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The Airport Industry in a Competitive Environment: A United Kingdom Perspective

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  • David Starkie
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    Abstract

    The paper provides an overview of UK airports from the perspective of a business enterprise. Its object is to show, through the medium of the UK industry, that effective competition between airports is possible and that a competitive industry can be financially viable. In the UK case viability is achieved at all levels of output, thus refuting the suggestion that high fixed costs are a significant barrier to positive returns, particularly for airports of limited output. This viable industry operates for the most part in the private sector of the economy and it has evolved without the imposition of a strategic plan. It is competition that has driven the dynamics of the industry, an industry that in its symbiotic relationship with the airline industry has been an economic success story helping to produce strong economic growth in the service sector of the UK economy.

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    File URL: http://dx.doi.org/10.1787/235251766646
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD/ITF Joint Transport Research Centre Discussion Papers with number 2008/15.

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    Date of creation: Jul 2008
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    Handle: RePEc:oec:itfaaa:2008/15-en

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    Cited by:
    1. D’Alfonso, Tiziana & Nastasi, Alberto, 2012. "Vertical relations in the air transport industry: A facility-rivalry game," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 48(5), pages 993-1008.
    2. Zhang, Anming & Fu, Xiaowen & Yang, Hangjun (Gavin), 2010. "Revenue sharing with multiple airlines and airports," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 44(8-9), pages 944-959, September.
    3. Tiziana D'Alfonso & Alberto Nastasi, 2010. "Vertical Agreements Between Airports And Carriers," DIS Technical Reports, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza" 2010-19, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    4. Bilotkach, Volodymyr & Clougherty, Joseph A. & Mueller, Juergen & Zhang, Anming, 2011. "Regulation, Privatization, and Airport Charges: Panel Data Evidence from European Airports," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8618, C.E.P.R. Discussion Papers.
    5. Jun Ishii & Sunyoung Jun & Kurt Van Dender, 2006. "Air Travel Choices in Multi-Airport Markets," Working Papers 050622, University of California-Irvine, Department of Economics.
    6. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 51(3), pages 773-824, September.
    7. Littlechild, Stephen C., 2012. "German airport regulation: Framework agreements, civil law and the EU Directive," Journal of Air Transport Management, Elsevier, Elsevier, vol. 21(C), pages 63-75.
    8. Barbot, Cristina & D’Alfonso, Tiziana & Malighetti, Paolo & Redondi, Renato, 2013. "Vertical collusion between airports and airlines: An empirical test for the European case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 57(C), pages 3-15.
    9. Anna Bottasso & Maurizio Conti, 2010. "An Assessment on the Cost Structure of the UK Airport Industry: Ownership Outcomes and Long Run Cost Economies," Working papers, Former Department of Economics and Public Finance "G. Prato", University of Torino 13, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    10. Assaf, A. George & Gillen, David & Barros, Carlos, 2012. "Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 48(3), pages 603-615.
    11. Fröhlich, Karsten & Niemeier, Hans-Martin, 2011. "The importance of spatial economics for assessing airport competition," Journal of Air Transport Management, Elsevier, Elsevier, vol. 17(1), pages 44-48.

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