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Regulation under stress: developments in Australian airport policy

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  • Forsyth, Peter

Abstract

Regulation of airports in Australia has been under stress: the problems which have emerged have resulted in the replacement of regulation by less prescriptive price monitoring. The development of policy towards airports, and the debates surrounding them, are analysed. Two major reports, on Sydney airport pricing, and on airport price regulation in general, are discussed. Attention is given to a number of problems areas which have arisen. These include investment incentives under regulation; the level and variability of profits; the existence, use and efficiency cost of market power; and the problems of cost based regulation. The issues posed by the privatisation of Sydney airport, which is subject to excess demand, are also considered. The shift to price monitoring has been a response to these problems, though the content, and likely impact, of monitoring has yet to be determined.

Suggested Citation

  • Forsyth, Peter, 2003. "Regulation under stress: developments in Australian airport policy," Journal of Air Transport Management, Elsevier, vol. 9(1), pages 25-35.
    • Handle: RePEc:eee:jaitra:v:9:y:2003:i:1:p:25-35
    DOI: 10.1016/S0969-6997(02)00070-4
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    Cited by:

    1. Tiziana DíAlfonso & Cinzia Daraio & Alberto Nastasi, 2013. "Assesing the Impact of Competition on the Efficiency of Italian Airports," DIAG Technical Reports 2013-01, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Kan Tsui, Wai Hong & Balli, Hatice Ozer & Gilbey, Andrew & Gow, Hamish, 2014. "Operational efficiency of Asia–Pacific airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 16-24.
    3. Basso, Leonardo J., 2006. "Airport Ownership And Its Effects On Capacity And Price," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208041, Transportation Research Forum.
    4. 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.
    5. Gitto, Simone & Mancuso, Paolo, 2012. "Bootstrapping the Malmquist indexes for Italian airports," International Journal of Production Economics, Elsevier, vol. 135(1), pages 403-411.
    6. Lin, L.C. & Hong, C.H., 2006. "Operational performance evaluation of international major airports: An application of data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 342-351.
    7. Basso, Leonardo J., 2008. "Airport deregulation: Effects on pricing and capacity," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 1015-1031, July.
    8. Zhang, Yahua & Sampaio, Breno & Fu, Xiaowen & Huang, Zhibin, 2018. "Pricing dynamics between airline groups with dual-brand services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 46-59.
    9. Huynh, Triet Minh & Kim, Gyuseung & Ha, Hun-Koo, 2020. "Comparative analysis of efficiency for major Southeast Asia airports: A two-stage approach," Journal of Air Transport Management, Elsevier, vol. 89(C).
    10. Yang, Hangjun & Fu, Xiaowen, 2015. "A comparison of price-cap and light-handed airport regulation with demand uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 122-132.
    11. Zhang, Yahua & Wang, Kun & Fu, Xiaowen, 2017. "Air transport services in regional Australia: Demand pattern, frequency choice and airport entry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 472-489.
    12. Achim I. Czerny & Anmin Zhang, 2015. "Single-Till versus Dual-Till Regulation of Airports," Tinbergen Institute Discussion Papers 15-049/VIII, Tinbergen Institute.
    13. Martín, Juan Carlos & Pilar Socorro, M., 2009. "A new era for airport regulators through capacity investments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 618-625, July.

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