Relevant market in commercial aviation of the european union

Abstract

INTRODUCTION-THE AIRLINE INDUSTRY IN THE EU With more than 130 scheduled airlines and a network of over 450 airports air transport makes a key contribution to the European economy. Every year, more than 800 million people in the EU travel by air. 1 During the summer holiday peak more than 30,000 scheduled flights take place daily. 2 The industry employs more than 3 million people and contributes more than EUR 120 bn to European GDP. 3 In commercial aviation there are two distinct models of transport with regard to route network organisation. These are the hub-and-spoke and point-to-point systems. The first is based on a system of large airports, hubs. In a nutshell, if a passenger wished to journey from point A to point B, he or she would use a regional airline to reach the nearest hub, from which travel then continues to the hub closest to the destination. The passenger would then use a regional airline to reach that destination. 4 The latter is based on an extensive network to allow connections between any of its points, any pair of cities. 5 Each system has its own advantages and disadvantages

Public Service Obligations in Air Transport Sector in the European Union

“…They require less flexibility and are willing to accept longer journey time 58 . This classification largely coincides with the distinction between business and leisure travellers 59 .…”