Qantas exposes monopoly airport price gouging

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By Leith van Onselen

After the Australian Airports Association (AAA) vigorously defended its ability to gouge airlines through fees to the Productivity Commission’s (PC) inquiry into Australian airports, Qantas has stepped-up its attack, presenting evidence showing the extent of the price gouging. From The AFR:

Qantas says costs, excluding fuel, have fallen by 4 per cent in real terms since 2014-15, while charges paid to airports have grown 6.5 per cent above inflation. The report also noted that in the past 10 years, Australia’s major airports enjoyed a 25 per cent increase in revenue per passenger in real terms while airfares have decreased by 40 per cent.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.