The Australian Competition and Consumer Commission (ACCC) has rejected Sydney Airport's bid to raise its regional aeronautical fees by claiming that the proposed 2.9% price hike could not be justified.

The airport had wanted to increase fees for services such as bag screening, passenger security and check-in for regional airlines travelling within New South Wales, but has been left “disappointed” by the decision.

Sydney Airport CEO, Russell Balding, insists that the proposed increase was fair as it would have been the first rise in regional fees since 2001, despite the consumer price index increasing by almost 30% over the last nine years.

“The failure of the regulatory system to deliver a fee increase after 10 years is disappointing and difficult to comprehend, particularly given that the increase sought was so far below the CPI,” says Balding.