Report calls for better regulation of Australian airports
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Australia’s Productivity Commission has called for “better” economic regulation of the aviation industry. In an advisory report released Monday, the commission set out certain recommendations pertaining to the prices airports charge airlines. While airport charges and profits “look reasonable”, the commission observed that “relationships between some airports and their customers have been strained”. Commissioner Wendy Craik does not want to see more regulation in an already heavily monitored industry, but told the Sydney Morning Herald that current regulations could be improved.
Craik suggests the Australian Competition and Consumer Commission be authorised to direct an airport to justify any changes to its price regime or face an investigation. She believes this will “continue to avoid the costs of heavy-handed regulation while ensuring that all parties understand that inappropriate behaviour carries real sanctions for airport operators”.
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