reprinted from:

Airline ticket charges under scrutiny 

By Bruce McDougall
Copyright 2001 Nationwide News Pty Limited
Article date: November 8, 2001
 

Taxes, levies and charges being imposed on air tickets will be investigated by the Australian Competition and Consumer Commission.

As well as departure tax, air travellers are now faced with levies for war insurance, service, the Ansett collapse, noise and safety and security. On top of those there is the GST.

A number of complaints had been made to the ACCC, spokesman John Martin said yesterday.

"We are very concerned that people are aware of these charges when they are quoted a price for their ticket," he said. "It's come on to our screen and we're looking at it . . . if there is any breach of the Trade Practices Act."

Tourism Task Force head Chris Brown said Australia needed a serious inquiry into the level of taxes.

"We have to stop the rot, we've reached breaking point," he said yesterday.

"It is quite ludicrous that the cost of an air fare can be less than the sum total of all the taxes and charges. We desperately need to make the cost of air travel as cheap as possible."

Australian Federation of Travel Agents chief executive Mike Hatton said taxes had "got out of hand since the privatisation of airports".

"It's putting huge pressure on the industry - if we keep gouging people like this they won't come here," he said.

In Sydney it costs about $100 in taxes to go through the airport, including a new "passenger service charge" of $17.55 each way.
 

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