The ACCC is seeking feedback from the aviation industry and other interested parties on Airservices Australia's draft proposal to increase the prices it charges airlines for:
- enroute navigation
- terminal navigation
- aviation rescue and firefighting (ARFF) services.
Airservices Australia has proposed annual price increases between the 2026-27 (FY27) and 2030-31 (FY31) financial years, which equates to an average weighted annual price increase of 15.2% (12.3% in real terms). Collectively, these would raise the nominal weighted average price for these service lines by 103.2% (or 78.4% in real terms).
The proposed annual price increases are outlined in the following table.
| Service | FY27 | FY28 | FY29 | FY30 | FY31 | Cumulative total |
|---|---|---|---|---|---|---|
| Enroute navigation | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% | 88.6% |
| Terminal navigation | 12.6% | 12.6% | 12.6% | 12.6% | 12.6% | 81.3% |
| ARFF | 22.9% | 22.9% | 22.9% | 23.0% | 23.0% | 180.8% |
| Weighted average (nominal) | 14.9% | 15.1% | 15.3% | 15.4% | 15.5% | 103.2% |
Source: Calculated from Airservices Australia, Attachment 11d - Pricing model, April 2026.
Airservices Australia stated its proposed price increases are required to support the modernisation and expansion of its capabilities, given its forecast growth of the aviation industry. This includes funding a significant capital investment program.
According to figures provided by Airservices Australia, airlines operating major city domestic routes currently incur an average cost of approximately $8 per passenger (real 2026-27 dollars) for Airservices Australia's services. Under the proposed price change, this per passenger cost would increase to approximately $15 per passenger by 2030-31 (real 2026-27 dollars).
For international flights, the average cost per passenger would increase from approximately $13 to approximately $23 by 2030-31 (real 2026-27 dollars).
The issues paper and Airservices Australia's draft price notification are available at: Airservices Australia 2026 price notification
Submissions are due by 25 September 2026.
The ACCC expects to receive more information from Airservices on its cost allocation methodology and calculation of price impacts material. We will advise stakeholders when this information is published and any potential implications it has on the consultation process, including submission timeframes.
Background
Airservices Australia is a government-owned organisation and the monopoly provider of air traffic control services in Australia. It provides:
- Terminal navigation - air traffic control services provided to aircraft arriving and departing an airport.
- Enroute navigation - air traffic control services provided to aircraft travelling through Australian airspace but not within terminal navigation range.
- Aviation rescue and firefighting - emergency rescue and firefighting services provided at an airport.
These services are declared under the Competition and Consumer (Airservices Australia Prices Surveillance) Declaration. Airservices Australia must notify the ACCC of proposed increases to prices charged for these services.
The ACCC is required to assess the proposed price increase in accordance with the Competition and Consumer Act 2010 and then notify Airservices Australia on whether it objects to the proposal. The ACCC does not have the role of approving the proposed price increase. This role lies with the Minister.
The last price notification from Airservices Australia considered by the ACCC was in 2023. This concerned a 6% weighted price increase implemented in August 2025.
While the ACCC did not oppose this increase, it recommended in its October 2024 decision that Airservices Australia engage in more robust stakeholder consultation and set more robust and transparent performance metrics.
