Regulation of commercialized state-owned enterprises: case study of South African airports and air traffic and navigation services

The purpose of this paper is to discuss the regulatory framework pertaining to the recently commercialized State airports and air traffic and navigation services in South Africa. The need for regulation of these companies is reviewed briefly, as well as the supporting legal and policy framework that was put into place before commercialization. The basic process, time frame and interaction concerning regulation are presented. The two main aspects of regulation, namely economic regulation and the regulation of service standards, are also discussed. The various mechanisms for economic regulation are given, followed by a discussion on the service standards that were identified for regulation, and the monitoring procedure. Finally, experiences with the process to date are summarized.