By Peter Forsyth, David Gillen, Jurgen Muller, Hans-Martin Niemeier
The break-up of BAA, the blocked takeover of Bratislava airport by means of the competing Vienna airport and the prohibited subsidy of Ryanair via Brussels South Charleroi Airport have introduced the problem of airport festival to the pinnacle of the schedule for air delivery coverage in Europe. "Airport pageant" reports the present country of the talk and asks no matter if airport festival is powerful adequate to successfully restrict marketplace energy. It offers proof on how guests selected an airport, thereby changing its aggressive place, and on how airports compete in several areas and markets. The ebook additionally discusses the most coverage implications of mergers and subsidies.
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An airline can compete in more origin-destination markets if its services are part of a larger network, including good surface access links. It often has little control over these links, but does have the option to operate them itself. Integrated carriers such as FedEx offer door-to-door transport by operating its own fleet of delivery trucks (see also Gillen and Morrison, 2003). This differentiates it from traditional air cargo airlines. Few airlines have done the same for passengers, one exception being Virgin Atlantic, which included limousine door-to-door pick-up and set-down services for premium-class passengers.
The same argument is applied to capital support, say, for rail or road access to the airport. However, it is difficult to argue that state support for a high-speed rail interchange at a major airport such as Amsterdam is part of regional economic policy. It may distort competition for attracting new airlines, but it is part of EU policy and the facilities will benefit both existing and new operators at the airport. References ACI Europe (1999). ‘European airports: a competitive industry’. Policy paper submitted by the ACI Europe Policy Committee, 22 October.
Nor is the scepticism rooted in a distrust of competition. Of course, perfect and perhaps even less intense competition is superior to regulation. Rather, the scepticism is based on the belief that despite these recent changes, competition is still minimal and not sufficient to prevent airports from abusing their market power (Forsyth, 2006). We would like to stress that this is our opinion as there is little empirical evidence on the intensity of competition among airports. As airport competition is a complex phenomenon, we prefer in this chapter to analyse two specific, but very prominent, aspects of competition: market entry and exit.
Airport competition: the European experience by Peter Forsyth, David Gillen, Jurgen Muller, Hans-Martin Niemeier