[Peetwo]

ASA in the real world??- God forbid!

Let Airservices Australia feel heat of competition: Maurice Newman  

• by: ANNABEL HEPWORTH
  
• From: The Australian
  
• August 22, 2015 12:00AM
  

National Business Correspondent
Sydney

Tony Abbott’s top business ­adviser says the government should consider exposing key functions of Airservices Australia to compet­ition. Maurice Newman, chairman of the Prime Minister’s Business ­Advisory Council and a former ASX and ABC chairman, said greater competition was “an area that governments should consider very seriously”.  

He noted that Britain’s air traffic control was now operated via a public-private partnership in which the government owns a 49 per cent stake. “If anything could be done to free up or make more efficient Australia’s transportation, be it in the air or coastal shipping, it’s something to be ­considered and, if found to be plausible or reasonable, be implemented,” Mr Newman said.

“I think anything which leads to greater efficiency in transport­ation, anything that makes us more competitive internationally, has got to be looked at.”

Investment bankers have pitched the idea, while businessman and aviator Dick Smith told a Senate committee this week that Airservices’ functions of rescue, firefighting and air traffic control should be opened up to competition. Airservices is a government-owned monopoly provider of air traffic control and aviation firefighting and rescue...

  
"..Warren Truss said the government had no plans to privatise Airservices and noted that its primary function was air safety. Rescue and firefighting staff “need to be able to respond within time-critical deadlines to safety incidents”, his spokesman said.."

Umm...Minister once again I don't think your Mandarin, minders & minions are doing you any favours..

Follow up to Maurice Newman's opinion, today there is this from off the Yaffa...

Regional Association backs call for Private ATC
25 Aug 2015

The Regional Aviation Association of Australia (RAAA) has backed calls to open up Australia's air traffic control to competition from private companies.

In a statement released yesterday, the RAAA said they fully supported Maurice Newman, chairman of the Prime Minister's Business Advisory Council in his call to open up key functions of Airservices Australia to competition.

“Airservices Australia is a government monopoly service provider in serious need of an independent review”, said RAAA Chair Jim Davis. "There is no reason why functions such as control towers and airfield fire-fighting services should not be opened up to competition.

“If Airservices Australia was opened up to private sector competition, or even private/public partnerships, there could be more efficient air traffic control and significant public savings, with no decrease in safety.”

Currently, Airservices Australia has a monopoly as the only entity CASA has licensed to provide air traffic and fire-fighting services. In many other countries, including the UK, services are open to tenders from private companies.

"Monopolies inevitably take advantage of their market position to the detriment of their customers," the RAAA statement concludes. "Airservices Australia is no different and should be exposed to the mitigating influences of the market."

In November 1999, then Minister for Transport and Regional Services John Anderson promised to phase in competition for air traffic services, a policy that seems to have since been abandoned by successive federal Coalition governments.

Estimates in the aviation industry suggest that the cost of providing air traffic services could be halved if the system was open to competition.

Here is the full RAAA Media Release:

MEDIA RELEASE

Opening up Airservices Australia

24 August 2015

The RAAA fully supports Maurice Newman, the federal government’s most senior business adviser, with his call to open up key functions of Airservices Australia to competition.

Similar moves in other countries have proven that government monopolies can be improved significantly when they are subject to the market place forces. Recent Senate Hearings into a range of worrying tender probity issues and the high turnover of senior executives have also raised concern across the regional aviation industry.

“Airservices Australia is a government monopoly service provider in serious need of an independent review”, said RAAA Chair Jim Davis.

“There is no reason why functions such as control towers and airfield fire-fighting services should not be opened up to competition.”

He concluded “If Airservices Australia was opened up to private sector competition, or even private/public partnerships, there could be more efficient air traffic control and significant public savings, with no decrease in safety.”

The RAAA also notes the significant turmoil within senior leadership ranks of Airservices Australia over recent weeks. This has raised questions across industry as whether the $1.6b OneSky project, that will replace the current air traffic system, is being managed optimally.

It must not be forgotten that every dollar Airservices Australia receives comes directly from industry, including a guaranteed 10% dividend paid to the Government. When industry sees exorbitant bonuses being paid to senior executives at the same time that a senate hearing is questioning the probity of the OneSky project, serious questions must be asked.

Monopolies inevitably take advantage of their market position to the detriment of their customers. Airservices Australia is no different and should be exposed to the mitigating influences of the market.

Media Enquiries:

Paul Tyrrell, CEO

Mob: 0438 114 372

Strewth the pile in the Miniscule's  aviation in-tray must quite impressive by now??---


MTF...P2

Ps Passing strange that Hitch's take on the RAAA MR is minus any reference to OneSKY or the Senate Hearings