NMa Study on the economic market power of Schiphol. Consultation Meeting February 25, 2010

Transcription

1 NMa Study on the economic market power of Schiphol Consultation Meeting February 25, 2010

2 Program 13:30 13:45 Introduction (NMa) 13:45 14:00 Scope of the study (NMa) 14:00 15:00 GAP study (GAP) 15:00 15:20 Advice on regulation (NMa) 15:20 16:00 Q&A (GAP/NMa) 2

3 Introduction: Project overview ( Study of the economic market power of N.V. Luchthaven Schiphol on the relevant market(s) for aviation(-related) services on Schiphol Airport ( Request of the Ministry of Transport: part of the evaluation of the Aviation Act ( Wet Luchtvaart ) ( Advisory board: Ministry of Transport, Ministry of Economics, ECORYS and NMa 3

4 Introduction: Evaluation Aviation Act ( Aviation Act ( Wet Luchtvaart ) effective since 2006 Partly based on NMa report 2001 on economic market power of Schiphol ( One of the central questions: Do current market conditions still justify sectorspecific regulation of charges and conditions? ( Evaluation ready in the course of 2010, includes: NMa study on economic market power situation for aviation(-related) services of Schiphol 4

5 Introduction: Process 2009 Progress meetings Advisory board Publication 2010 Consultation Final report NMa August September October November December January February March Study definition & supplier selection GAP Schiphol Study NMa Schiphol Study Reporting Reporting Consultation Meeting Informal consultation on NMa report until March 26, 2010 Final publication in April

6 Program 13:30 13:45 Introduction + Process (NMa) 13:45 14:00 Scope of the study (NMa) 14:00-15:00 GAP study (GAP) 15:00-15:20 Advice on regulation (NMa) 15:20-16:00 Q&A (GAP/NMa) 6

7 Scope: Phasing 1. Scope of the study ( NMa and Ministry of Transport: Aviation and aviation-related activities 2. Study on the economic market power ( Aviation and aviation-related activities ( Executed by German Airport Performance (GAP) 3. Assessment of advisability of (continuation of) sector-specific regulation ( Risk of abuse of market power? ( General competition law sufficient? 7

8 Scope: Aviation activities Dutch Aviation Act: 1. Aviation activities are activities of the airport operator to facilitate: Take-off and landing of aircrafts, including at least the use by aircrafts of taxiways, runways and platforms Aircraft parking, including at least the use by aircrafts of the parking facilities on the airport Processing of passengers of aircrafts and their luggage related to take-off and landing of aircraft, including at least: The use of the passenger terminal, and The use of access roads Security of passengers and their luggage, including the facilities for customs check 2. Activities directly connected to aviation activities: Granting concessions for (re)fueling of aircrafts Granting concessions for catering of aircrafts Utilities Activities by or for the airport operator that have been charged to the aviation activities and billed to third parties 8

9 Scope: Business areas Schiphol Aviation Consumers In scope Aviation (Luchtvaartactiviteiten) Aviation-related (Activiteiten nauw verbonden met de luchtvaartactiviteiten) Real Estate Alliances & Partnerships Out of Scope Other activities (Overige nietluchtvaartactiviteiten) Area sizes in line with 2008 sales levels 9

10 Scope: Other activities ( Remaining activities in three business areas 1. Consumers 2. Real Estate 3. Alliances & Participations Not in scope: Market structures do not point towards market power No reason for pro-active NMa research No complaints Few signals, but no base for further analysis Sector-specific regulation not advisable General competion law sufficient 10

11 1. Consumers Market structures: Parking: alternatives around Schiphol; other transportation Shops & Catering: part of wider geographic market No reason for pro-active NMa investigation No complaints Few signals Review of signal information: No suspicion of competitive issues Sector-specific regulation not advisable General competion law sufficient Scope: Other activities 11

12 2. Real Estate Market structures: Real Estate: alternatives around Schiphol (Hoofddorp, Badhoevedorp, Amsterdam Zuid-as) Compare Commission ROL (Ruimtelijke Ontwikkeling Luchthavens) No complaints Few signals Review of signal information: No suspicion of competitive issues No reason for pro-active NMa investigation Sector- specific regulation not advisable General competion law sufficient Scope: Other activities 12

