Institutional Changes and Dynamics in the European Aviation Sector

Abstract

This chapter covers three areas of institutional changes in the European aviation sector that may significantly affect the dynamics of the tourism industry. Further to the introduction, airlines are discussed in section two; airports are analysed in section three; and air navigation service provision are presented in section four. The dynamics of these three pillars and the interrelationship with the tourism industry is explored in section five. Among others, the chapter argues that when a proper systemic approach is followed any smart relaxation of regulatory and infrastructural constraints will have positive repercussions on tourism growth and development not only of central places but also of more peripheral regions. Finally, section six concludes and discusses the way forward.

Air traffic control policy framework advancements vis-à-vis regional airports

“…They also suggest that liberalisation allowed airlines to optimise their networks. Liberalisation in the area of airports had a similar effect (Efthymiou et al, 2016). What led to ANSPs becoming more efficient and cost-conscious was the ATM reforms.…”

“…The main components of the air transport system are airlines, airports and Air Navigation Service Providers (ANSPs) (Efthymiou et al, 2016). Remote regions are served primarily by regional airlines, which are not recognised by all analysts as a separate business model and are affiliated to FSNCs.…”

Solutions for Improving the Partnership Between Airport and Airline Companies

“…It can be noted that research is dominated by technical/technological and economic aspects -objectives. Regional airlines often opt for LCC's business model of profitability management and pricing: relocating to smaller airports that tend to promote new routes, co-finance, and thus lower entry barriers (Efthymiou et al, 2016). Each year, as the demand for air transport grows, airlines must decide which aircraft to operate on a particular route, what level of passenger service seems satisfactory, which route to take, and which strategic partner to choose (Dožić, 2019).…”

Evolving airline and airport business models

“…At the same time, the airports responded to the changing airline environment by adapting their infrastructure to the new needs and often changing their ownership structure (Efthymiou et al, 2016). High sunk costs of infrastructure combined with low marginal costs of processing extra passengers, forced airports to increase their passenger scale and diversify their travellers' profile by attracting both FSNCs and LCCs (Starkie, 2012;Francis et al, 2003).…”