This report examines the effectiveness and efficiency of the current economic regulation and quality of service monitoring regime for airports and whether new arrangements are needed.

In 2006, the Productivity Commission conducted a review of the regulatory arrangements for pricing airport services. The review examined the price monitoring regime that had replaced the price capping regime in 2002. The review found that the price-monitoring regime had delivered important benefits, and recommended that the existing arrangements continue.

The Australian Competition and Consumer Commission (ACCC) has continued to prepare Airport Monitoring Reports for public release on an annual basis. In 2008, the Government directed the ACCC to formally monitor prices, costs and profits relating to car parking at Australia's five major airports.

In the 2009 National Aviation Policy White Paper, the Government announced that it would continue with the existing regime including the price and quality of service monitoring conducted by the ACCC with a review to be conducted by the Productivity Commission in 2012. The Government reserved the right to conduct the review earlier. In addition, the Government announced that a second tier self-administered price and quality of service monitoring regime would be introduced for Canberra, Darwin, Gold Coast and Hobart airports. Other airports will also be encouraged to adopt web-based reporting of customer satisfaction measures and outcomes. The airports in the second tier scheme are expected to commence reporting in this financial year.

The purpose of this inquiry is to examine the effectiveness and efficiency of the current economic regulation and quality of service monitoring regime for airports and whether new arrangements are needed. It is also to make recommendations in relation to the requirement for future regulation and monitoring of services and the scope and appropriate mechanism for the provision of greater transparency and accountability in airport infrastructure provision and services.