IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v50y2016icp68-82.html
   My bibliography  Save this article

The competitive landscape of air transport in Europe

Author

Listed:
  • Lieshout, Rogier
  • Malighetti, Paolo
  • Redondi, Renato
  • Burghouwt, Guillaume

Abstract

Competition between airlines and airports increased significantly since the deregulation of the intra-European air transport market in 1997. The passenger has a wider choice in terms of routings and departure airports than twenty-five years ago and pays a lower price. In this paper we investigate in which parts of Europe airline and airport competition are most intense and how the competitive landscape has changed since the liberalisation of the intra-European market.

Suggested Citation

  • Lieshout, Rogier & Malighetti, Paolo & Redondi, Renato & Burghouwt, Guillaume, 2016. "The competitive landscape of air transport in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 68-82.
    • Handle: RePEc:eee:jotrge:v:50:y:2016:i:c:p:68-82
    DOI: 10.1016/j.jtrangeo.2015.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692315000915
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2015.06.001?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
    ---><---

    References listed on IDEAS

    as
    1. Huse, Cristian & Evangelho, Fabio, 2007. "Investigating business traveller heterogeneity: Low-cost vs full-service airline users?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 259-268, May.
    2. Uittenbogaart, Peter, 1997. "Airline competition on the route between Amsterdam and London," Journal of Air Transport Management, Elsevier, vol. 3(4), pages 217-225.
    3. Veldhuis, Jan, 1997. "The competitive position of airline networks," Journal of Air Transport Management, Elsevier, vol. 3(4), pages 181-188.
    4. Gautam Gowrisankaran, 2002. "Competition and regulation in the airline industry," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jan18.
    5. Lijesen, Mark G., 2004. "Adjusting the Herfindahl index for close substitutes: an application to pricing in civil aviation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 123-134, March.
    6. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2012. "Competition in the European aviation market: the entry of low-cost airlines," Journal of Transport Geography, Elsevier, vol. 24(C), pages 223-233.
    7. Gillen, David & Lall, Ashish, 2004. "Competitive advantage of low-cost carriers: some implications for airports," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 41-50.
    8. Cohas, François J & Belobaba, Peter P & Simpson, Robert W, 1995. "Competitive fare and frequency effects in airport market share modeling," Journal of Air Transport Management, Elsevier, vol. 2(1), pages 33-45.
    9. Windle, Robert & Dresner, Martin, 1999. "Competitive responses to low cost carrier entry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 35(1), pages 59-75, March.
    10. Frédéric Dobruszkes, 2009. "Does liberalisation of air transport imply increasing competition? Lessons from the European case," ULB Institutional Repository 2013/95850, ULB -- Universite Libre de Bruxelles.
    11. Fischer, Thorsten & Kamerschen, David R., 2003. "Measuring Competition in the U.S. Airline Industry Using the Rosse-Panzar Test and Cross-Sectional Regression Analyses," Journal of Applied Economics, Universidad del CEMA, vol. 6(1), pages 1-21, May.
    12. Vowles, Timothy M., 2001. "The “Southwest Effect†in multi-airport regions," Journal of Air Transport Management, Elsevier, vol. 7(4), pages 251-258.
    13. Burghouwt, Guillaume & Hakfoort, Jacco, 2001. "The evolution of the European aviation network, 1990–1998," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 311-318.
    14. Reynolds-Feighan, Aisling, 2010. "Characterisation of airline networks: A North American and European comparison," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 109-120.
    15. Dobruszkes, Frédéric, 2009. "Does liberalisation of air transport imply increasing competition? Lessons from the European case," Transport Policy, Elsevier, vol. 16(1), pages 29-39, January.
    16. Dobruszkes, Frédéric, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," Transport Policy, Elsevier, vol. 18(6), pages 870-879, November.
