The economic regulation of airport services will come under scrutiny as the Australian Government announces a Productivity Commission inquiry.

The inquiry will review the efficiency and effectiveness of the economic regulation of airport services where scheduled airline services are provided.

The PC inquiry will also review the provision of passenger and freight transport services at the main passenger airports in major cities.

In addition, the PC is to examine any unintended consequences of the regulatory price cap and price notification regime for regional air services into and out of Sydney Airport.

The Commission is due to report to Government within 12 months.

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