Vertical Governance between Airlines and Airports - A Transaction Cost Analysis
AbstractWith airport privatization and infrastructure expansion projects taking place in the liberalized European air transport market, airport and airline companies are critically reevaluating their vertical governance structures. This paper analyzes the comparative efficiency of vertical governance structures in the airport-airline supply relationship. Using transaction cost economics as the lens of analysis, we develop propositions and present supporting qualitative case studies. Our propositions state that hub airlines and hub airports seek specialized governance structures, while value-based carriers and base airports enter into long-term contracts supported by complementary safeguards. These privately crafted governance modes complement or even replace external regulation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal Review of Network Economics.
Volume (Year): 5 (2006)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- Johannes Fuhr & Thorsten Beckers, 2006. "Vertical Governance between Airlines and Airports – A Transaction Cost Analysis," Working Papers 2006-04, Center for Network Industries and Infrastructure (CNI).
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Schmidberger, Stephan & Bals, Lydia & Hartmann, Evi & Jahns, Christopher, 2009. "Ground handling services at European hub airports: Development of a performance measurement system for benchmarking," International Journal of Production Economics, Elsevier, vol. 117(1), pages 104-116, January.
- Merkert, Rico & Cowie, Jonathan, 2012. "A quantitative cross-modal analysis of transportation firmsâ€™ transaction costs â€“ Are airlines any different?," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 3-8.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.