Airlines have strongly opposed a proposal by Airservices Australia to more than double aviation fees over the next five years, arguing that service improvements and resolution of staffing issues should precede any increase in charges. The Australian Competition & Consumer Commission (ACCC) is currently reviewing the plan, which would see a 103 percent rise in fees to fund a $4 billion capital investment program.

Under the proposal, airlines would face annual increases of 12 to 18 percent in air traffic control charges, costs that are expected to be passed on to passengers. According to Qantas, the proposed revision could increase air navigation charges from $10 per passenger in 2026 to $20 by 2031. Nicole Perry, Qantas’ head of special projects, expressed concern that the significant rise would place an undue financial burden on travelers. She also questioned Airservices’ efficiency, asserting that improved spending practices should be demonstrated before airlines are required to absorb higher fees.

Virgin Australia’s Chief Executive Officer Dave Emerson echoed these reservations, urging the ACCC to thoroughly scrutinize the justification for the fee hike. Emirates also voiced critical concerns, referencing a series of recent safety-related incidents at Sydney Airport that had heightened industry apprehension about Airservices’ operational performance. The carrier highlighted Australia’s status as a high-cost, long-haul aviation market and warned that increased government-mandated fees could further pressure airline costs and potentially drive up passenger fares, ultimately affecting the country’s international connectivity and market competitiveness.

The Board of Airline Representatives of Australia, which represents over 40 foreign carriers, expressed similar fears about the potential impact on international sector growth. Airlines for Australia and New Zealand (A4ANZ) pointed to the cumulative strain on the industry, citing rising fuel prices, regulatory burdens, and government charges as existing challenges exacerbated by the proposed fee increase. A4ANZ Chairman Graeme Samuel questioned the prudence and timing of Airservices’ planned expenditure, noting ongoing service disruptions and capacity constraints. He called on the ACCC to closely examine the proposal and exclude any costs that cannot be justified as efficient.

Airport operators also weighed in, with Canberra and Adelaide Airports voicing concerns over the scale of the increases, with some charges projected to climb by as much as 160 percent by 2031. Canberra Airport emphasized the broader economic consequences, warning that higher fares could reduce travel demand and negatively affect regional communities reliant on tourism spending. Melbourne Airport offered measured support for the plan, advocating for funding certainty to enable Airservices to deliver on agreed projects and services.

Airservices acknowledged that its pricing approach did not follow a strict formula but argued that its methodology was consistent with regulatory practices in other sectors like electricity distribution. The ACCC has yet to announce a timeline for its decision and continues to review industry submissions.

Meanwhile, the Australian Transport Safety Bureau (ATSB) is investigating six separate taxiing incidents at Sydney Airport in which aircraft came dangerously close to collision. Airlines have noted that pilots were operating under air traffic controllers’ instructions at the time. The ATSB’s inquiry includes an examination of staffing levels and fatigue management practices at the often-troubled Sydney air traffic control tower.