    17. Jaap De Wit & Jan Veldhuis & Guillaume Burghouwt & Hidenobu Matsumoto, 2009. "Competitive Position Of Primary Airports In The Asia‐Pacific Rim," Pacific Economic Review, Wiley Blackwell, vol. 14(5), pages 639-650, December.
    18. Franke, Markus, 2004. "Competition between network carriers and low-cost carriers—retreat battle or breakthrough to a new level of efficiency?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 15-21.
    19. Zhang, Anming & Hanaoka, Shinya & Inamura, Hajime & Ishikura, Tomoki, 2008. "Low-cost carriers in Asia: Deregulation, regional liberalization and secondary airports," Research in Transportation Economics, Elsevier, vol. 24(1), pages 36-50.
    20. Lieshout, Rogier, 2012. "Measuring the size of an airport’s catchment area," Journal of Transport Geography, Elsevier, vol. 25(C), pages 27-34.
    21. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    22. Brueckner, Jan K. & Lee, Darin & Singer, Ethan S., 2013. "Airline competition and domestic US airfares: A comprehensivereappraisal," Economics of Transportation, Elsevier, vol. 2(1), pages 1-17.
    23. Mason, Keith J., 2005. "Observations of fundamental changes in the demand for aviation services," Journal of Air Transport Management, Elsevier, vol. 11(1), pages 19-25.
    24. Thorsten Fischer & David R. Kamerschen, 2003. "Measuring Competition in the U.S. Airline Industry Using the Rosse-Panzar Test and Cross-Sectional Regression Analyses," Journal of Applied Economics, Universidad del CEMA, vol. 6, pages 73-93, May.
    25. Frédéric Dobruszkes, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," ULB Institutional Repository 2013/96164, ULB -- Universite Libre de Bruxelles.
    26. Squalli, Jay, 2014. "Airline passenger traffic openness and the performance of Emirates Airline," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 138-145.
    27. Pels, Eric, 2009. "Network competition in the open aviation area," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 83-89.
    28. Goetz, Andrew R. & Vowles, Timothy M., 2009. "The good, the bad, and the ugly: 30 years of US airline deregulation," Journal of Transport Geography, Elsevier, vol. 17(4), pages 251-263.
    29. Steven A. Morrison, 2001. "Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 239-256, May.
    30. Kristopher S. Gerardi & Adam Hale Shapiro, 2009. "Does Competition Reduce Price Dispersion? New Evidence from the Airline Industry," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 1-37, February.
    31. Thorsten Fischer & David R. Kamerschen, 2003. "Measuring Competition in the U.S. Airline Industry Using the Rosse-Panzar Test and Cross-Sectional Regression Analyses," Journal of Applied Economics, Taylor & Francis Journals, vol. 6(1), pages 73-93, May.
    32. Pels, Eric, 2008. "Airline network competition: Full-service airlines, low-cost airlines and long-haul markets," Research in Transportation Economics, Elsevier, vol. 24(1), pages 68-74.
    33. 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.
    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. Maertens, Sven, 2018. "A metric to assess the competitive position of airlines and airline groups in the intra-European air transport market," Research in Transportation Economics, Elsevier, vol. 72(C), pages 65-73.
    2. Ugo Arrigo & Massimo Beccarello & Giacomo Di Foggia, 2023. "Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis," Administrative Sciences, MDPI, vol. 13(12), pages 1-14, December.
    3. Birolini, Sebastian & Cattaneo, Mattia & Malighetti, Paolo & Morlotti, Chiara, 2020. "Integrated origin-based demand modeling for air transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    4. Grosche, Tobias & Klophaus, Richard & Seredyński, Adam, 2020. "Market concentration in German air transport before and after the Air Berlin bankruptcy," Transport Policy, Elsevier, vol. 94(C), pages 78-88.
    5. Adler, Nicole & Brudner, Amir & Gallotti, Riccardo & Privitera, Filippo & Ramasco, José J., 2022. "Does big data help answer big questions? The case of airport catchment areas & competition," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 444-467.
