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Liberalisation of the European Ramp-handling Market: A Transaction Cost Assessment

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  • Johannes Fuhr

Abstract

Ten years have passed since the European Commission obliged its member states to open their national handling markets to competition. This paper analyses whether the policy has allowed airlines to design efficient contractual and organisational solutions with their ramp-handling suppliers. Applying transaction cost economics as the lens of analysis, we propose that awarding temporally limited operating licences to new entrants results in inferior economic performance. The presented econometric results on the duration of 42 ramp-handling contracts are largely supportive of this proposition. © 2009 LSE and the University of Bath

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  • Johannes Fuhr, 2009. "Liberalisation of the European Ramp-handling Market: A Transaction Cost Assessment," Journal of Transport Economics and Policy, University of Bath, vol. 43(1), pages 105-122, January.
    • Handle: RePEc:tpe:jtecpo:v:43:y:2009:i:1:p:105-122
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    Cited by:

    1. Merkert, Rico & Cowie, Jonathan, 2012. "A quantitative cross-modal analysis of transportation firms’ transaction costs – Are airlines any different?," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 3-8.
    2. Merkert, Rico & Hakim, Md Mahbubul, 2022. "Travel agency transaction costs in airline value chains – A risk in distribution channels in South Asia?," Annals of Tourism Research, Elsevier, vol. 95(C).
    3. Burghouwt, Guillaume & Poort, Joost & Ritsema, Hendriena, 2014. "Lessons learnt from the market for air freight ground handling at Amsterdam Airport Schiphol," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 56-63.
    4. 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.

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