Our monopolistic economy
Posted by Nicholas Gruen on Saturday, August 28, 2010
Here’s the breakdown of a Canb-Melb flight I just booked on the to be avoided at (almost) any cost Tiger Airlines.
| Ticket Fare AU | 12.85 | 23% |
| Airport Charges, AU | 31.65 | 56% |
| GST (if applicable) AU | 4.45 | 8% |
| Service Fees inclusive of Tax AU | 7.2 | 13% |
| Total Cost AU | 56.15 | 100% |
Now ‘airport charges’ are not all airport charges. Some of it is presumably tax. The ‘service fees’ are for a Mastercard payment (which the Tiger website told me would cost nothing – but the incompetence of Tiger is only an aside here, not my point). But it’s quite a table nevertheless. The service provider gets 23%, the government gets 10% (allowing for tax on the service fees) and at least on the face of it the rest goes to the monopolies running our airport and financial services (though Tiger takes a juicy cut of the financial services cost).
This entry was posted on Saturday, August 28th, 2010 at 10:16 AM and filed under Economics and public policy.
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