Qantas, Virgin dealt massive defeat in battle with airports

Australia's biggest airlines have suffered a resounding defeat in their campaign for tighter regulation of airports with the Productivity Commission finding the airports are not misusing their market power. In a blow to Qantas and Virgin Australia, the federal govt's advisory body said in a final report on airport regulation released Tuesday that a new independent arbitrator was not necessary. The creation of the body was one of the key demands from the airlines who wanted it to rule on disputes between airports and carriers. The long-running inquiry heard airline claims that Sydney, Melbourne, Brisbane and Perth airports were using their monopoly positions to demand unfair prices to use their runways and terminals, citing access fees that are among some of the highest in the world. <br/>