Review of Price Regulation of Airports Services

The Productivity Commission’s inquiry report into ‘Review of Price Regulation of Airport Services’ was tabled in Parliament in April 2007. A price monitoring regime for airport services was introduced at Australia’s seven major mainland airports by the Australian Government following an inquiry by the Productivity Commission in 2002. In April 2006, the Government asked the Commission to conduct an inquiry to examine the effectiveness of that regime and to advise on any changes that should be made. The Commission’s final report was released in April 2007. In announcing a new price monitoring regime for airport services in Australia beyond 2007, the Government accepted the bulk of the Commission’s arguments and recommendations, including in relation to: more limited airport coverage – Sydney, Melbourne, Brisbane, Perth and Adelaide Airports – with Darwin and Canberra Airports excluded from monitoring from mid 2007; the introduction of a ‘show cause’ process for triggering further investigations of a monitored airports’ conduct, and the establishment of a ‘starting’ aeronautical asset base for future asset valuation purposes; and a slight expansion in the range of monitored services at the five major airports. The Government also accepted the Commission’s recommendation for a further independent review in 2012.