SESSION ONE: ECONOMIC REGULATION IN THE ERA OF AIRLINE CONSOLIDATION AND AIRPORT COMPETITION (PANEL DISCUSSION)
Airport economic regulation around the world is under review. The European Union is assessing the Airport Charges Directive, and Australia’s Productivity Commission is conducting an inquiry of the economic regulation of airports, and both plan to issue reports later this year. These reviews are being pushed stakeholders, but they also come at a moment when it may be appropriate to look at the strategic shift of aviation and consider the relevance of historical reflexes for regulation.
Changing airline business models have induced new efficiencies and reduced transport costs for passengers, but continued airline consolidation may reverse this trend. Airline groups and global co-operation between airlines, in conjunction with a new generation aircraft, have opened up markets. Airports are competing in a much wider market for airlines, routes and passengers.
These trends and the development of aviation raise the question as to whether there is a need for heavy handed regulation on airport’s aeronautical services. Are market-based solutions such as long-term contracts and bilateral agreements between airports and airlines the most efficient and cost-effective apparatus for certain markets? How can airport operators break even on aeronautical revenues in an era of airline consolidation and airport competition?
Chair: John Strickland, Director, JLS Consulting
Simon McNamara, Area Manager UK and Ireland, IATA
Roberto Costa, Manager – Air Services Operation Branch, ANAC Brazil
Rajeev Jain, Chief Executive Officer, Mumbai International Airport
Christophe Dussart>, Head of Unit, European Commission
Thierry Ligonnière, Director, ANA Aeroportos de Portugal