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Competitive drivers towards improved airport/airline relationships

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  • Bush, Harry
  • Starkie, David

Abstract

This paper draws on a recent report from Copenhagen Economics, with which both authors were involved, to argue that the European airport market has changed such that airports are now subject to competitive constraints from a number of sources. While these will bite differentially according to the circumstances of individual airports, airport possession of significant market power can no longer be casually assumed; nor, therefore, can the need for economic regulation. Indeed, the costs and benefits of economic regulation need to be carefully assessed against the extent and nature of the market power it is intended to countervail. In particular, increasing attention needs to be paid to the risks of economic regulation hampering both the further growth of airport competition and the development of more productive commercial relationships between airports and their airline customers which have the potential to create added value for both parties.

Suggested Citation

  • Bush, Harry & Starkie, David, 2014. "Competitive drivers towards improved airport/airline relationships," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 45-49.
    • Handle: RePEc:eee:jaitra:v:41:y:2014:i:c:p:45-49
    DOI: 10.1016/j.jairtraman.2013.09.002
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    References listed on IDEAS

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    1. Starkie, David, 2012. "European airports and airlines: Evolving relationships and the regulatory implications," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 40-49.
    2. Barrett, Sean D., 2004. "How do the demands for airport services differ between full-service carriers and low-cost carriers?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 33-39.
    3. Florian Allroggen & Robert Malina, 2010. "Market power of hub airports: The role of lock-in effects and downstream competition," Working Papers 15, Institute of Transport Economics, University of Muenster.
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