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Airport competition – Regional airports losing ground to main airports

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  • Lian, Jon Inge
  • Rønnevik, Joachim

Abstract

Regional airports in Norway are losing market shares to nearby main airports on flights to the national capital, Oslo, and on international travel via Oslo. Travellers are willing to spend several hours extra driving to a larger airport in order to take advantage of lower fares and more convenient airline services. Traffic leakage from regional airports is high when the service from the regional airport is indirect and fare differences are large. Public service obligation tenders (PSO) set maximum fares on the regional legs, but do not cover through travel from regional airports which involve commercial legs. Traffic leakage is particularly evident in the leisure segment. Leakage levels tend to increase as competition is intensified at main airports, but the evidence is rather mixed. Logistic curves of airport market shares have proven to be useful when comparing spatial variations in leakage levels.

Suggested Citation

  • Lian, Jon Inge & Rønnevik, Joachim, 2011. "Airport competition – Regional airports losing ground to main airports," Journal of Transport Geography, Elsevier, vol. 19(1), pages 85-92.
  • Handle: RePEc:eee:jotrge:v:19:y:2011:i:1:p:85-92
    DOI: 10.1016/j.jtrangeo.2009.12.004
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    File URL: http://www.sciencedirect.com/science/article/pii/S0966692309001835
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    17. de Paula, R.O. & Silva, L.R. & Vilela, M.L. & Cruz, R.O.M., 2019. "Forecasting passenger movement for Brazilian airports network based on the segregation of primary and secondary demand applied to Brazilian civil aviation policies planning," Transport Policy, Elsevier, vol. 77(C), pages 23-29.
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    20. Morimoto, Yu, 2020. "Do citizens of a city that owns a local public airport have attachment to the airport and use it?," MPRA Paper 103442, University Library of Munich, Germany.
    21. Sulmona, Luigi G. & Edgington, David W. & Denike, Ken, 2014. "The role of Advanced Border Controls at Canadian airports," Journal of Transport Geography, Elsevier, vol. 39(C), pages 11-20.
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