26 September 2008

Darwin airport authorities reject Tiger fees claim

In a report in The Australian, Darwin International Airport has hit back at claims by Tiger Airways that it is abandoning the Northern Territory capital because of high airport fees.

Tiger is due to fly its last service between Singapore and Darwin on October 25 and this week again blamed its decision on high airport charges and unprecedented capacity increases by the Qantas Group.

"Unfortunately, due to the level of airport charges and the blatant dumping of additional capacity by Qantas/Jetstar, we were left with little choice but to cease flying to Darwin," Tiger chief operating officer Steve Burns said.

Mr Burns also said the airline would return if the airport woke up "to the benefits of competition by reducing airport charges".

But Northern Territory Airports chief executive Ian Kew said this week that landing and terminal costs for Tiger in Darwin had been fixed, with an agreed CPI increase of 3 per cent per year.

"Darwin International Airport refutes claims that suggest that it has substantially increased airport charges in recent years," Mr Kew said. "Tiger Airways was well aware of our forward-looking landing and terminal charges before they commenced services."

He said higher charges were "due to new security measures mandated by the federal Government and these costs are outside the control of the DIA".

Jetstar also took umbrage at the Tiger claims it was dumping capacity in Darwin.

"Jetstar has a sustainable business model," Jetstar spokesman Simon Westaway said. "We are developing a hub out of Darwin, which is well documented."

A Report by The Mole