Our monopolistic economy

Posted in Economics and public policy

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).