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  • Qantas pleads with airports to reduce charges

    http://procurement-online.com/news/13143

    The head of Qantas has called on Australian airports to reduce charges and help keep fares low in order to stimulate traffic in the current economic climate. None of the major airports have agreed to the suggested cost cutting measure, The Australian reported. Last week, Alan Joyce, CEO of Qantas said in Melbourne to the Committee for Economic Development in Australia, that airports should reduce the A$700 million (US$560.54 million) annual fees and charges the airline currently pays.
    According to the daily, Joyce said fare levels and capacity might not be sustainable if airports do not review their current rates.
    Although some airports were helping the airline reduce its cost of operations, none have agreed to lower charges. Worse, some airports could increase leasing and car parking charges, said Joyce.
    Meanwhile, international airports in Germany, Malaysia, Singapore and Hong Kong have voluntarily reduced charges to help airlines stimulate demand in these difficult times, Joyce said.
    Three major airports have since responded to Joyce's claim that airports are overcharging.
    Koen Rooijmans, CEO of Brisbane Airport Corporation said he was surprised and disappointed by Joyce's "selective and populist" claims.
    According to the Australian, Rooijmans said it was inaccurate to use operating profit as a percentage of revenue as the key measure of airport profitability, because this excluded the cost of finance.
    "Airports account for a small percentage of an airline's ticket price and if Qantas wishes to engage in low-cost warfare in the marketplace, that is their business... It is not the role of airports to help airlines continue this unsustainable practice," Rooijmans said.
    Sydney Airport Corporation has also rejected Joyce's comments. The organisation said fees charged are small when compared with the other taxes charges and fuel levies included in an airfare, The Australian reported.

    On the other hand, Melbourne airport is in discussions with Qantas.
    "We have the lowest major airport charges in Australia, with Sydney and Brisbane both being over 50% more expensive," Emma Stenhouse spokesperson of Melbourne airport said.

  • #2
    They expect people to give way to help in keeping their profitable and yet they are open to idea of sharing air route (AU to US) with SQ.

    This is what I call selfish.

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    • #3
      Originally posted by khellek View Post
      They expect people to give way to help in keeping their profitable and yet they are open to idea of sharing air route (AU to US) with SQ.

      This is what I call selfish.
      True but the airlines have a point. When the rest of the travel industry is being hit hard by recession (almost none earning a profit at the moment let alone covering cost of capital), why shouldn't airport companies also share the pain?
      ..

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      • #4
        Originally posted by Kiwi View Post
        True but the airlines have a point. When the rest of the travel industry is being hit hard by recession (almost none earning a profit at the moment let alone covering cost of capital), why shouldn't airport companies also share the pain?
        They should, and I have always complained why the airport tax (to consumers) in Singapore and China are so high, when compared to countries like HK.

        Qantas does actually have a point but I do hope they will also do the same when considering opening air routes (eg Syd to US) too.

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