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Privatisation and ‘Light-Handed’ Regulation: Sydney Airport

Published online by Cambridge University Press:  01 January 2023

Michael O’Donnell ,
Miriam Glennie ,
Peter O’Keefe  and
Seung-Ho Kwon
Michael O’Donnell
Affiliation:
The University of New South Wales
Miriam Glennie
Affiliation:
The University of New South Wales
Peter O’Keefe
Affiliation:
The University of New South Wales
Seung-Ho Kwon
Affiliation:
The University of New South Wales
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Abstract

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This paper examines the privatisation of Sydney Airport and the regime of ‘light-handed’ monitoring of service quality and airport charges that followed the sale in 2002. The arguments for privatisation are reviewed, in particular the need for increased competition and/or appropriate regulation where a former public monopoly, such as Sydney Airport, is sold. The aftermath of the privatisation of the airport has led to complaints by the major airlines and consumers of ever increasing charges for use of the airfield and for car parking and other services. This highlights that the ‘light-handed’ monitoring regime has not constrained the airport’s ability to charge monopoly rents. The aftermath of privatisation has resulted in labour shedding, outsourcing and a focus on cost minimisation by the airport’s management.

Keywords

J01L51L93R48Airport privatisationprice monitoringmonopoly pricingemployment conditions
Type
Article
Information
The Economic and Labour Relations Review , Volume 22 , Issue 1 , May 2011 , pp. 65 - 80
Copyright
Copyright © The Author(s) 2011

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