IDEAS home Printed from
   My bibliography  Save this article

Airport Incentive Programmes: A European Perspective


  • Robert Malina
  • Sascha Albers
  • Nathalie Kroll


This study investigates the current pricing practices at 200 airports in the European Union (EU). The analysis shows that airport incentive programmes, which are used in one-third of all airports, are generally a common tool of airport pricing. This study also finds evidence of bilateral agreements between airport operators or regional authorities, on the one hand, and airlines, on the other hand, that substitute for published incentive programmes. Geographically, the usage of these different tools varies substantially between different EU countries. A detailed assessment of the incentive schemes offered at German airports within our broader European sample reveals that the average level of landing and take-off, parking and positioning, and passenger charges is generally reduced by more than 10%. The highest reduction amounts to 44%. Given the usually low profit margin of airlines and that airport charges account for up to 10% of the total operating costs, these incentives can have an important influence on the economic viability of a route. Moreover, in an airline's multi-criteria-based assessment of potential market entries or route expansions, such incentive schemes might compensate for selected weaknesses of an airport's strategic position.

Suggested Citation

  • Robert Malina & Sascha Albers & Nathalie Kroll, 2012. "Airport Incentive Programmes: A European Perspective," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 435-453, April.
  • Handle: RePEc:taf:transr:v:32:y:2012:i:4:p:435-453 DOI: 10.1080/01441647.2012.684223

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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

    Other versions of this item:

    References listed on IDEAS

    1. David Starkie, 2001. "Reforming UK Airport Regulation," Journal of Transport Economics and Policy, University of Bath, vol. 35(1), pages 119-135, January.
    2. Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
    3. Richard K. Green, 2007. "Airports and Economic Development," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(1), pages 91-112, March.
    4. Johannes Fuhr & Thorsten Beckers, 2008. "Contract Design, Financing Arrangements and Public Ownership—An Assessment of the US Airport Governance Model," Transport Reviews, Taylor & Francis Journals, vol. 29(4), pages 459-478, September.
    5. Marco Percoco, 2010. "Airport Activity and Local Development: Evidence from Italy," Urban Studies, Urban Studies Journal Limited, vol. 47(11), pages 2427-2443, October.
    6. Barbot, Cristina, 2006. "Low-cost airlines, secondary airports, and state aid: An economic assessment of the Ryanair–Charleroi Airport agreement," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 197-203.
    7. Gillen, David, 2011. "The evolution of airport ownership and governance," Journal of Air Transport Management, Elsevier, vol. 17(1), pages 3-13.
    8. Gillen, David & Hinsch, Holger, 2001. "Measuring the economic impact of liberalization of international aviation on Hamburg airport," Journal of Air Transport Management, Elsevier, vol. 7(1), pages 25-34.
    9. Varian, Hal R, 1985. "Price Discrimination and Social Welfare," American Economic Review, American Economic Association, vol. 75(4), pages 870-875, September.
    10. Friedrich Gröteke & Wolfgang Kerber, 2004. "The Case of Ryanair – EU State Aid Policy on the Wrong Runway," Marburg Working Papers on Economics 200413, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Warnock-Smith, David & Potter, Andrew, 2005. "An exploratory study into airport choice factors for European low-cost airlines," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 388-392.
    12. Lohmann, Guilherme & Albers, Sascha & Koch, Benjamin & Pavlovich, Kathryn, 2009. "From hub to tourist destination – An explorative study of Singapore and Dubai's aviation-based transformation," Journal of Air Transport Management, Elsevier, vol. 15(5), pages 205-211.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. repec:eee:jaitra:v:66:y:2018:i:c:p:65-75 is not listed on IDEAS
    2. Wittman, Michael D. & Allroggen, Florian & Malina, Robert, 2016. "Public service obligations for air transport in the United States and Europe: Connectivity effects and value for money," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 112-128.
    3. repec:gam:jsusta:v:9:y:2017:i:8:p:1295-:d:105757 is not listed on IDEAS
    4. repec:eee:touman:v:65:y:2018:i:c:p:237-244 is not listed on IDEAS
    5. Allroggen, Florian & Malina, Robert & Lenz, Ann-Katrin, 2013. "Which factors impact on the presence of incentives for route and traffic development? Econometric evidence from European airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 49-61.
    6. Estelle Malavolti & Frédéric Marty, 2017. "State Aids granted by regional airports: a two-sided market analysis," Post-Print halshs-01538698, HAL.
    7. Ramos-Pérez, David, 2016. "State aid to airlines in Spain: An assessment of regional and local government support from 1996 to 2014," Transport Policy, Elsevier, vol. 49(C), pages 137-147.
    8. Núñez-Sánchez, Ramón, 2015. "Regional public support to airlines and airports: An unsolved puzzle," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 93-107.
    9. Wittman, Michael D., 2014. "Public funding of airport incentives in the United States: The efficacy of the Small Community Air Service Development Grant program," Transport Policy, Elsevier, vol. 35(C), pages 220-228.
    10. repec:eee:touman:v:46:y:2015:i:c:p:213-221 is not listed on IDEAS
    11. Klein, Klemens & Albers, Sascha & Allroggen, Florian & Malina, Robert, 2015. "Serving vs. settling: What drives the establishment of low-cost carriers’ foreign bases?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 17-30.
    12. Allroggen, Florian & Wittman, Michael D. & Malina, Robert, 2015. "How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 184-201.
    13. repec:eee:transa:v:106:y:2017:i:c:p:116-129 is not listed on IDEAS

    More about this item


    Access and download statistics


    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:taf:transr:v:32:y:2012:i:4:p:435-453. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.