Air passengers set to wear runway tax

Brisbane Airport customers may end up paying extra. Source: The Courier-Mail

BRISBANE Airport Corporation says it is preparing to ask the competition watchdog to approve an increase in the passenger landing charge to fund a new parallel runway.

BAC chairman Bill Grant said talks with airlines to help fund the much-needed project were reaching "the end of the line" and the next stop would be the Australian Competition and Consumer Commission.

But the process could take between a year or two, delaying the runway opening beyond 2020 and worsening the congestion that has made Brisbane the worst-performing major airport in the nation.

He said the airlines had repeatedly rejected the alternative of a special $2.50 to $3.50 levy instead of the landing charge.

"The average punter is not going to stop flying to Sydney or Melbourne or Newcastle or wherever for $2.50," Mr Grant said.

"It's a cup of coffee. Airline prices are probably at historically low rates."

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BAC has demanded that Qantas, Virgin and other airlines fund a quarter of the $1.3 billion project cost by paying higher landing charges over the eight years it will take to construct the runway.

But a Qantas spokesman said the airline refused to collect a surcharge on behalf of BAC.

Brisbane Airport boss Bill Grant wants passengers to pay a surcharge on their air tickets to pay for the new runway, but airlines say it won't fly.

"Call it what you will - a levy, a surcharge - it is still airline passengers pre-funding the new runway," the spokesman said.

"Qantas is opposed to pre-funding infrastructure when our passengers won't see the benefits for many, many years."

The Courier-Mail's Brisbane Late Again campaign has focused on the urgent need for a runway following years of delays and broken promises.

Have you been delayed flying into Brisbane airport? Tweet your experience at #BNELATEAGAIN or leave a comment below

Mr Grant said the funding model was the only option because BAC could not afford to build the runway.

Brisbane Airport pulls in more than $1.3 million a day in revenue, including close to $250,000 a day for car parking fees alone.

The airport, which handled 21.5 million passengers last year, reported an operating profit of almost $170 million and paid $50 million in distributions to its shareholders, mostly Australian superannuation and investment funds and the Dutch-owned Amsterdam Airport Schiphol.

"We've been through plenty of alternatives but none of them are palatable. You couldn't borrow the money, simple as that," Mr Grant said.

Mr Grant said BAC canvassed the idea of state or federal governments lending the money or guaranteeing loans: "That would be very helpful but we've spoken to them both and the answer's no, so we've got on with it."

Instead, BAC has tried to convince airlines to add on a surcharge in protracted negotiations.

"We had a strategy and most people thought the airlines would say the sooner you get on with this and build it the better," Mr Grant said. "Instead, it was like a [pass the parcel game at a] six-year-old's birthday party."

Qantas and Virgin both outlined their opposition to pre-funding in submissions to a Productivity Commission two years ago but Mr Grant says airport chiefs believed it was "negotiating bluster".

"BAC was much more confident in those days back in 2010, '11 and '12 that there would be a commercial agreement with the airlines. That proved not to be correct."

Mr Grant said the airlines had also repeatedly rejected a proposed passenger levy during the past 18 months.

The BAC boss said clearly identifying the fee as a runway surcharge on tickets would spare the airlines any customer backlash, and he did not believe the travelling public would object to paying $2.50 or $3.50 more for their fare if they knew it was going towards alleviating the growing congestion and delays.

Last night, 41 per cent of the 60 domestic flights landing at Brisbane Airport during the peak time of 5-8pm were more than 15 minutes late.

The most-delayed flights were JQ889 from Mackay at 70 minutes behind schedule, and TT821 from Sydney at 45 minutes late.

One-third of flights arrived on schedule and 15 per cent were early.

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