Factors Explaining Charges in European Airports: Competition, Market Size, Private Ownership and Regulation
AbstractThis paper examines factors determining airport charges. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and nearby airports imposes some discipline on the pricing behavior of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. We also find that private airports not regulated charge higher prices than public or regulated airports. Finally, the regulation mechanism does not seem to influence substantially the level of airport charges.
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Bibliographic InfoPaper provided by FEDEA in its series Working Papers with number 2009-31.
Date of creation: Nov 2009
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