Airports Council International (ACI) Asia-Pacific has commended Australia’s Productivity Commission for reaching the conclusion in its inquiry on the economic regulation of airports that the existing light-handed economic regulation approach continues to be fit for purpose.
As the industry body representing airports in the region, ACI Asia-Pacific applauded the release of the Productivity Commission’s report as a significant step forward in assuring regulatory certainty and consistency. With airports now being sophisticated businesses in their own right, sufficient levels of investment and charges are essential prerequisites if they are to continue to deliver increased capacity, quality and connectivity.
ACI’s position remains that any regulatory framework must facilitate and incentivise airport investment that drives connectivity, passenger service quality, and, ultimately, wider economic growth and job creation.
It comes as no surprise that successive Australian governments and Productivity Commission reviews have endorsed the current regulatory approach, which encourages strong competition between airlines, resulting in international airfares falling in real terms.