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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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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 43 (2009)
Issue (Month): 1 (January)
Pages: 105-122

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Handle: RePEc:tpe:jtecpo:v:43:y:2009:i:1:p:105-122

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Web page: http://www.bath.ac.uk/e-journals/jtep

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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. 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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