    6. Qi Zhang & Bo Wang & Desheng Xue, 2022. "The Hub Competition in Delivering Air Connectivity between China and Oceania," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    7. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Rodríguez-Déniz, Héctor, 2017. "An assessment of the potential for self-connectivity at European airports in holiday markets," Tourism Management, Elsevier, vol. 62(C), pages 54-64.
    8. Pagliari, Romano & Graham, Anne, 2020. "Airport competition within the Scottish lowlands region," Research in Transportation Economics, Elsevier, vol. 79(C).
    9. Voltes-Dorta, Augusto & Becker, Eliad, 2018. "The potential short-term impact of a Hyperloop service between San Francisco and Los Angeles on airport competition in California," Transport Policy, Elsevier, vol. 71(C), pages 45-56.
    10. Avogadro, Nicolò & Pels, Eric & Redondi, Renato, 2023. "Policy impacts on the propensity to travel by HSR in the Amsterdam – London market," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    11. Lázaro Florido-Benítez, 2023. "The Role of the Top 50 US Cargo Airports and 25 Air Cargo Airlines in the Logistics of E-Commerce Companies," Logistics, MDPI, vol. 7(1), pages 1-27, February.
    12. Bringmann, Katja & De Langhe, Katrien & Kupfer, Franziska & Sys, Christa & Van de Voorde, Eddy & Vanelslander, Thierry, 2018. "Cooperation between airports: A focus on the financial intertwinement of European airport operators," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 59-71.
    13. 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.
    14. Birolini, Sebastian & Antunes, António Pais & Cattaneo, Mattia & Malighetti, Paolo & Paleari, Stefano, 2021. "Integrated flight scheduling and fleet assignment with improved supply-demand interactions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 162-180.
    15. Zeigler, Patrick & Pagliari, Romano & Suau-Sanchez, Pere & Malighetti, Paolo & Redondi, Renato, 2017. "Low-cost carrier entry at small European airports: Low-cost carrier effects on network connectivity and self-transfer potential," Journal of Transport Geography, Elsevier, vol. 60(C), pages 68-79.
    16. Birolini, Sebastian & Jacquillat, Alexandre & Cattaneo, Mattia & Antunes, António Pais, 2021. "Airline Network Planning: Mixed-integer non-convex optimization with demand–supply interactions," Transportation Research Part B: Methodological, Elsevier, vol. 154(C), pages 100-124.
    17. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Rodríguez-Déniz, Héctor, 2016. "Measuring the potential for self-connectivity in global air transport markets: Implications for airports and airlines," Journal of Transport Geography, Elsevier, vol. 57(C), pages 70-82.
    18. Jingjing Hao & Ling Zhang & Xiaofeng Ji & Xiaolong Wu & Lan Liu, 2020. "Investigating the Accessibility between Civil Airports and Tourist Locations in Tourist Cities in Yunnan Province, China," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    19. Klophaus, Richard & Lordan, Oriol, 2018. "Codesharing network vulnerability of global airline alliances," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 1-10.
    20. Avogadro, Nicolò & Cattaneo, Mattia & Paleari, Stefano & Redondi, Renato, 2021. "Replacing short-medium haul intra-European flights with high-speed rail: Impact on CO2 emissions and regional accessibility," Transport Policy, Elsevier, vol. 114(C), pages 25-39.
    21. Santos de Oliveira, Denise & Caetano, Mauro, 2019. "Market strategy development and innovation to strengthen consumer-based equity: The case of Brazilian airlines," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 103-110.
    22. Tolcha, Tassew Dufera & Tchouamou Njoya, Eric & Bråthen, Svein & Holmgren, Johan, 2021. "Effects of African aviation liberalisation on economic freedom, air connectivity and related economic consequences," Transport Policy, Elsevier, vol. 110(C), pages 204-214.
    23. Van Asch, Thomas & Dewulf, Wouter & Kupfer, Franziska & Cárdenas, Ivan & Van de Voorde, Eddy, 2020. "Cross-border e-commerce logistics – Strategic success factors for airports," Research in Transportation Economics, Elsevier, vol. 79(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. Dziedzic, Marcin & Njoya, Eric T. & Warnock-Smith, David & Hubbard, Nick, 2020. "Determinants of air traffic volumes and structure at small European airports," Research in Transportation Economics, Elsevier, vol. 79(C).
