| The economic market power of Amsterdam Airport Schiphol: A Rejoinder |
Page 1 of 4 Airneth Column September 2010 By Prof. Dr. Andreas Polk on behalf of the GAP study team David Starkie, in his comment published at Airneth, welcomes the study on the assessment of market power of Amsterdam airport Schiphol and points at some methodological aspects and economic judgements, which - according to his point of view - beg some important questions. We stongly welcome the public interest the report arises and appreciate the discussion and proposals of the comment. This rejoinder reflects on some important ideas of the comment and gives answers to some issues. As David notes, the report was commissioned by the Netherlands Competition Authority, NMa. It is part of the evaluation of the Dutch Aviation Act, which aims at analysing if current market conditions still justify sector specific regulation of airport charges and conditions. The evaluation process contains an analysis of the extent of market power of Amsterdam airport Schiphol, which is the study to which David refers. The study team, of which I am a member and on behalf of which I reply, has been asked to take among others two important aspects into account: First, the focus is on aviation and aviation-related services, which generally speaking contain all the services an airport provides to airlines necessary for take-off and landing of aircraft1. Beyond the scope of the study are the non-aviation services Schiphol airport provides, i.e. the airport's real estate or consumer business2. Second, the study needs to be in line with European competition law, and therefore also contains a chapter on the definition of the relevant markets. We agree with David that competition law is sometimes a difficult framework for economists to exercise their skills, as we love trade-offs so much (surely not a synonym for not making up ones mind). But we believe that economists have to be aware of the legal institutions they argue in, and they need to be able to communicate their expertise within this framework to competition experts, lawers and policy makers alike. If the institutional setup is ignored, a study may be a nice intellectual exercise, but it is likely to remain unheard in the political decision making process. Consequently, we appreciate that the NMa requested the study to be within the framework of European competition law, and not beyond it.
1. This includes the provision of infrastructure for take-off and landing of aircraft, aircraft parking, processing of passengers and freight, security checks, as well as granting concessions for refuelling or catering. 2. The general competition law framework is considered to be sufficient to ensure competition in these business fields by the Netherlands Competition Authority. |