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Comparing Airport regulation in Europe: Is there need for a European Regulator?

Author

Listed:
  • Rui Cunha Marques

    () (CESUR, DECIVIL-IST, Universidade Técnica de Lisboa)

  • Ana Oliveira-Brochado

    () (EDGE – Faculdade de Economia do Porto, CESUR, DECIVIL-IST, Universidade Técnica de Lisboa)

Abstract

This paper provides an overview of how the major airports are regulated in Europe. In order to eliminate the potential of airports to exercise market power and protect the public interest, it has become increasingly necessary to set a common regulatory framework. We intend to discuss the need of a single regulator in Europe to monitor or establish the quality of service and the charges practiced by the airports, to ensure cost-relatedness, transparency and non-discrimination. The existing regulatory approaches regarding aeronautical charges and their economic implications are also analyzed. We propose the creation of a European Observatory for this sector.

Suggested Citation

  • Rui Cunha Marques & Ana Oliveira-Brochado, 2007. "Comparing Airport regulation in Europe: Is there need for a European Regulator?," FEP Working Papers 259, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:259
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/07.12.19_wp259.pdf
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    References listed on IDEAS

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    1. Forsyth, Peter, 1997. "Price regulation of airports: principles with Australian applications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 297-309, December.
    2. David Starkie, 2001. "Reforming UK Airport Regulation," Journal of Transport Economics and Policy, University of Bath, vol. 35(1), pages 119-135, January.
    3. Stern, Jon & Holder, Stuart, 1999. "Regulatory governance: criteria for assessing the performance of regulatory systems: An application to infrastructure industries in the developing countries of Asia," Utilities Policy, Elsevier, vol. 8(1), pages 33-50, March.
    4. Baumol, William J, 1977. "On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry," American Economic Review, American Economic Association, vol. 67(5), pages 809-822, December.
    5. Achim Czerny, 2006. "Price-cap Regulation of Airports: Single-till Versus Dual-till," Journal of Regulatory Economics, Springer, vol. 30(1), pages 85-97, July.
    6. Cabral, Luis M B & Riordan, Michael H, 1989. "Incentives for Cost Reduction under Price Cap Regulation," Journal of Regulatory Economics, Springer, vol. 1(2), pages 93-102, June.
    7. Starkie, David, 2002. "Airport regulation and competition," Journal of Air Transport Management, Elsevier, vol. 8(1), pages 63-72.
    8. Holt, Derek & Horncastle, Alan & Phillips, Jonathan, 2006. "Capital efficiency at airports and related services," Utilities Policy, Elsevier, vol. 14(4), pages 251-261, December.
    9. Marques, Rui Cunha, 2006. "A yardstick competition model for Portuguese water and sewerage services regulation," Utilities Policy, Elsevier, vol. 14(3), pages 175-184, September.
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    Cited by:

    1. Martin Iltis, 2010. "A brief overview of airport regulation in Europe," Ekonomika a Management, University of Economics, Prague, vol. 2010(3).

    More about this item

    Keywords

    airports; economic regulation; European Observatory;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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