    2. Zhang, Qiong & Yang, Hangjun & Wang, Qiang & Zhang, Anming, 2014. "Market power and its determinants in the Chinese airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 1-13.
    3. Lieshout, Rogier, 2012. "Measuring the size of an airport’s catchment area," Journal of Transport Geography, Elsevier, vol. 25(C), pages 27-34.
    4. Güner, Samet & Cebeci, Halil İbrahim & Antunes, Jorge Junio Moreira & Wanke, Peter F., 2021. "Sustainable efficiency drivers in Eurasian airports: Fuzzy NDEA approach based on Shannon's entropy," Journal of Air Transport Management, Elsevier, vol. 92(C).
    5. Ma, Wenliang & Wang, Qiang & Yang, Hangjun & Zhang, Anming & Zhang, Yahua, 2019. "Effects of Beijing-Shanghai high-speed rail on air travel: Passenger types, airline groups and tacit collusion," Research in Transportation Economics, Elsevier, vol. 74(C), pages 64-76.
    6. Zeigler, Patrick & Pagliari, Romano & Suau-Sanchez, Pere & Malighetti, Paolo & Redondi, Renato, 2017. "Low-cost carrier entry at small European airports: Low-cost carrier effects on network connectivity and self-transfer potential," Journal of Transport Geography, Elsevier, vol. 60(C), pages 68-79.
    7. Lieshout, Rogier & Matsumoto, Hidenobu, 2012. "New international services and the competitiveness of Tokyo International Airport," Journal of Transport Geography, Elsevier, vol. 22(C), pages 53-64.
    8. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2015. "The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 141-157.
    9. Chen, Ruowei & Lei, Zheng, 2017. "Airport dominance and airline pricing power: An investigation of hub premiums in the Chinese domestic market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 509-524.
    10. Koopmans, Carl & Lieshout, Rogier, 2016. "Airline cost changes: To what extent are they passed through to the passenger?," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 1-11.
    11. Ng, Kam To & Fu, Xiaowen & Lee, Jaewoon & Yamaguchi, Katsuhiro & Zhu, Chuanyan, 2023. "The Effects of Bankruptcy on Airline Yield and Frequency: The case of the duopolistic domestic market in Japan," Transport Policy, Elsevier, vol. 142(C), pages 28-36.
    12. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Pedregal, Diego J., 2012. "What role will hubs play in the LCC point-to-point connections era? The Spanish experience," Journal of Transport Geography, Elsevier, vol. 24(C), pages 262-270.
    13. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2012. "Competition in the European aviation market: the entry of low-cost airlines," Journal of Transport Geography, Elsevier, vol. 24(C), pages 223-233.
    14. 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).
    15. Wang Liao & Xiaoshu Cao & Shengchao Li, 2019. "Competition and Sustainability Development of a Multi-Airport Region: A Case Study of the Guangdong–Hong Kong–Macao Greater Bay Area," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    16. Wei, Fangwu & Grubesic, Tony H., 2015. "The dehubbing Cincinnati/Northern Kentucky International Airport (CVG): A spatiotemporal panorama," Journal of Transport Geography, Elsevier, vol. 49(C), pages 85-98.
    17. Maertens, Sven, 2018. "A metric to assess the competitive position of airlines and airline groups in the intra-European air transport market," Research in Transportation Economics, Elsevier, vol. 72(C), pages 65-73.
    18. Kim, Amy M. & Ryerson, Megan S., 2018. "A long drive: Interregional airport passenger “leakage” in the U.S," Tourism Management, Elsevier, vol. 65(C), pages 237-244.
    19. Wei, Fangwu & Grubesic, Tony H., 2016. "The pain persists: Exploring the spatiotemporal trends in air fares and itinerary pricing in the United States, 2002–2013," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 107-121.
    20. David Ramos-Pérez & José Luis Sánchez-Hernández, 2014. "European World Cities and the Spatial Polarisation of Air Transport Liberalisation Benefits," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(1), pages 1-29, February.

    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:jotrge:v:50:y:2016:i:c:p:68-82. 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: https://www.journals.elsevier.com/journal-of-transport-geography .

    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.