By Peter Forsyth, David Gillen, Jurgen Muller, Hans-Martin Niemeier
The break-up of BAA, the blocked takeover of Bratislava airport via the competing Vienna airport and the prohibited subsidy of Ryanair by way of Brussels South Charleroi Airport have introduced the difficulty of airport pageant to the pinnacle of the schedule for air delivery coverage in Europe. "Airport pageant" stories the present kingdom of the talk and asks no matter if airport festival is robust sufficient to successfully restrict industry energy. It presents facts on how travelers selected an airport, thereby changing its aggressive place, and on how airports compete in numerous areas and markets. The booklet additionally discusses the most coverage implications of mergers and subsidies.
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Additional info for Airport competition: the European experience
These airport specific variables are important, especially for short-haul trips by air, but not the only ones that determine travel demand and the passenger’s choice of airport (see Mandel, 1997 for a fuller discussion). ACI Europe (1999) identified different forms of competition or ‘perceptions of competition’ between airports: • • • • • • competition to attract new services; competition between airports with overlapping hinterlands; competition for a role as a hub airport and for transfer traffic between hubs; competition between airports within urban areas; competition for the provision of services at airports; competition between airport terminals.
Even in cases where governments own the majority of an airport, they often corporatise the airport and bring in private-sector management. Where the airport is majority owned by private interests, one would expect a more formal and transparent approach to economic regulation of airport services. That is certainly the case for the BAA in the UK, but less so for Copenhagen Airport. Even where the state owns the airport, economic regulation is carried out at either central or regional level by the appropriate arm of government.
Both motives have been at work in Germany and France (Gillen and Niemeier, 2006). Privatization has also created a market in airport business assets. Financial investors are now looking for business opportunities in the airport industry – something unheard of prior to privatization. The capital market in airport assets has two implications for entry and exit in the airport industry. Firstly, profit opportunities should be sought out so that in this respect the airport industry (slowly) becomes more like an ordinary industry.