26th September 2018
Qantas Group’s submission on the future of aviation regulation in AustraliaQantas Group engaged CEPA to provide economic analysis to support its submission to the Australian Productivity Commission on its inquiry into the economic regulation of airports. The submission itself can be found online. Our report for the Qantas Group contained commercially sensitive information.
Our support included (1) estimating and comparing airports’ cost of raising capital and (2) comparative analysis of single-till, dual-till and hybrid-till regulation. In regard to the former, we provided advice on the cost of capital based on the characteristics of the Australian airports and Australian regulators’, and regulators in other jurisdictions, approaches to estimating the required rate of return. With regard to the advantages and disadvantages of different regulatory ‘till’ regimes, we drew on prior work in Singapore, UK and Europe and the relevant literature to set out the key differences between the regimes and therefore the benefits/ costs that might result for airlines and passengers.
To find out more about CEPA's transport and regulatory work, please contact:
Joel Cook, Principal Consultant, CEPA Australia
Richard Rodger, Head of Marketing, CEPA UK