IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v67y2018icp232-240.html
   My bibliography  Save this article

Airport competition in Europe

Author

Listed:
  • Thelle, Martin H.
  • Sonne, Mie la Cour

Abstract

This paper analyses the development in competitive constraints faced by European airports resulting from the wide-ranging changes to the European aviation market over the last twenty years, encompassing deregulation of airline markets and more cost focused airline business models. We argue that the flexibility and choices now available to airlines constrain the commercial behavior of airports. The main change driving these competitive constraints is that the wealth of opportunities available to airlines have made them more footloose. In addition to this, passengers have more choice available to them, and airports are actively responding to market changes. The result is that airports now largely have to compete with one another to retain and attract traffic. The marked development of airport competition in Europe leads us to recommend that policy makers use a more case-by-case approach to economic regulation of airports. In particular, market power should be established, not assumed.

Suggested Citation

  • Thelle, Martin H. & Sonne, Mie la Cour, 2018. "Airport competition in Europe," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 232-240.
    • Handle: RePEc:eee:jaitra:v:67:y:2018:i:c:p:232-240
    DOI: 10.1016/j.jairtraman.2017.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699717301266
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2017.03.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven Berry & Panle Jia, 2010. "Tracing the Woes: An Empirical Analysis of the Airline Industry," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 1-43, August.
    2. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2012. "Online and Offline Demand and Price Elasticities: Evidence from the Air Travel Industry," Information Systems Research, INFORMS, vol. 23(1), pages 164-181, March.
    3. Bush, Harry & Starkie, David, 2014. "Competitive drivers towards improved airport/airline relationships," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 45-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lai, Y.Y. & Christley, E. & Kulanovic, A. & Teng, C.C. & Björklund, A. & Nordensvärd, J. & Karakaya, E. & Urban, F., 2022. "Analysing the opportunities and challenges for mitigating the climate impact of aviation: A narrative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    2. Bergantino, Angela Stefania & Intini, Mario & Volta, Nicola, 2021. "The spatial dimension of competition among airports at the worldwide level: a spatial stochastic frontier analysis," European Journal of Operational Research, Elsevier, vol. 295(1), pages 118-130.
    3. Pagliari, Romano & Graham, Anne, 2019. "An exploratory analysis of the effects of ownership change on airport competition," Transport Policy, Elsevier, vol. 78(C), pages 76-85.
    4. Pot, Felix Johan & Koster, Sierdjan, 2022. "Small airports: Runways to regional economic growth?," Journal of Transport Geography, Elsevier, vol. 98(C).
    5. Olufunto Adedotun Kanyio & Taofeek Kolawole Gbadamosi & Felix Kayode Omole, 2023. "Airport Changing Business Model and Density of Economic Activities," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 364-375, February.
    6. Nicolò Avogadro & Sebastian Birolini & Mattia Cattaneo & Paolo Malighetti & Chiara Morlotti & Renato Redondi, 2020. "Yardstick Regulation in a Competitive Context? The Case of the Italian Airports," Competition and Regulation in Network Industries, , vol. 21(3), pages 244-274, September.
    7. Zhang, Hanxiang & Czerny, Achim I. & Grimme, Wolfgang & Niemeier, Hans-Martin, 2023. "The big three EU Low Cost Carriers before and during the Covid-19 pandemic: Network overlaps and airfare effects," Research in Transportation Economics, Elsevier, vol. 97(C).
    8. Oster, Clinton & Strong, John, 2021. "Economic effects of shifting airport activity in the Los Angeles metro region," Research in Transportation Economics, Elsevier, vol. 88(C).
    9. 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).
    10. Borbely, Daniel, 2019. "A case study on Germany’s aviation tax using the synthetic control approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 377-395.
    11. Yu Morimoto∗, 2019. "Demand Leakage from a Local Small Airport to a Regional Main Airport," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 5(1), pages 36-42.
    12. Volodymyr Bilotkach & Harry Bush, 2020. "Airport competition from airports’ perspective: Evidence from a survey of European airports," Competition and Regulation in Network Industries, , vol. 21(3), pages 275-296, September.
    13. Choi, Jong Hae & Wang, Kun & Xia, Wenyi & Zhang, Anming, 2019. "Determining factors of air passengers’ transfer airport choice in the Southeast Asia – North America market: Managerial and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 203-216.
    14. Colak, Ozlem & Enoch, Marcus & Morton, Craig, 2023. "Airport business models and the COVID-19 pandemic: An exploration of the UK case study," Journal of Air Transport Management, Elsevier, vol. 108(C).
