Airport pricing - light handed or limp wristed? The Australian experience

As Australia’s Productivity Commission reports on the country’s

experiment with a light-handed approach to airport pricing control, Airport

Investor Monthly looks at the recommendations, government and airport responses,

and weighs up alternative methodologies in other countries. [5492 words]

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This report contains the following subheadings:

• Initial regulation recognised the new found market power of the airports
• The outcomes to date
• But there have been some negatives
• What should happen next?
• Foundations for a post-2007 light handed approach
• A smaller group of airports
• A wider group of services to be monitored
• Continuity is the best way forward
• Australian government response – largely in agreement
• Airport response – Melbourne
• International comparison – New Zealand, a battleground
• International comparison – US, too complex for national enforcement
• International comparison – UK
• The EC sets out its stall: a greater appetite for regulation
• Four items in focus