Hi it is a project about the airport transport industry. Report of maximum 3 pages (excluding references).
When the major Australian airports were privatised in the late 1990s, a regulatory framework with a price cap and a dual till was established, with a regulatory review every five years. However, after a few years of volatile airport profits, this form of price regulation was identified as causing a number of problems – not least the requirement of detailed and cumbersome regulatory intervention if investment was planned. As a result, in 2001, price regulation was temporarily suspended, and then this was subsequently made permanent with a shift to a light-handed regulation system. This situation has periodically been reviewed by the Australian Productivity Commission, but it remains largely unchanged. As a consequence, a number of airlines have formed longer-term agreements with the airports concerning airport charges.
Write a brief report about this case, the reasons, the consequences, and
lessons learned from doing this case study.
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