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Negotiate-arbitrate regulation of airport services: Twenty years of experience in Australia

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  • Arblaster, Margaret

Abstract

Negotiate-arbitrate regulation has played a role in the economic regulation of airports in Australia since the introduction of a national access regime in 1995. Over a twenty year period there have been three cases where negotiate-arbitrate regulation (NAR) has been applied to airport services, two cases where a decision has been made to not apply negotiate-arbitrate regulation to services provided and a case where an airline has sought to apply NAR and then withdrawn its application. The experience of the application of NAR to airport services is examined against a background discussion on issues associated with countervailing power in airport services. Based on the experience, some observations are made which reflect advantages and disadvantages of the application of NAR to airport services. NAR has provided a targeted approach to economic regulation of airport services in Australia, involving negotiated outcomes and limited intrusion into the aviation markets.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jaitra:v:51:y:2016:i:c:p:27-38
    DOI: 10.1016/j.jairtraman.2015.11.004
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    References listed on IDEAS

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    1. Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
    2. Adler, Nicole & Forsyth, Peter & Mueller, Juergen & Niemeier, Hans-Martin, 2015. "An economic assessment of airport incentive regulation," Transport Policy, Elsevier, vol. 41(C), pages 5-15.
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    4. Productivity Commission, 2006. "Review of Price Regulation of Airports Services," Inquiry Reports, Productivity Commission, Government of Australia, number 40.
    5. Gillen, David, 2011. "The evolution of airport ownership and governance," Journal of Air Transport Management, Elsevier, vol. 17(1), pages 3-13.
    6. 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.
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    Cited by:

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    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.

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