The Economic Regulation of Airports: Recent Developments in Australasia, North America and Europe

260 Pages·2004·6.66 MB·English

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THE ECONOMIC REGULATION OFAIRPORTS
In memory of Martin Kunz
Thisbook isdedicated toourerstwhile colleague and friend Martin Kunz,whowas
one of the principals founding GARS. Sadly Martin died shortly before the first
meeting. We especially miss his well-founded and provocative advice in airport
regulation,whichwashismainfieldofresearch.
The Economic Regulation
ofAirports
RecentDevelopmentsinAustralasia,NorthAmerica
and Europe
Edited by
PETER FORSYTH
DAVID W. GILLEN
ANDREAS KNORR
OTTO G MAYER
HANS-MARTIN NIEMEIER
DAVID STARKIE
Published in Association with the
German Aviation Research Society (GARS)
Firstpublished 2004byAshgate Publishing
Published 2017by Routledge
2Park Square,MiltonPark,Abingdon, Oxon,0X14 4RN
711ThirdAvenue,NewYork,NY 10017,USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright © Peter Forsyth, David W.Gillen, Andreas Knorr, Otto G.Mayer,
Hans-Martin andDavid Starkie2004
PeterForsyth,DavidW.Gillen,AndreasKnorr,OttoG Mayer,Hans-MartinNiemeier
andDavidStarkiehaveassertedtheir rightundertheCopyright,DesignsandPatents
Act, 1988,tobeidentified astheeditorsofthiswork.
Allrightsreserved.Nopart ofthisbook maybereprinted orreproduced orutilised
in any form or by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in any information
storageorretrieval system,withoutpermission inwriting from thepublishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are
usedonlyforidentification andexplanationwithout intentto infringe.
British Library Cataloguing in Publication Data
Theeconomicregulationofairports :recent developments
inAustralasia,NorthAmericaandEurope.-(Ashgate
studiesinaviationeconomicsandmanagement)
1.Airports-Lawandlegislation2.Airports-Economic
aspects
I.Forsyth,Peter
387.736
Library of Congress Cataloging-in-Publication Data
Theeconomicregulationofairports:recentdevelopmentsinAustralasia,NorthAmerica
andEurope/editedbyPeterForsyth... [etal.].
p. cm.—(Ashgate studiesinaviationeconomics andmanagement)
PublishedinassociationwithGermanAviationResearchSociety(G.A.R.S.).
Includesbibliographical references.
ISBN0-7546-3816-2
1.Aeronautics,Commercial—Governmentpolicy—Casestudies.2.Aeronautics,
Commercial—Deregulation-Case studies.I.Forsyth,P.(Peter)II.Series.
HE9777.7.E282004
387.7'36~dc22
2003063923
ISBN 13:978-0-7546-3816-2 (hbk)
Contents
Acknowledgements vii
Editors and Contributors ix
Introduction and Overview xiii
Part A: Australasia
1. Replacing Regulation: Airport PriceMonitoring inAustralia
Peter Forsyth 3
2. AShift Towards Regulation? TheCaseofNew Zealand
Peter McKenzie- Williams 23
Part B: North America
3. Airport Pricing,Financing andPolicy:Report toNational
Transportation ActReview Committee
David W. Gillen and William Morrison 45
4. TheRegulation ofUS Airports
Anne Graham 63
Part C: Europe
5. Calculating the Short-RunMarginal Infrastructure Costs
ofRunwayUse:AnApplication toDublin Airport
Oliver Hogan and David Starkie 75
6. Privatisation andRegulation ofAmsterdam Airport
Jaap de Wit 83
7. Airport Regulation intheUK
Nienke Hendriks and Doug Andrew 101
8. UK-Regulation from thePerspective oftheBAApic
Mike Toms 117
VI The Economie Regulation of Airports
9. NewApproaches inAirline/Airport Relations:The Charges
Framework ofFrankfurt Airport
Michael Klenk 125
10. Privatization inAustria: SomeTheoretical Reasonsand
FirstResultsaboutthePrivatization Proceeds inGeneral
andofVienna Airport
Friedrich Schneider 141
11. Regulation inTimes ofCrisis:Experiences withaPublic-
PrivatePrice CapContract atHamburg Airport
Thomas Immelmanti 155
12. CapacityUtilization, Investment andRegulatory Reform of
German Airports
Hans-Martin Niemeier 163
Part D: Towards Institutional Reforms
13. OptimalEconomicRegulation:AShort Surveyof
Developments from the 1970stothe 1990s
Cathal Guiomard 193
14.Airport Privatisation and Regulation: Gettingthe
Institutions Right
Hartmut Wolf 201
15. OntheInstitutional Setting ofEx-Post Regulation
inRegulated Industries
Bernhard Duijm 213
Acknowledgements
The book is a compilation of selected papers presented at three workshops
organized by the German Aviation Research Society. We would like to thank the
HWWA - Institute of Economic Research, the University of Bremen and the
University of Applied Sciences Bremen for acting as hosts. We are also grateful to
Hamburg Airport, Lufthansa and the Wolfgang-Ritter-Stiftung for providing
financial support.
John Hindley of Ashgate Publishers was encouraging with his active participation
in founding GARS and establishing a book series. His commitment was critical.
Our thanks also go to Andreas Arndt, Jürgen MüUer, Wolfgang Strehl for their
support.

Editors and Contributors
Doug Andrew is Lead Infrastructure Specialist of the World Bank. He was Group
Director of Economic Regulation at the UK Civil Aviation Authority, a founding
commissioner ofEurocontrol's Performance Review Commission andamember of
Eurocontrol's Regulatory Committee. Previously, he was deputy secretary in
chargeofregulation andtaxpolicy intheNew ZealandTreasury, andwas educated
at Princeton and Auckland Universities. In addition to his career in the New
Zealand Treasury he had secondments as economic adviser to the New Zealand
leader of the opposition (David Lange) and to the World Bank in the Australian
ExecutiveDirector's Office.
Bernhard Duijm has been a lecturer in Economic Policy at the University of
Tubingen since 1996. His current position is Temporary Professor of Economics.
He received his PhD in Economics from the University of Tubingen in 1990.
Research interests include competition policy in European integration,
interdependence of competition policy and international trade policy, and the
institutional designofcompetition andregulation authorities.
Peter Forsyth has been Professor of Economics at Monash University, Australia
since 1997. Prior to this he held posts at Australian National University and the
University ofNew England. He holds degrees form the University of Sydney and
the University of Oxford. He has specialised in the economics of transport,
especially aviation, privatisation and regulation, and the economics of tourism.
Most recently, he has been paying particular attention to the privatisation and
regulation of airports, and to the use of computable general equilibrium models in
evaluating the economic impacts of tourism. He has recently published an edited
volumeofclassic articles ontheeconomics ofairtransport (Edward Elgar).
David W. Gillen is Professor in the School of Business and Economics, Wilfrid
Laurier University, Waterloo, Canada. He also holds the position of Visiting
Professor in Civil and Environmental Engineering and Research Economist,
Institute ofTransportation Studies,University of California-Berkeley. He obtained
his PhD in Economics from the University of Toronto in 1975. He has held
positions attheUniversity ofAlberta, University ofBritish Columbia and Queen's
University. He has published over 60 articles and 15 books in the areas of
transportation economics, transportation management, industrial organisation and