13 3. Alliances & Participations Mainly concerns foreign markets where NMa has no authority No reason for pro-active NMa investigation No complaints No signals Stakes in local (and foreign) airports taken into account in GAP study on market power of Schiphol, but otherwise irrelevant General competion law sufficient Scope: Other activities 13

14 Program 13:30 13:45 Introduction + Process (NMa) 13:45 14:00 Scope of the study (NMa) 14:00-15:00 GAP study (GAP) 15:00-15:20 Advice on regulation (NMa) 15:20-16:00 Q&A (GAP/NMa) 14

15 Presentation GAP 15

16 Program 13:30 13:45 Introduction + Process (NMa) 13:45 14:00 Scope of the study (NMa) 14:00-15:00 GAP study (GAP) 15:00-15:20 Advice on regulation (NMa) 15:20-16:00 Q&A (GAP/NMa) 16

17 Advice on regulation ( Objective: Given economic market power on relevant market(s) is (continuation of) sector-specific regulation advisable or is general competition law sufficient? ( Focus on advice for or against sector-specific regulation Ministry of Transports decides on regulation Regulatory regime is object of evaluation Aviation Act No NMa advice on content of regulation 17

18 Sector-specific regulation ( General competition regulation is based on NL/EU competition law ( Sector-specific regulation sets additional conditions to prevent abuse of market power ( Preference for sector-specific regulation when potential competition issues require frequent, more extensive or efficient measures Analysis of risk of abuse, and Cost/benefit analysis of sector-specific regulation ( Network industries often have sector-specific regulation 18

19 Markets and activities Market categories with market power Activities Aviation activities ATO1-3 Aviation-related activities Access for groundhandlers GHS1-11 Tenancy / Rentals TE1-3 = activities belong to market category 1. Market for the provision of infrastructure to airlines TE1 2. Market for the access to infrastructure for groundhandlers TE2-3 19

20 Advice on Market category 1 1. Market for the provision of infrastructure to airlines Aviation Activities ATO1-3 ( Risk of abuse of market power Opportunity and incentive to increase charges for airlines (or other forms of abuse) ( Considerations of Aviation Act still valid: Frequent complaints on charges to be expected. General competion law not effective due to long procedures and only invention after problem has occured Continuation of sector-specific regulation advisable 20

21 Advice on Market category 2 2. Market for the access to infrastructure for groundhandlers & others Access for groundhandlers GHS1-11 ( Risk of abuse of market power Opportunity and incentive to set charges for groundhandlers Currently only concessions for refueling ( Considerations Activities related to Aviation activities: better to regulate both Consistency of regulation: regulate all access to groundhandlers Minimal cost of regulation: fits into current regulation Sector-specific regulation advisable 21

22 Advice on tenancy / rentals Tenancy / Rentals TE1-3 (part of market categories 1 & 2) ( Risk of abuse of market power Incentive based on profit maximizing behavior Operationally required spaces ( Considerations Rents currently in line with rents for spaces not operationally required: locational rents Harder to regulate: which spaces are operationally required, how much space is required etc. : Costs outweigh benefits General competition law sufficient 22

23 Markets and activities Activities Aviation activities ATO1-3 Aviation-related activities Advice on regulation Sector-specific regulation advisable General competition law sufficient Access for groundhandlers GHS1-11 Tenancy / Rentals TE1-3 = NMa advice, = alternative to be considered 23

24 Conclusions ( Study on the economic market power on aviation(-related) activities on Schiphol airport ( Two relevant market categories defined (+subdivision) 1. Market for the provision of infrastructure to airlines 2. Market for the access to infrastructure for groundhandlers & others ( Economic market power found on both market categories ( Advice on regulation Continue sector-specific regulation on aviation activities Include all access for groundhandlers in sector-specific regulation General competion law sufficent for rentals and other nonaviation activities 24

25 Program 13:30 13:45 Introduction + Process (NMa) 13:45 14:00 Scope of the study (NMa) 14:00-15:00 GAP study (GAP) 15:00-15:20 Advice on regulation (NMa) 15:20-16:00 Q&A (GAP/NMa) 25

26 26 Q&A