Car parking and ground access – Perth

Perth Airport Pty Ltd (PAPL) asked HoustonKemp to assess whether PAPL 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 substitute services, the recent decline in parking at Perth Airport, the incentive for PAPL to increase airport patronage (rather than increase car parking revenue) and the opportunity cost of the relevant land and the associated locational rents.

This report was prepared for PAPL to support its submission to the Productivity Commission’s review of the performance of the regulatory regime for airports over the twelve months commencing late June 2018.

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