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Review of Price Regulation of Airports Services


  • Productivity Commission


The Productivity Commission’s inquiry report into ‘Review of Price Regulation of Airport Services’ was tabled in Parliament in April 2007. A price monitoring regime for airport services was introduced at Australia’s seven major mainland airports by the Australian Government following an inquiry by the Productivity Commission in 2002. In April 2006, the Government asked the Commission to conduct an inquiry to examine the effectiveness of that regime and to advise on any changes that should be made. The Commission’s final report was released in April 2007. In announcing a new price monitoring regime for airport services in Australia beyond 2007, the Government accepted the bulk of the Commission’s arguments and recommendations, including in relation to: more limited airport coverage – Sydney, Melbourne, Brisbane, Perth and Adelaide Airports – with Darwin and Canberra Airports excluded from monitoring from mid 2007; the introduction of a ‘show cause’ process for triggering further investigations of a monitored airports’ conduct, and the establishment of a ‘starting’ aeronautical asset base for future asset valuation purposes; and a slight expansion in the range of monitored services at the five major airports. The Government also accepted the Commission’s recommendation for a further independent review in 2012.

Suggested Citation

  • Productivity Commission, 2006. "Review of Price Regulation of Airports Services," Inquiry Reports, Productivity Commission, Government of Australia, number 40.
  • Handle: RePEc:ris:prodir:40
    Note: 210 pages

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    References listed on IDEAS

    1. Productivity Commission, 2002. "Review of the National Access Regime," Others 0210002, University Library of Munich, Germany.
    2. Productivity Commission, 2001. "International Air Services," International Trade 0108004, University Library of Munich, Germany.
    3. מחקר - ביטוח לאומי, 2006. "Summary for 2005," Working Papers 29, National Insurance Institute of Israel.
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    Cited by:

    1. Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
    2. 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.
    3. Alan Moran, 2007. "Land Regulations, Housing Prices and Productivity," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 14(1), pages 35-50.
    4. Forsyth, Peter, 2007. "The impacts of emerging aviation trends on airport infrastructure," Journal of Air Transport Management, Elsevier, vol. 13(1), pages 45-52.
    5. 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.
    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.
    7. 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.
    8. Littlechild, Stephen C., 2012. "German airport regulation: Framework agreements, civil law and the EU Directive," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 63-75.

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    More about this item


    prices; Prices regulation; Prices Surveillance Act; Price monitoring; Regulation;
    All these keywords.

    JEL classification:

    • H - Public Economics
    • I - Health, Education, and Welfare
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics


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