over time. Although not definitive by any means, the monitoring results are consistent with this expectation," the report said.
It noted that Melbourne Airport opened an extra 2500 long-term parking bays in December 2007 and is due to open a $65 million extension of its multi-level car park in June, but found the overall growth in the number of short-term spaces had been less than the growth rate in people using the airport.
Qantas yesterday backed the commission, describing the fees as "excessive", not only for travellers but also for its own staff. It asked the regulator to extend its monitoring to staff parking fees.
"Airports all around the country have been raising fees aggressively," said spokesman Joe Aston. "They operate outside business hours, and they can't run without staff. They are taxing the people they need."
The report finds that satisfaction with the overall standard of airport service dropped in 2007-08, with Melbourne remaining the fourth-rated Australian airport behind Brisbane, Adelaide and Perth.
Mr Bowen said he noted the ACCC's concern about parking charges and said he would "reflect on what further action might be appropriate".
He directed the commission to continue to monitor the performance of the five major privatised airports for another year.
Sign up for the Traveller Deals newsletter
Get exclusive travel deals delivered straight to your inbox. Sign up now.