Privatisation and regulation of Australian and New Zealand airports

The paper offers a brief background on the Australian and New Zealand airports. A discussion of the approach to price regulation being implemented by Australian regulators in other industries is provided to give an indication of how the as yet new regulation of airports will develop. Some specific regulatory issues which are emerging are also considered; first, the merits of the dual till approach are considered, and then how the regulator is handling investments in new capacity. The New Zealand policy of no formal price regulation is examined. The main problems in privatizing and regulating Sydney are discussed.