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Airport-Airline interaction: some food for thought

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  • Tiziana D'alfonso
  • Alberto Nastasi

Abstract

We provide an interpretive analysis of vertical relations between airports and carriers, while assessing the way in which deregulation of the airline market and the privatization of airports have created incentives for airport-airline interaction. In particular, if the vertical structure approach has become the standard approach in air transport research, we add to the literature by discussing three issues that we believe need further understanding. The three issues that we think should be the focus of future research on airport-airline interaction are (i) incomplete contracts and asymmetric information structure; (ii) upstream horizontal complementarities; and (iii) airports as two-sided platforms.

Suggested Citation

  • Tiziana D'alfonso & Alberto Nastasi, 2014. "Airport-Airline interaction: some food for thought," Transport Reviews, Taylor & Francis Journals, vol. 34(6), pages 730-748, November.
  • Handle: RePEc:taf:transr:v:34:y:2014:i:6:p:730-748
    DOI: 10.1080/01441647.2014.971470
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    References listed on IDEAS

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    1. Tae H. Oum & Xiaowen Fu, 2008. "Impacts of Airports on Airline Competition: Focus on Airport Performance and Airport-Airline Vertical Relations," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/17, OECD Publishing.
    2. Itf, 2009. "Competitive Interaction between Airports, Airlines and High-Speed Rail," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/7, OECD Publishing.
    3. David Starkie, 2008. "The Airport Industry in a Competitive Environment: A United Kingdom Perspective," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/15, OECD Publishing.
    4. Tomás Serebrisky, 2003. "Market Power : Airports - Vertical Integration between Airports and Airlines," World Bank Publications - Reports 11304, The World Bank Group.
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    4. Álvarez-Sanjaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2020. "A three-stage competition game in an air transport network under asymmetric valuation of flight frequencies," Economics of Transportation, Elsevier, vol. 21(C).
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    6. Nerja, A. & Sánchez, M., 2021. "The effects of concession revenue sharing contracts in airport competition," Economics of Transportation, Elsevier, vol. 28(C).
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    8. Tiziana D'Alfonso & Valentina Bracaglia & Yulai Wan, 2015. "Airport cities and multiproduct pricing," DIAG Technical Reports 2015-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    9. D’Alfonso, Tiziana & Daraio, Cinzia & Nastasi, Alberto, 2015. "Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 20-38.
    10. Adrian Nerja, 2023. "An efficiency analysis of Spanish airports," Papers 2311.16156, arXiv.org.
    11. Kistler, Beat & Trischler, Jakob & Lohmann, Gui, 2018. "Passenger representation within the light-handed regulation – Insights from the Australian air transport market," Transport Policy, Elsevier, vol. 71(C), pages 106-115.
    12. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2016. "Airport capacity choice under airport-airline vertical arrangements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 298-309.
    13. Oliveira, Marcus V.R. & Oliveira, Alessandro V.M., 2018. "What drives effective competition in the airline industry? An empirical model of city-pair market concentration," Transport Policy, Elsevier, vol. 63(C), pages 165-175.
    14. Nerja, Adrián, 2023. "Can parallel airline alliances be welfare improving? The case of airline–airport vertical agreement," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    15. 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).
    16. Zheng, Shiyuan & Wang, Kun & Chan, Felix T.S. & Fu, Xiaowen & Li, Zhi-Chun, 2022. "Subsidy on transport adaptation investment-modeling decisions under incomplete information and ambiguity," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 103-129.
    17. Xu, Fangzhou & Hanaoka, Shinya, 2021. "Effects of airport terminal competition: A vertical structure approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    18. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    19. Karanki, Fecri, 2024. "Cross-subsidization and U.S. airports," Transport Policy, Elsevier, vol. 145(C), pages 150-160.
    20. Christina Nikolova & Veronika Garkova, 2022. "Evaluating the Impacts of Passengers’ Rights Policy on the Competitiveness of Airlines and Airport Operators Using the Dynamic Programming Approach," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 94-117.
    21. Bracaglia, Valentina & D׳Alfonso, Tiziana & Nastasi, Alberto, 2014. "Competition between multiproduct airports," Economics of Transportation, Elsevier, vol. 3(4), pages 270-281.
    22. Kidokoro, Yukihiro & Zhang, Anming, 2023. "Single-till regulation, dual-till regulation, and regulatory capture: When does a regulatory authority favor single-till regulation over dual-till regulation?," Economics of Transportation, Elsevier, vol. 33(C).
    23. Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Two-sided platforms in airport privatization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 262-278.
    24. Tsunoda, Yushi, 2023. "Airport concession revenue sharing and entry deterrence," Economics of Transportation, Elsevier, vol. 33(C).
    25. Zhang, Dapeng & (Cara) Wang, Xiaokun, 2018. "Understanding many-to-many matching relationship and its correlation with joint response," Transportation Research Part B: Methodological, Elsevier, vol. 108(C), pages 249-260.

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