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The design of light-handed regulation of airports: Lessons from experience in Australia and New Zealand

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  • Arblaster, Margaret

Abstract

The difficulties experienced with traditional forms of economic regulation of airports involving direct control of prices have led to an interest in light-handed regulatory frameworks. Experience with light-handed regulation of airports is primarily confined to Australia and New Zealand. The paper examines the design features of light-handed regulation in Australia and New Zealand in relation to the stated objectives associated with the introduction of light-handed regulation. The paper identifies important aspects associated with the design of light-handed regulation including the incorporation of a credible threat of stronger regulation and the characteristics of this, and an apparent trade-off in objectives achieved with different approaches to light-handed regulation.

Suggested Citation

  • Arblaster, Margaret, 2014. "The design of light-handed regulation of airports: Lessons from experience in Australia and New Zealand," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 27-35.
    • Handle: RePEc:eee:jaitra:v:38:y:2014:i:c:p:27-35
    DOI: 10.1016/j.jairtraman.2013.12.015
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    References listed on IDEAS

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    1. Productivity Commission, 2006. "Review of Price Regulation of Airports Services," Inquiry Reports, Productivity Commission, Government of Australia, number 40.
    2. Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
    3. Schuster, Dominic, 2009. "Australia's approach to airport charges: The Sydney Airport experience," Journal of Air Transport Management, Elsevier, vol. 15(3), pages 121-126.
    4. Michael O'Donnell & Miriam Glennie & Peter O'Keefe & Seung-Ho Kwon, 2011. "Privatisation and ‘Light-Handed’ Regulation: Sydney Airport," The Economic and Labour Relations Review, , vol. 22(1), pages 65-80, May.
    5. Forsyth, Peter, 2002. "Privatisation and regulation of Australian and New Zealand airports," Journal of Air Transport Management, Elsevier, vol. 8(1), pages 19-28.
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    Citations

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    Cited by:

    1. Spasojevic, Bojana & Lohmann, Gui, 2022. "Air route development - Lessons from Australia," Journal of Air Transport Management, Elsevier, vol. 104(C).
    2. Arblaster, Margaret & Zhang, Chrystal, 2020. "Liberalisation of airport air traffic control: A case study of Spain," Transport Policy, Elsevier, vol. 91(C), pages 38-47.
    3. Trischler, Jakob & Lohmann, Gui, 2018. "Monitoring quality of service at Australian airports: A critical analysis," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 63-71.
    4. Lohmann, Gui & Trischler, Jakob, 2017. "Licence to build, licence to charge? Market power, pricing and the financing of airport infrastructure development in Australia," Transport Policy, Elsevier, vol. 59(C), pages 28-37.
    5. Forsyth, Peter, 2018. "Pre-financing airport investments, efficiency and distribution: Do airlines really lose?," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 259-267.
    6. Kistler, Beat & Trischler, Jakob & Lohmann, Gui, 2018. "Passenger representation within the light-handed regulation – Insights from the Australian air transport market," Transport Policy, Elsevier, vol. 71(C), pages 106-115.
    7. Arblaster, Margaret, 2018. "Regulation in markets facing uncertainty: The case of Australia," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 249-258.
    8. Paramonovs Sergejs & Ijevleva Ksenija, 2015. "Factor Analysis of Passengers’ Satisfaction at “RIGA International Airport”," Economics and Business, Sciendo, vol. 27(1), pages 46-52, August.
    9. Arblaster, Margaret & Zhang, Chrystal, 2021. "Independent or self-regulation: An assessment of economic oversight of air traffic management in Australia and New Zealand," Utilities Policy, Elsevier, vol. 68(C).
    10. Littlechild, Stephen, 2018. "Economic regulation of privatised airports: Some lessons from UK experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 100-114.
    11. Arblaster, Margaret, 2016. "Negotiate-arbitrate regulation of airport services: Twenty years of experience in Australia," Journal of Air Transport Management, Elsevier, vol. 51(C), pages 27-38.
    12. Arblaster, Margaret & Hooper, Paul, 2015. "Light handed regulation–Can it play a role in the developing world?," Transport Policy, Elsevier, vol. 43(C), pages 32-41.
    13. Brown, Richard S., 2016. "Lobbying, political connectedness and financial performance in the air transportation industry," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 61-69.

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