Ripped

From July 1 Sydney Airport passengers exiting via taxis will pay $2.50 for the privilege, a 25% toll increase. Even accounting for the first toll rise since its 2004 inception, that's equivalent to an annual inflation rate of 8%.

The airport says the $2 fee has led to improvements for drivers, such as a larger taxi holding area, taxi rank supervisors, chilled water dispensers and a meeting room. Many of these improvements would have continuing costs for maintenance and staffing, Mr Samaras said.

The toll increase is,

...expected to swell the Macquarie-controlled airport's coffers an extra $1.5 million a year.

Yet,

Sydney Airport said the (daily taxi) figure was 8000. This would mean the airport would still make $7.3 million each year from the new surcharge. This does not include the $10.50 levied on coaches from July 1, $3 for hire cars and $3.50 for mini-buses.

Something doesn't add-up here..?

UPDATE : Cablog readers have identified the error regarding the reported $7.3m. Yet last night the SMH published comment from a union official who perpetuates the error,

He said the 50 cent increase would generate an additional $7.3 million a year for Sydney Airport, based on previous media reports.

Comments

[Anthony]

You're right - 8000 taxis per day times an extra 25c = $2000 per day. $2k times 365 days = $730,000.

Maybe the Lancet compiled those figures?

[Anthony]

Duh, 25% - not 25c. At 50c the new surcharge will deliver the $1.5M as Mac says.

The SMH must've worked it out on the full $2.50 toll.

[Juffy]

Seems ok to me -

The $1.5m figure comes from 50c (not 25c, Anthony :) ) * 8000 = $4000/day = $1.46m/year.

The $7.3m figure comes from $2.50 * 8000 = $20000/day = $7.3m/year.

The second quote is badly worded - it appears to say they'd make $7.3m from the _new_ surcharge (implying the extra 50c) when it's really from the total surcharge after the increase.

[AG Canberra]

That was one of the first things the Snow's did when they bought the Canberra airport - a $2.00 charge for pick ups. The taxi's threatened to boycot the airport but in the end they just passed it onto the passenger. And with the GST 9the fee went up to 2.20)the Gov now also gets their 20c for each pick up - on top of the GST on the fare....

Does any country do set fares from A to B in cabs like chauffeured hire cars do in most capital cities?

[steve at the pub]

Is this the beginning of the attrition Adrian's previous support for Macquarie Bank?

[rob in boston]

AG, I know that the cabs running to and from Logan airport in Boston, Massachusetts have recently started charging set fares from certain locations in the city. For example, it's a US$25 set fare from some parts of Cambrige, MA closer to the airport (6.5km), and US$65 from locations near Harvard University (9km). When there is no traffic it seems exorbitant as I've done the $25 ride in 7 minutes, but at rush hour it can definitely save money.

[adrian]

Steve, you refer to my tacit support last year for Macquarie's entry into the taxi industry, with their promise of a better service for long-suffering wheelchair passengers.

Subsequently, drivers were less than enthused at Lime Taxi's offering (surprisingly inadequate from a successful outfit like MacBank) and it would appear they are struggling to achieve their original goals.

[Juffy]

"Yet last night the SMH published comment from a union official who perpetuates the error"

...because pulling out a calculator for 10 seconds to check the figures rather than rely on a badly worded article would interfere with his production of hot air?

So now we've got three, possibly four, stupid people misinforming the public -

* The guy who wrote the press release, who probably worded it badly,
* The original reporter, who regurgitated it without checking,
* The union official, who didn't check anything before going into bombast mode, and
* The second reporter, who didn't bother to check if the union official was correct.

But remember kids, you can believe everything you read in the newspaper...

[David Crawford]

AG Canberra,

Washington, DC, uses the zone system. But that applies only inside the city limits of the District. Out in the suburban counties in Maryland and Virginia they use meters.

http://dcliving.com/washington_dc_living/000055.html

[Kevin Cox]

If the money is meant to improve cab facilities and because it is a large amount of money why not have a small board administer the money. This could be say four people - someone from the airport, someone from the general public, someone from the airlines and someone from the cab drivers. The people on the board would be elected by their different constituents. Anyone who is a cab driver, from management of the airport, from the general public, can vote for their candidate if they register. This would be simple and cheap to implement.

[CanberraCabbie]

The fee to use the cabyard at Canberra airport is only $2.00, which is passed on to the customer, who pays the GST of 18c.

Now that I've begun driving Silver Service, I park in the general carpark, which costs me $1.50 while I go meet the passenger inside the terminal. I can add that onto the fare, but I generally don't bother.

[James's Airport]

Once again the consumer is being ripped off again. I don't mind paying a fee if the service is going to work. I'm not wrapped in confidence that the cab service at Sydney Airport is really working.