    15. Pagliari, Romano & Graham, Anne, 2020. "Airport competition within the Scottish lowlands region," Research in Transportation Economics, Elsevier, vol. 79(C).
    16. Lázaro Florido-Benítez, 2023. "A Bibliometric Overview of the International Airports and Airlines ‘IAA’ Topic in Journals and Scientific Community," Logistics, MDPI, vol. 7(3), pages 1-25, June.
    17. Silva, Thiago Christiano & Dias, Felipe A.M. & dos Reis, Vinicius E. & Tabak, Benjamin M., 2022. "The role of network topology in competition and ticket pricing in air transportation: Evidence from Brazil," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 601(C).
    18. Teixeira, Filipe Marques & Derudder, Ben, 2021. "Spatio-temporal dynamics in airport catchment areas: The case of the New York Multi Airport Region," Journal of Transport Geography, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hotle, Susan L. & Castillo, Marco & Garrow, Laurie A. & Higgins, Matthew J., 2015. "The impact of advance purchase deadlines on airline consumers’ search and purchase behaviors," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 1-16.
    2. Salmani, Yasamin & Partovi, Fariborz Y., 2021. "Channel-level resource allocation decision in multichannel retailing: A U.S. multichannel company application," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    3. Ting Li & Robert J. Kauffman & Eric van Heck & Peter Vervest & Benedict G. C. Dellaert, 2014. "Consumer Informedness and Firm Information Strategy," Information Systems Research, INFORMS, vol. 25(2), pages 345-363, June.
    4. Hickman, William & Mortimer, Julie Holland, 2016. "Demand Estimation with Availability Variation," SocArXiv qe69j, Center for Open Science.
    5. Rodrigo V. Ventura & Manoela Cabo & Rafael Caixeta & Elton Fernandes & Vicente Aprigliano Fernandes, 2020. "Air Transportation Income and Price Elasticities in Remote Areas: The Case of the Brazilian Amazon Region," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    6. Redondi, Renato & Birolini, Sebastian & Morlotti, Chiara & Paleari, Stefano, 2021. "Connectivity measures and passengers’ behavior: Comparing conventional connectivity models to predict itinerary market shares," Journal of Air Transport Management, Elsevier, vol. 90(C).
    7. Philip G. Gayle, 2013. "On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated?," American Economic Journal: Microeconomics, American Economic Association, vol. 5(4), pages 244-273, November.
    8. Yang, Hangjun & Ma, Wenliang & Wang, Qiang & Wang, Kun & Zhang, Yahua, 2020. "Welfare implications for air passengers in China in the era of high-speed rail," Transport Policy, Elsevier, vol. 95(C), pages 1-13.
    9. Hwa Ryung Lee, 2010. "Bankruptcy and low cost carrier expansion in the airline industry," IEW - Working Papers 502, Institute for Empirical Research in Economics - University of Zurich.
    10. Yan, Jia & Winston, Clifford, 2014. "Can private airport competition improve runway pricing? The case of San Francisco Bay area airports," Journal of Public Economics, Elsevier, vol. 115(C), pages 146-157.
    11. Ivaldi, Marc & Sokullu, Senay & Toru, Tuba, 2015. "Airport Prices in a Two-Sided Market Setting: Major US Airports," CEPR Discussion Papers 10658, C.E.P.R. Discussion Papers.
    12. Puller, Steven L. & Taylor, Lisa M., 2012. "Price discrimination by day-of-week of purchase: Evidence from the U.S. airline industry," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 801-812.
    13. Akindele Olawale Olamide, 2018. "Foreign Exchange Market Efficiency in Nigeria (The Past and Current Exchange Rate Returns)," Sumerianz Journal of Economics and Finance, Sumerianz Publication, vol. 1(1), pages 14-21, 06-2018.
    14. Marcu, Emanuel & Noussair, Charles, 2018. "Sequential Search with a Price Freeze Option - Theory and Experimental Evidence," Other publications TiSEM dacf4815-c001-44c3-bda3-f, Tilburg University, School of Economics and Management.
    15. Jun Li & Nelson Granados & Serguei Netessine, 2014. "Are Consumers Strategic? Structural Estimation from the Air-Travel Industry," Management Science, INFORMS, vol. 60(9), pages 2114-2137, September.
    16. Sim Justina & Poh Lip Hang & Tay Calvin, 2016. "Do Retail MFN Clauses Lead to Softening of Competition?," Asian Journal of Law and Economics, De Gruyter, vol. 7(1), pages 101-145, April.
    17. Stephen Martin, 2012. "Market Structure and Market Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(2), pages 87-108, March.
    18. Gaurab Aryal & Federico Ciliberto & Benjamin T Leyden, 2022. "Coordinated Capacity Reductions and Public Communication in the Airline Industry [Exchangees of Cost Information in the Airline Industry]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3055-3084.
    19. 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.
    20. Ciliberto, Federico & Williams, Jonathan, 2010. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conjectural Parameters in the Airline Industry," MPRA Paper 24888, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:67:y:2018:i:c:p:232-240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.