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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. 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.
    3. 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.
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    Citations

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    Cited by:

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    2. Weekx, Simon & Buyle, Sven, 2023. "The effect of airline dominance on airport performance: Empirical evidence from medium-sized European airports," Journal of Air Transport Management, Elsevier, vol. 107(C).
    3. de Wit, Jaap G. & Zuidberg, Joost, 2016. "Route churn: an analysis of low-cost carrier route continuity in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 57-67.
    4. Pagliari, Romano & Graham, Anne, 2020. "Airport competition within the Scottish lowlands region," Research in Transportation Economics, Elsevier, vol. 79(C).
    5. Koo, T. & Halpern, N. & Papatheodorou, A. & Graham, A. & Arvanitis, P., 2016. "Air transport liberalisation and airport dependency: developing a composite index," Journal of Transport Geography, Elsevier, vol. 50(C), pages 83-93.
    6. Sam Liu, Chih-Hsing & Jack Liu, Hsiou-Hsiang & Ng, Yen-Ling, 2021. "Investigation of entrepreneurial orientation development with airline employees: Moderating roles of a cooperation-competition mechanism," Journal of Air Transport Management, Elsevier, vol. 94(C).
    7. Thelle, Martin H. & Sonne, Mie la Cour, 2018. "Airport competition in Europe," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 232-240.

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