The purpose of this thesis is to examine some important economic characteristics of the provision of airport facilities. In order t11at the special conditions applying to Australia can be brought into account a detailed examination of Australian institutional arrangements is required.
On the supply side, airports are good examples of multi-product firms which are subject to peaks. Some examination is undertaken, following a review of the literature, of the interconnection between final demand by passengers for aircraft seats and airport facilities, particularly terminals, and intermediate demand by airlines for the use of other airport facilities, notably runways. Some peak load pricing rules for airports as well as an attempt to calculate marginal and total congestion costs are undertaken. A general analysis of demand and cost conditions in Australian airports is attempted.
Existing airport pricing structures are examined, both with a view to efficiency and generation of revenue which has become of crucial importance to airport authorities in the face of large annual losses. Amendment to the existing structures is recommended in the light of both efficiency and revenue generation requirements, particularly as relates to those classes of users which presently escape payment according to use or where charges are not differentiated by time of use.
Finally, an evaluation is undertaken of the desirability of redevelopment of Brisbane airport based on a study carried out by the Bureau of Transport Economics.