Productivity Commission report into the Economic Regulation of Airports

The Liberal and Nationals Government today released its response to the Productivity Commission report into the Economic Regulation of Airports.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the report was commissioned by the Government in June 2018 to undertake a thorough review of the performance of Australia’s airports.

“The Productivity Commission report found airports do not act to the detriment of the community because there is transparency about their performance and a credible threat of additional regulation if they misuse their market power,” Mr McCormack said. 

“The Government has adopted the Productivity Commission’s recommendations to improve transparency by enhancing the monitoring of both pricing and service quality at Australian airports.

“The Australian Government will continue ensuring all visitors to Australian airports have access to quality services and are charged fair prices.

“It is important to keep in mind we are seeing continued growth in passenger numbers facilitated by record levels of private sector investment in our major airports.”

Treasurer Josh Frydenberg said the Productivity Commission has conducted a comprehensive assessment of the outcomes being delivered by the current regulation of airports.

“The Government’s response seeks to get the regulatory balance right, encouraging the necessary infrastructure investment and the best possible consumer outcomes,” Mr Frydenberg said. 

“As a result of the regulatory certainty provided by the Government’s response and through greater transparency on the quality and cost of services provided by airports and ongoing monitoring by the ACCC, the Government expects Australia’s airports to continue to expand and improve the services they provide.” 

“The Government encourages our leading airlines and airports to work together in the best interests of all those who use their service.” 

The Government response is available at www.treasury.gov.au