Airport competition in Europe

Thelle, Martin H.; Sonne, Mie la Cour

doi:10.1016/j.jairtraman.2017.03.005

Cited by 61 publications

(29 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In addition, this expected incumbent cost behaviour would be reinforced by the removal of entrant capacity restrictions. Ultimately, the elimination of the competitive restraints at airports occurs parallel to the massive entry of LCCs (Bottasso et al, 2017;Wiltshire, 2018;Thelle and la Cour, 2018). Furthermore, in the period of transition to a deregulated airline environment, the incumbent fat cat strategy will cease to apply over time:…”

Section: Dynamic Switching Costs and Incumbent Cost Reaction To Entrymentioning

confidence: 99%

Competition in the Spanish domestic airline sector

Esper

Mas‐Ruiz

2019

ARLA

View full text Add to dashboard Cite

Purpose The purpose of this paper is to analyse the role of switching costs (SwCs) on established firm cost behaviour towards a competitive entry in the Spanish domestic airline market, taking into account the entrant profile and airport capacity restrictions. Design/methodology/approach The dynamic model is based on information of 193 Spanish domestic routes in which incumbents react to entrants (quarterly data during 10 years, 620 reactions are analysed). The balanced panel used is constructed by setting up a multiple-source database based on accounting and industrial engineering procedures. Findings Results show that both entrant profile and regulatory constraints conditions incumbent cost reaction (CR) to entry at the route-level. Regression models show that the relationship between SwCs and incumbent reaction is moderated by the entrant profile and the regulatory conditions of the market. Practical implications This study reveals the importance of policy measures aimed at reducing firm market power and increasing consumer protection in the airline industry, in which SwCs are artificially created at the company’s discretion and where operating costs at the route-level need to be evaluated together with the various service elements. Originality/value This study complements current literature related to incumbent CR to entry in the airline industry since it analyses the specific reaction performed by a carrier at the route-level. Moreover, it analyses the whole set of routes in the Spanish domestic market rather than a selection of it. It also explicitly includes three alternative measures of SwCs that can influence such incumbent reaction.

show abstract

Section: Dynamic Switching Costs and Incumbent Cost Reaction To Entrymentioning

confidence: 99%

Competition in the Spanish domestic airline sector

Esper

Mas‐Ruiz

2019

ARLA

View full text Add to dashboard Cite

show abstract

“…In recent years, the European aviation sector has gone through drastic change on both the supply and the demand side [13]. Airports are two-sided markets that bring together (and make revenue from) airlines on one side and passengers on the other [14]. As a result, the extent of airport market power depends on the ability and willingness of airlines and passengers to switch to other airports, and this particular feature complicates the standard competitive assessment since the joint constraints on the airport coming from both sides of the market need to be assessed [15].…”

Section: Transformations On the European Marketmentioning

confidence: 99%

Aviation market in Poland in 2000-2017

Caban

Ignaciuk²,

Stopka

et al. 2018

MATEC Web Conf.

View full text Add to dashboard Cite

The changes that have taken place over the last 3 decades on the market of air services in Europe have had an impact on the markets of individual regions. The paper presents short introduction to the issues of transformation on the European aviation market. The main purpose of this article is to present the development of the aviation market in Poland over the period 2000-2017. The data presented in the article comes from the reports of the Civil Aviation Office in Poland and International Civil Aviation Organization. Aviation market in Poland is becoming more and more popular and its further development is expected in the coming years. There is a great potential for small regional airports that are increasingly operating on the transport services market.

show abstract

“…This may be due to the relatively high level of competition, commercialisation, and private ownership of airports in Europe (e.g. see Thelle et al, 2012). An assumption, therefore, is that airports in Europe are more active than airports in the rest of the world.…”

Section: H2mentioning

confidence: 99%

Factors affecting airport route development activity and performance

Halpern

Graham

2016

Journal of Air Transport Management

View full text Add to dashboard Cite

Airports have become increasingly active in route development as a means of attracting, growing and retaining air services. However, little is known about the different levels of route development activity at airports, or the extent to which route development activity affects performance. Based on the findings of a survey of 124 airports worldwide, this study finds that larger airports are significantly more active than smaller airports. It also finds that private airports are more active than public airports, and that airports in Europe are more active than airports in other world regions, although differences according to ownership and location are not significant. Route development activity has a significant positive effect on performance. Factors associated with the airport business environment (market turbulence, competitive intensity, market growth and airport constraints) were not found to have a significant moderating effect on the relationship between route development activity and performance. However, two factors were found to have a significant direct effect on performance; market growth has a significant positive effect while airport constraints have a significant negative effect.

show abstract

Airport competition in Europe

Cited by 61 publications

References 4 publications

Competition in the Spanish domestic airline sector

Competition in the Spanish domestic airline sector

Aviation market in Poland in 2000-2017

Factors affecting airport route development activity and performance

Contact Info

Product

Resources

About