The Australian Competition and Consumer Commission (ACCC) has publicly released the draft price notification submitted by Airservices Australia proposing an increase to the prices it charges airlines for its services.
The submission, made in April, followed extensive aviation industry engagement undertaken in 2025 on Airservices’ proposed pricing arrangements, which will enable investment in critical infrastructure to support the growth of Australia’s aviation sector.
The ACCC will now seek stakeholder feedback on the submission, which proposes a series of increases over the next five years, and represents the first significant step in a reset of Airservices’ asset base, designed to deliver resilient air traffic management and aviation rescue fire fighting (ARFF) capability to meet rising demand and integrate new technologies.
As Australia’s air navigation service provider, Airservices has delivered a 24% price reduction in real terms (i.e., adjusted for inflation) since 2015-16 leveraging aging assets. Under the draft price notification, Airservices is proposing to increase its prices by a weighted average 12% in real terms annually over the five-year pricing period.
The proposed annual increases are equivalent to around $1.50 per passenger per one-way airfare (on average), with a lower impact on regional airfares of approximately $1 per passenger (assuming the full price increase is passed onto passengers).
If approved, the price increase would enhance Airservices’ ability to deliver major capital investments such as OneSKY; air traffic management and ARFF services at Western Sydney International Airport, and our Enterprise Network Modernisation Program, which will deliver a next-generation network and telecommunications platform to support service expansion.
It would also support the rising costs of providing Terminal Navigation, Enroute Services and ARFF services at Australia’s airports.
Airservices Chief Executive Officer Rob Sharp said the organisation needed to invest in its equipment and its people to keep Australia’s airspace safe via key capability-building programs, which would also deliver significant efficiency benefits to the industry including substantial fuel use and operational savings which will flow directly to the airlines’ bottom lines.
“The cost of providing our air traffic management services, Aviation Rescue Fire Fighting services and enabling services has increased considerably since our last long-term price agreement which ended in 2015-16,” Mr Sharp said.
“Aviation in Australia is undergoing significant transformation, with investment underway to support an expected doubling of domestic and international passenger numbers by 2050. Airports are investing around $40 billion in infrastructure over the next decade, while airlines are undertaking major fleet renewal programs.
“Airservices is supporting this growth by delivering critical aviation transformation programs. We have a vital role to play in ensuring airports, airlines, and the travelling public realise the benefits of this investment.
“Aviation is a key enabler of Australia’s economic growth with Airservices playing a central role. We connect people with their world safely – linking family and friends, generating economic activity, creating jobs and facilitating trade and tourism.”
About Airservices
Airservices Australia is a government-owned organisation responsible for safely and efficiently managing air traffic in 11 per cent of the world’s airspace, as well as the provision of aviation rescue fire fighting services at Australia’s busiest airports. We are regulated by the Civil Aviation Safety Authority and work closely with our customers and industry to support the long-term growth of the aviation industry.
