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Airport–airline interaction: the impact of low-cost carriers on two European airports

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  • Francis, Graham
  • Fidato, Alessandro
  • Humphreys, Ian

Abstract

This paper uses case studies to look at the impact of low-cost airlines on two European airports. Low-cost airlines continue to exert an influence in air transport markets and small airports face pressures to compete for their business. The low-cost model motivates airlines to negotiate contracts that significantly reduce aeronautical revenues, leaving airports to compensate by seeking commercial revenues from the increase in passengers. This has consequences for the airports, their passengers and the relationship between the airport and its existing operators. It is found that it is important for airport management to see both passengers and airlines as customers and to understand the resultant revenue streams, before negotiating preferential contracts with low-cost carriers.

Suggested Citation

  • Francis, Graham & Fidato, Alessandro & Humphreys, Ian, 2003. "Airport–airline interaction: the impact of low-cost carriers on two European airports," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 267-273.
    • Handle: RePEc:eee:jaitra:v:9:y:2003:i:4:p:267-273
    DOI: 10.1016/S0969-6997(03)00004-8
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    References listed on IDEAS

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    1. Williams, George, 2001. "Will Europe's charter carriers be replaced by “no-frills†scheduled airlines?," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 277-286.
    2. Vowles, Timothy M., 2001. "The “Southwest Effect†in multi-airport regions," Journal of Air Transport Management, Elsevier, vol. 7(4), pages 251-258.
    3. Barrett, Sean D, 2000. "Airport competition in the deregulated European aviation market," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 13-27.
    4. Graham Francis & Ian Humphreys, 2001. "Airport Regulation: Reflecting on the Lessons from BAA plc," Public Money & Management, Taylor & Francis Journals, vol. 21(1), pages 49-52, January.
    Full references (including those not matched with items on IDEAS)

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