IDEAS home Printed from https://ideas.repec.org/p/rim/rimwps/48_11.html
   My bibliography  Save this paper

Low Cost Carriers and Airports Performance: Empirical Evidence from a Panel of UK Airports

Author

Listed:
  • Anna Bottasso

    (University of Genoa)

  • Maurizio Conti

    (University of Genoa)

  • Claudio A. Piga

    (Loughborough University; RCEA)

Abstract

During the last decade, the proliferation of Low Cost Carriers and the related huge increase in traffic has been the most visible effect of the deregulation of the airline market in Europe. Little attention has been paid to how airports were affected by the changes in the new institutional environment. In this study we model the total factor productivity (TFP) for a panel of the UK largest airports over the 2002-2005 period and investigate whether the presence of LCCs has some impact on airports' TFP. Empirical results are consistent with the hypothesis that conspicuous entry of LCCs on European markets has impacted positively on the vertical chain by facilitating airports' productivity improvements. This result is robust to reverse causality issues associated with the possibility that most efficient airports are those that are more likely to attract LCCs. Different possible arguments may explain our results: traffic increases brought about by LCCs for a given installed capacity might have generated higher TFP; more efficient organizational models might have been adopted to meet LCCs operational requirements (short turnaround times); cost reductions might have been realized in order to lower charges and attract LCCs; competition from a larger number of airports induced by LCCs' wider catchment areas (with respect to full service airlines) might have exerted further pressure toward TFP improvements.

Suggested Citation

  • Anna Bottasso & Maurizio Conti & Claudio A. Piga, 2011. "Low Cost Carriers and Airports Performance: Empirical Evidence from a Panel of UK Airports," Working Paper series 48_11, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:48_11
    as

    Download full text from publisher

    File URL: http://www.rcea.org/RePEc/pdf/wp48_11.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

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


    Cited by:

    1. Augustyniak, Wojciech & López-Torres, Laura & Kalinowski, Sławomir, 2015. "Performance of Polish regional airports after accessing the European Union: Does liberalisation impact on airports' efficiency?," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 11-19.
    2. repec:kap:regeco:v:52:y:2017:i:1:d:10.1007_s11149-017-9332-z is not listed on IDEAS
    3. Choo, Yap Yin & Oum, Tae Hoon, 2013. "Impacts of low cost carrier services on efficiency of the major U.S. airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 60-67.

    More about this item

    Keywords

    Total Factor Productivity; Airports; LCCs;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:rim:rimwps:48_11. 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: (Marco Savioli). General contact details of provider: http://edirc.repec.org/data/rcfeait.html .

    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.

    We have no references for this item. You can help adding them by using 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.