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Aviation Markets: Studies in Competition and Regulatory Reform is a
collection of 17 papers selected from David Starkie's extensive
writings over the last 25 years. Previously published material has
been extensively edited and adapted, and combined with new
material, published here for the first time. The book is divided
into five sections, each featuring an original overview chapter, to
better establish the background and also explain the papers' wider
significance including, wherever appropriate, their relevance to
current policy issues. These papers have been selected to
illustrate a significant theme that has been relatively neglected
thus far in both aviation and industrial economics: the role of the
market and its interplay with the development of economic policy in
the context of a dynamic but partly price regulated industry. The
result provides a strong flavour of how market mechanisms, and
particularly competition, can operate to successfully resolve
policy issues. The book will be of interest to academics and those
engaged in the formulation of aviation policy, such as public
administrators and consultants, as well as those working in the
aviation industry. It is also relevant to economic studies in a
more general context, particularly to students and practitioners in
industrial organisation economics, including those studying and
researching the public utility industries.
Aviation Markets: Studies in Competition and Regulatory Reform is a
collection of 17 papers selected from David Starkie's extensive
writings over the last 25 years. Previously published material has
been extensively edited and adapted, and combined with new
material, published here for the first time. The book is divided
into five sections, each featuring an original overview chapter, to
better establish the background and also explain the papers' wider
significance including, wherever appropriate, their relevance to
current policy issues. These papers have been selected to
illustrate a significant theme that has been relatively neglected
thus far in both aviation and industrial economics: the role of the
market and its interplay with the development of economic policy in
the context of a dynamic but partly price regulated industry. The
result provides a strong flavour of how market mechanisms, and
particularly competition, can operate to successfully resolve
policy issues. The book will be of interest to academics and those
engaged in the formulation of aviation policy, such as public
administrators and consultants, as well as those working in the
aviation industry. It is also relevant to economic studies in a
more general context, particularly to students and practitioners in
industrial organisation economics, including those studying and
researching the public utility industries.
This tour d'horizon book reviews airport regulation and competition
in different regions of the world and contrasts different policy
perspectives. Organized in four parts, the first three examine, in
turn, Australasia, North America, and Europe, while the last
section looks at the institutional reforms that have taken place in
these regions. The book covers the regulation of airports, and
competition in different regions, as well as privatization policy,
the interaction between airports and airlines, and regional
economic impacts. It also examines the linkages between governance
structures and forms of regulation. The book's global sweep
embraces all the large aviation markets, bringing together the
ideas and challenges of academic economists, airlines, airport
managers, consultants and government regulators. As well as looking
at different methods, degrees and paradigms of regulation it also
spells out the stress-points, in a way that makes essential reading
for airport operators, airline operations staff, as well as
academic economists concerned with transport studies. It also
offers interesting reading and important lessons for those
concerned with regulation of the utility industries such as,
telecommunications, water and power generation and distribution -
where infrastructure can be subject to natural monopoly
characteristics and where firms competing in downstream markets are
dependent on the investment and operational strategies of the
upstream infrastructure operator.
The 1977 BTE Report on Cost Recovery in Australian Transport
1974-75 provided estimates of the aggregate level of financial cos~
recovery in the various modes, by broad transport task. It
suggested that there were substantial differences between modes in
the level of cost recovery. The 1979 Transport Pricing and Cost
Recovery seminar concluded that economic efficiency objectives
required more attention 1n transport pricing and investment
decisions than had been apparent in the past. The principles for
economically efficient pricing were spelt out, and several specific
issues were identified, which are worth following up in this
seminar. These include reconciliation of financial and econom1C
efficiency objectives and the identification of appropriate revenue
targets; specification of the changes 1n accounting and management
information systems which would be required to implement more
economically rational pricing; and identification of the principles
for estimating compensation for public service obligations.
Finally, a brief account 18 given of recent BTE work on cost
recovery in general aviation, and in road and rail transport. BTE
has suggested that econom1C efficiency considerations would require
substantial modification to the present means of collecting revenue
from general aviation, with more reliance placed on direct pricing
measures like flight-specific alr navigation charges and airport
movement charges. On road-rail competition, an order of magnitude
comparison of road and rail cost recovery in the Adelaide-Victorian
border corridor suggests that only the road mode approximately
covers short-run avoidable costs and that both modes fail to cover
long-run avoidable costs.
The 1977 BTE Report on Cost Recovery in Australian Transport
1974-75 provided estimates of the aggregate level of financial cos~
recovery in the various modes, by broad transport task. It
suggested that there were substantial differences between modes in
the level of cost recovery. The 1979 Transport Pricing and Cost
Recovery seminar concluded that economic efficiency objectives
required more attention 1n transport pricing and investment
decisions than had been apparent in the past. The principles for
economically efficient pricing were spelt out, and several specific
issues were identified, which are worth following up in this
seminar. These include reconciliation of financial and econom1C
efficiency objectives and the identification of appropriate revenue
targets; specification of the changes 1n accounting and management
information systems which would be required to implement more
economically rational pricing; and identification of the principles
for estimating compensation for public service obligations.
Finally, a brief account 18 given of recent BTE work on cost
recovery in general aviation, and in road and rail transport. BTE
has suggested that econom1C efficiency considerations would require
substantial modification to the present means of collecting revenue
from general aviation, with more reliance placed on direct pricing
measures like flight-specific alr navigation charges and airport
movement charges. On road-rail competition, an order of magnitude
comparison of road and rail cost recovery in the Adelaide-Victorian
border corridor suggests that only the road mode approximately
covers short-run avoidable costs and that both modes fail to cover
long-run avoidable costs.
The M1 Motorway opened 60 years ago and in this timely history of
the Motorway Age, David Starkie provides a fascinating history of
how and why post war Britain was transformed by new roads, bridges
and tunnels. From Prime Minister Clement Attlee to Margret Thatcher
the policy agenda is unfolded, showing that alongside atomic power
and Concorde, the new technology of motorways captured the
imagination of the nation before collapsing into controversy. But
why were elaborate road schemes first considered necessary; why an
early concentration on building roads between cities; how did
cities cope in the meantime with a rising tide of traffic; how did
they continue to cope once road plans were abandoned; how did
policies translate into decisions to build particular roads and
when to build them, and did political considerations dominate? This
generously illustrated book focuses on these and similar issues,
picking out the most important events and personalities involved
and provides a valuable insight into 'how' and 'why' road policies
changed during the forty years following the Second World War.
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