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Australian airport regulation: Exploring the frontier

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  • Littlechild, Stephen C.

Abstract

In 2002 Australia removed its price freeze on major airports and instituted light-handed regulation including price monitoring. Internationally, this policy is at the frontier. In general it has worked well but there are concerns that it is ineffective in protecting against windfall gains for airports, that investment incentives are a weak link, that Sydney Airport has deferred investment and let service quality fall, and that airlines are still vulnerable to airport market power. These concerns do not justify re-imposition of price control but they require a method for addressing them. Airlines have proposed independent dispute resolution. Experience elsewhere suggests that concerns about this approach are unjustified, and that it would take light-handed regulation forward.

Suggested Citation

  • Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
  • Handle: RePEc:eee:jaitra:v:21:y:2012:i:c:p:50-62
    DOI: 10.1016/j.jairtraman.2011.12.017
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christine Brandstätt & Gert Brunekreeft & Nele Friedrichsen, 2013. "The Need for More Flexibility in the Regulation of Smart Grids – Stakeholder Involvement," Bremen Energy Working Papers 0013, Bremen Energy Research.
    2. repec:eee:jaitra:v:67:y:2018:i:c:p:63-71 is not listed on IDEAS
    3. repec:eee:jaitra:v:67:y:2018:i:c:p:211-223 is not listed on IDEAS
    4. repec:eee:trapol:v:59:y:2017:i:c:p:28-37 is not listed on IDEAS
    5. Nele Friedrichsen & Christine Brandstätt & Gert Brunekreeft, 2014. "The need for more flexibility in the regulation of smart grids – stakeholder involvement," International Economics and Economic Policy, Springer, vol. 11(1), pages 261-275, February.
    6. repec:eee:transa:v:112:y:2018:i:c:p:46-59 is not listed on IDEAS
    7. 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.
    8. repec:sgh:gosnar:y:2018:i:2:p:49-72 is not listed on IDEAS
    9. Kratzsch, Uwe & Sieg, Gernot, 2012. "No need to regulate airports with predominantly non-aeronautical revenues," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 52, pages 1-7.
    10. repec:eee:transa:v:114:y:2018:i:pa:p:100-114 is not listed on IDEAS
    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. repec:eee:trapol:v:71:y:2018:i:c:p:106-115 is not listed on IDEAS
    13. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2016. "Airport capacity choice under airport-airline vertical arrangements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 298-309.
    14. 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.
    15. Kivits, Robbert & Charles, Michael B., 2015. "Aviation planning policy in Australia: Identifying frames of reference to support public decision making," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 102-111.
    16. 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.
    17. 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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