Price regulation of airport services (2002)

Preliminaries

Cover, Copyright, Signing Page, Terms of reference, Contents, Abbreviations and explanations, Glossary, Key messages, Overview, Recommendations and findings

• 1 Introduction
  • 1.1 Terms of reference
  • 1.2 Background to the current inquiry
  • 1.3 The Commission’s approach
  • 1.4 Conduct of the inquiry
• 2 Australian airports and their markets
  • 2.1 Airport facilities and services
  • 2.2 Australian airports
  • 2.3 The airport business at core-regulated airports
  • 2.4 The airport business at other Australian airports
• 3 The regulatory environment
  • 3.1 Price regulation until October 2001
  • 3.2 Price regulation since October 2001
  • 3.3 Quality of service monitoring
  • 3.4 Access regulation
  • 3.5 Other relevant regulation for core-regulated airports
  • 3.6 Regulation of airports not subject to price regulation
• 4 Assessing the need for price regulation of airport services: some preliminary issues
  • 4.1 Why regulate prices of airport services?
  • 4.2 Potential efficiency and distributional effects of market power
  • 4.3 Principles of efficient pricing of airport services
  • 4.4 Principles of good regulation
• 5 Market power of airports
  • 5.1 Introduction
  • 5.2 Airports and barriers to entry
  • 5.3 Price elasticity of demand for an airport’s services
  • 5.4 Summing up
• 6 Market power in particular airport services
  • 6.1 Introduction
  • 6.2 Aircraft movement facilities
  • 6.3 Passenger processing facilities
  • 6.4 Lounge space (VIP and business)
  • 6.5 Landside vehicle facilities
  • 6.6 Aircraft refuelling
  • 6.7 Maintenance facilities
  • 6.8 Flight catering facilities
  • 6.9 Freight handling and ground service equipment storage sites
  • 6.10 Freight facility sites and buildings
  • 6.11 Waste disposal facilities
  • 6.12 Administrative office space
  • 6.13 Commercial and retail activities
  • 6.14 Summary
• 7 Conduct of unregulated airports
  • 7.1 Influences on unregulated airport pricing
  • 7.2 Conduct of unregulated airports: efficiency and distributional effects
• 8 Review of airport price regulation: price-cap and prices-notification arrangements
  • 8.1 Introduction1
  • 8.2 The price cap: CPI-X and prices notification of aeronautical services
  • 8.3 The price cap: allowable price increases above the cap
  • 8.4 Recent changes to price regulation
  • 8.5 Price regulation of Sydney Airport services
• 9 Review of airport regulation: price monitoring, quality monitoring
  • 9.1 Price monitoring of airport services
  • 9.2 Monitoring of quality of service provision
  • 9.3 Access regulation
• 10 Regulatory options: cost-based and incentive regulation
  • 10.1 Cost-based and incentive regulation
  • 10.2 Future regulation: price caps and Australian airports
  • 10.3 Coverage of price caps and cost-based regulation
• 11 Regulatory options: price monitoring, access provisions and general competition law
  • 11.1 Price monitoring
  • 11.2 Access provisions and general competition law
• 12 Appropriate future regulation: the Commission’s assessment
  • 12.1 The Commission’s task
  • 12.2 The Commission’s assessment of the need for regulation
  • 12.3 Option A: dual-till price caps
  • 12.4 Option B: price monitoring
  • 12.5 Weighing the options