BARA sets out 2013 aviation challenges

BARA sets out 2013 aviation challenges
By admin

International airlines operating in Australia will continue to feel the burden of "significant cost pressures" in 2013, according to an industry body.

In its February newsletter, the Board of Airline Representatives of Australia (BARA) identified the "greatest threat" to efficient airline operations on the east coast as the lack of effective competition in the supply of jet fuel, which continues to drive up the persistently high cost of oil.

The organisation referred to an acknowledgement of the situation at Sydney Airport by the National Competition Council, and suggested similar jet fuel infrastructure ownership arrangements at other Australian airports meant they were also experiencing a lack of competitive fuel supply.

"Airlines operating in Australia will continue to pay prices for jet fuel that are, almost certainly, higher than they would be if the market was more competitive," it said.

Meanwhile, it pointed to rising aeronautical charges as another challenge with charges at Perth and Melbourne airports set to increase sharply as a result of major capital programs by the operators of both ports.

"Cost pressures at these airports will continue to increase in the future with both airport operators signalling that they will be planning for the construction of new runways within the next decade," BARA said.

Meanwhile, enhancement programs at both Brisbane and Sydney airports will also see charges climb at a "brisk pace".

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