Profitable Parking

By Graeme Pattison

According to the Sydney Morning Herald "Australia's biggest airports have managed to squeeze out record profits despite a dip in passenger growth, with the competition watchdog suggesting they could be benefiting from a monopoly. Sydney Airport's profits rose 4 per cent to $404 million while Melbourne jumped by 11 per cent to $194 million. Sydney's return on aeronautical assets was the highest since monitoring began, rising to 12.5 per cent."

The profits from car parking in the 2018/2019 financial year were: 

·       Perth Airport $35 million or $20 per vehicle

·       Brisbane Airport $72 million or $26 per vehicle

·       Melbourne Airport $77 million or $24 per vehicle and

·       Sydney Airport $91 million or $22 per vehicle

The Sydney parking profit margin was 68% while Melbourne was the lowest at 53%. According to the ACCC's Airport Monitoring Report and the source of these figures, "airports hold market power with respect to car parking because in most cases they are the sole provider of these services on airport land, especially in relation to at-terminal parking". Motorists parking away from the terminals paid 60% less than those right at the terminals.