Funding aviation security: Regional cost of a national benefit

Salomon Kloppers
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Salomon Kloppers: Finance and Investment Professional

Journal of Airport Management, 2019, vol. 14, issue 1, 38-53

Abstract: Aviation security failures have an impact much more significant than just the first-line victims. A literature review shows entire industries (eg tourism) and countries (and regions) suffer as a result of a successful attack. The Australian case is examined, in which a documented history of especially government realisation that the current security funding system is unfair and increasingly unaffordable exists. Security charge data is used to calculate the full cost of security provision at a number of Australia’s security controlled airports. A clear pattern is identified. The aviation security system is designed to keep the aviation network safe. It is, however, found that regional and rural passengers are subsidising those from major airports. Considering the data and various international security funding models, it is found that a domestic network security charge will drastically reduce the security cost of all rural, regional and a number of major airports in Australia to only AU$2.71 per passenger. Two major airports are identified that on a per-person basis will be required to make additional contributions to the national aviation network. A number of issues around transparency, affordability and fairness are raised by the data.

Keywords: airport; aviation; charge; cost; screening; security; public good; passenger (search for similar items in EconPapers)
JEL-codes: M1 M10 R4 R40 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jam000:y:2019:v:14:i:1:p:38-53

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