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A Review of the Airport-Low Cost Airline Relationship

Author

Listed:
  • Humphreys Ian

    (Loughborough University)

  • Ison Stephen

    (Loughborough University)

  • Francis Graham

    (Waikato University)

Abstract

This paper seeks to review the airport-airline relationship in the light of the growth in the low cost sector, identifying important issues that airport management should consider when negotiating with low cost airlines. Airports have responded to the potential opportunities that have arisen from the growth of low cost airlines. The low cost model has implications for the airline-airport relationship, forcing airports to negotiate contracts which significantly reduce aeronautical revenues whilst seeking to address this short fall by commercial revenues via increased passenger numbers. Airports have sometimes found it difficult to turn increased passenger volume into additional revenue.

Suggested Citation

  • Humphreys Ian & Ison Stephen & Francis Graham, 2006. "A Review of the Airport-Low Cost Airline Relationship," Review of Network Economics, De Gruyter, vol. 5(4), pages 1-8, December.
    • Handle: RePEc:bpj:rneart:v:5:y:2006:i:4:n:3
    DOI: 10.2202/1446-9022.1105
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    Cited by:

    1. Button, Kenneth & Kramberger, Tomaž & Grobin, Klemen & Rosi, Bojan, 2018. "A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 92-97.
    2. Pagliari, Romano & Graham, Anne, 2020. "Airport competition within the Scottish lowlands region," Research in Transportation Economics, Elsevier, vol. 79(C).
    3. Graham, Mark, 2009. "Different models in different spaces or liberalized optimizations? Competitive strategies among low-cost carriers," Journal of Transport Geography, Elsevier, vol. 17(4), pages 306-316.
    4. Choo, Yap Yin & Oum, Tae Hoon, 2013. "Impacts of low cost carrier services on efficiency of the major U.S. airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 60-67.
    5. Tavalaei, M. Mahdi & Santalo, Juan, 2019. "Pure versus hybrid competitive strategies in the airport industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 444-455.

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