Brisbane Airport Corporation Pty Limited (BAC) asked HoustonKemp to assess whether BAC has a substantial degree of market power in relation to the provision of both car parking and landside access services (such as access roads, taxi holding area, and so on), and whether it has exercised any such power.
We considered the presence of substitutes, the incentive of BAC to maximise visitor traffic and the opportunity cost of the relevant land and the associated locational rents.
This report was prepared for BAC to support its participation into the Productivity Commission’s inquiry into the economic regulation of airport services.
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