Airlines for Australia and New Zealand (A4ANZ) is calling on the Australian Government to introduce stronger regulation to rein in escalating airport charges that are pushing airfares higher for Australian travellers.
Australia’s major airports – Sydney, Melbourne, Brisbane and Perth – are monopolies with significant market power.
The weekend’s ACCC Report to the Senate confirms that monitoring alone is insufficient to act as a constraint on monopolistic behaviour.
The ACCC warns that monitoring and reporting of airport prices, costs, profits and service quality do not amount to an effective constraint on the major airports from exercising their market power.
With airports planning more than $44 billion in capital investments, passenger charges are set to rise substantially, inevitably feeding into higher airfares and cargo prices.
Consumers deserve transparency and protection from monopoly airports using their market power. A4ANZ strongly supports the ACCC’s recommendation for a commercial arbitration framework (negotiate-arbitrate) to ensure fair and efficient commercial negotiations between monopoly airports and airlines.
Commercial arbitration frameworks are common in other industries and cover all significant agreements. Arbitration would incentivise airports to negotiate in good faith and prevent excessive charges that harm consumers and the broader economy.
Recent developments in New Zealand reinforce the need for reform. The NZ High Court’s decision on 19 December 2025 to dismiss airport appeals against the Commerce Commission’s pricing framework confirms the importance of robust regulation.
The NZ Commerce Commission recognised the importance of safeguarding consumers from excessive airport charges.
Given the similarities between Australia and New Zealand’s aviation markets – both characterised by privately run airports and limited regulatory oversight – this ruling provides a clear signal for Australian policymakers.
Higher airport charges lead to higher airfares. Without reform, Australian consumers will continue to pay the price. It’s time for action to introduce a negotiate-arbitrate regime and restore balance to the aviation sector.
Professor Samuel is the former Chair of the ACCC and President of the National Competition Council.
