Economic Regulation - IATA
Economic Regulation - IATA
Economic Regulation - IATA
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05 The Options for<br />
Independent<br />
<strong>Economic</strong><br />
<strong>Regulation</strong><br />
Price-cap regulation is the most effective<br />
regime for improving airport and ANSP<br />
efficiency. However, additional incentives<br />
and consultative processes must be built in<br />
to the standard CPI-X framework to ensure<br />
that an appropriate balance is achieved<br />
between greater efficiency for existing<br />
assets and timely and cost-effective<br />
new investment.<br />
Light-handed regulation, designed to<br />
reduce the cost burden of regulation, can<br />
only work if there is a credible penalty<br />
mechanism. In many examples, this has<br />
not been the case.