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This paper examines the determinants of airport aeronautical charges by employing a unique panel dataset covering sixty-one European airports over an eighteen year period. The authors are able to extend the literature on the role of airports as an essential element in transport infrastructure by offering the first analysis of the impact of different regulatory policies and privatization on airport charges in a panel data setting where fixed effects can be employed to mitigate endogeneity concerns. Their main empirical results indicate that aeronautical charges are lower at airports where single-till regulation is employed; at airports with ex-post price regulation; and at privatized airports. Furthermore, while hub airports generally set higher aeronautical charges, it appears that price-cap regulation and the presence of competing airports do not affect aeronautical charges.
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