1st Edition

The Economic Regulation of Airports Recent Developments in Australasia, North America and Europe

    This tour d'horizon book reviews airport regulation and competition in different regions of the world and contrasts different policy perspectives. Organized in four parts, the first three examine, in turn, Australasia, North America, and Europe, while the last section looks at the institutional reforms that have taken place in these regions. The book covers the regulation of airports, and competition in different regions, as well as privatization policy, the interaction between airports and airlines, and regional economic impacts. It also examines the linkages between governance structures and forms of regulation. The book's global sweep embraces all the large aviation markets, bringing together the ideas and challenges of academic economists, airlines, airport managers, consultants and government regulators. As well as looking at different methods, degrees and paradigms of regulation it also spells out the stress-points, in a way that makes essential reading for airport operators, airline operations staff, as well as academic economists concerned with transport studies. It also offers interesting reading and important lessons for those concerned with regulation of the utility industries such as, telecommunications, water and power generation and distribution - where infrastructure can be subject to natural monopoly characteristics and where firms competing in downstream markets are dependent on the investment and operational strategies of the upstream infrastructure operator.

    Contents: Introduction and Overview. Australasia: Replacing regulation: airport price monitoring in Australia, Peter Forsyth; A shift towards regulation? The case of New Zealand, Peter McKenzie-Williams. North America: Airport pricing, financing and policy: report to National Transportation Act Review Committee, David W. Gillen and William Morrison; The regulation of US airports, Anne Graham. Europe: Calculating the short-run marginal infrastructure costs of runway use: an application to Dublin Airport, Oliver Hogan and David Starkie; Privatization and regulation of Amsterdam Airport, Jaap De Wit; Airport regulation in the UK, Nienke Hendriks and Doug Andrew; UK - regulation from the perspective of BAA plc, Mike Toms; New approaches in airline/airport relations - the charges framework of Frankfurt Airport, Michael Klenk; Privatization in Austria: some theoretical reasons and first results about the privatization proceeds in general and of Vienna Airport, Friedrich Schneider; Regulation in times of crisis: experiences with a public-private price cap contract at Hamburg Airport, Thomas Immelmann; Capacity utilization, investment and regulatory reform of German airports, Hans-Martin Niemeier. Towards Institutional Reforms: Optimal economic regulation: a short survey of developments from the 1970s to the 1990s, Cathal Guiomard; Airport privatization and regulation - getting the institutions right, Hartmut Wolf; On the institutional setting of ex-post regulation in regulated industries, Bernhard Duijm.


    Peter Forsyth is Professor of Economics at Monash University, Australia; David W. Gillen is Professor at the School of Business and Economics, Wilfrid Laurier University, Canada, and University of California, Berkeley, USA; Dr. Andreas Knorr is Professor for International Economics at the Department of Business Studies and Economics, University of Bremen, Germany; Dr. Otto G. Mayer is Head of the Presidential Department of the Hamburg Institute of International Economics (HWWA), Germany; Dr. Hans-Martin Niemeier is Professor for Transportation Economics and Logistics at the University of Applied Sciences, Bremen, Germany and David Starkie is a Director of Economics-Plus Ltd and the Regulatory Policy Institute, Oxford, UK.

    ’...contains a wealth of information on the practice of airport regulation, and therefore is required reading for any academic or practitioner involved with airport privatisation and regulation.' Aerlines Magazine '... this is an excellent and very readable set of papers bringing one up to date on the theory and practice of economic regulation of airports. For those involved in future privatisations, this book will be an invaluable guide.' The Aerospace Professional, April 2005 'This is a much welcomed synopsis of a complex and challenging issue and can be recommended to anyone with an interest in how the airport sector should be developed efficiently and effectively in the future.' Logistics and Transport Focus, November 2005