Competition and Regulation in the Airport Sector: the Emergence of a Pro-Competitive Regulatory Approach in Brazil
Competition law; sector regulation; airports; pro-competitive regulation; regulatory reform; competition enforcement; competition advocacy.
Over the past decades, the civil aviation industry has undergone significant changes, driven by pro-competitive reforms that aimed at addressing regulations that unduly restricted competition. These developments have fostered increased competition and provided consumers with lower prices and better products and services. While such regulatory reforms have been particularly profound in air transport, the airport sector has also experienced transformations. Indeed, airports face today growing competitive forces, being less often perceived as natural monopolies as in the past. Markets within airports have also evolved, becoming more competitive too (e.g. ground handling services). In this context, a pro-competitive regulatory approach has emerged in the airport sector worldwide in the past decades. This thesis argues that this process is in its early days in Brazil, where it still needs to be properly institutionalised, encompassing all dimensions of airport regulation. Joint and co-ordinated efforts by competition authorities and civil aviation policy makers, including the establishment of a common pro-competitive airport regulation agenda and pro-active competition enforcement and advocacy initiatives, could further embed competition policy into airport regulation. This could ensure that these two public policy areas are indeed complementary tools of state intervention that can guarantee the efficient functioning of the airport sector, enabling consumers to reap its benefits.