Economic regulation of airports (2019)

Inquiry report

The report examines whether current regulatory arrangements constrain the ability of airport operators to exercise their market power over passengers and airlines through unduly high charges, poor service quality, or both.

Recommendations are presented to enhance transparency over airport performance and to more readily detect any future exercise of market power by airport operators.

This report was sent to Government on 21 June 2019 and publicly released on 22 October 2019.

Download the overview

Download the inquiry report

Government response

  • Cover, Copyright and publication detail, Letter of transmittal, Terms of reference, Acknowledgments, Disclosure of interests, Contents, Abbreviations and Glossary
  • Overview - including key points
  • Recommendations and findings
  • Chapter 1 Introduction
    • 1.1 Airports are operating in a changing environment
    • 1.2 The Commission’s task
    • 1.3 The Commission’s approach
    • 1.4 The current approach to economic regulation of airports
    • 1.5 Characteristics of Australia’s airports
  • Chapter 2 Analytical framework
    • 2.1 Why do governments intervene?
    • 2.2 Market power in airport services
    • 2.3 A fit-for-purpose regulatory regime
  • Chapter 3 Airports’ market power
    • 3.1 Assessing whether an airport has market power
    • 3.2 Defining markets for aeronautical services
    • 3.3 Constraints on the exercise of market power
    • 3.4 Summary of findings
  • Chapter 4 Negotiations between airports and airlines
    • 4.1 Assessing commercial negotiations
    • 4.2 Characteristics of airport–airline agreements
    • 4.3 Good faith conduct in the negotiation process
    • 4.4 Negotiation outcomes
    • 4.5 Are airports exercising market power through commercial negotiations?
  • Chapter 5 Performance of Australia’s airports
    • 5.1 Assessing airport performance
    • 5.2 Operational efficiency
    • 5.3 Aeronautical revenues and charges
    • 5.4 Profitability
    • 5.5 Performance of the monitored airports
  • Chapter 6 Car parking and landside access
    • 6.1 Ground transport options
    • 6.2 Car parking
    • 6.3 Landside access
    • 6.4 Effectiveness of the monitoring regime
  • Chapter 7 Access arrangements at Sydney Airport
    • 7.1 Regional access to Sydney Airport
    • 7.2 Current regional access regimes at Sydney Airport
    • 7.3 Effectiveness and efficiency of the regional access regimes
    • 7.4 The movement cap and curfew
    • 7.5 The slot management scheme
  • Chapter 8 Competition in markets for jet fuel
    • 8.1 The markets to supply jet fuel
    • 8.2 The current regulatory framework
    • 8.3 Third party access to infrastructure services
    • 8.4 Some markets to supply jet fuel are not competitive
    • 8.5 Is there a case for reform?
    • 8.6 Some airports charge fuel throughput levies
  • Chapter 9 Improving airport regulation
    • 9.1 Evidence of airports’ conduct and performance
    • 9.2 Existing airport regulation remains fit for purpose
    • 9.3 Improving the monitoring regime
  • Chapter 10 Regional airports and land transport links
    • 10.1 Regional airports
    • 10.2 Land transport links
  • Appendix A Public consultation
  • Appendix B Performance of Australia’s airports – sensitivity analysis (online only)
  • References

Printed copies

Printed copies of this report can be purchased from Canprint Communications.

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