Article
INTEGRATION AND CONCENTRATION OF EUROPEAN AIR TRANSPORT MARKET
DOI: 10.7708/ijtte.2013.3(2).08
3 / 2 / 204-219 Pages
Author(s)
Luca Mantecchini - DICAM – Transportation, Faculty of Engineering, University of Bologna, Italy -
Abstract
During the last years air transport stakeholder’s behaviors have witnessed deep modifications. Airlines competition has been exacerbated by economic downturns, while airport competition emerged as a result of the less governmental intervention in airport investments. The first result of this process is a mix-model adopted by EU airlines in the domestic market, which implies that network airlines have adopted few of the strategies that have guaranteed the establishment of the low fares carriers, while low cost carriers have been continuously increasing the number of major airport served. The volatility of the air transport deregulated market has been analysed in the scientific literature and these aspects can be perceived as further evidences of the increased volatility. In order to limit the negative effects of volatility in the EU market, air transport players have been sought manners to enhance stability. Airlines mergers or acquisitions, buyout of airport operator’s shares by airlines, airport-airline partnership for ad-hoc infrastructure development or buyout of airport’s shares by other airport operators are examples of this will for a greater stability of the system. This paper analyses all these aspects highlighting the pursuing of greater stability by the fragile EU air transport system.
Number of downloads: 5604
References:
Air France-KLM. Full year results 2005-06. Available from Internet: http://www.airfranceklm-finance.com.
Ash, J.F. 2002. Airlines alliances – much to be gained, but risks abound. Global Aviation Associates Ltd.
CERTeT. 2005. Indicatore di accessibilità continentale, Unioncamere Lombardia, Italy. 22 p.
Doganis, R. 2010. Flying off course – Airline economics and marketing. Routledge, London and New York. 349 p.
Fan, T.; Langlois, L.V.; Geissler, C.; Bosler, B.; Wilmking, J. 2001. Evolution of global airline strategic alliance and consolidation in the twenty-first century, Journal of Air Transport Management. DOI: http://dx.doi.org/10.1016/S0969-6997(01)00027-8, 7(6): 349-360.
Francis, G.; Humphreys, I.; Ison, S. 2004. Airports’ perspectives on the growth of low-cost airlines and the remodelling of the airport-airline relationship, Tourism Management. DOI: http://dx.doi.org/10.1016/S0261-5177(03)00121-3, 25(4): 507-514.
Goetsch, B.; Albers, S. 2007. Towards a model of airportairline interaction. In Proceedings of the 11th ATRS World Conference, Berkeley, USA. 1-20.
Graham, A. 2004. Airport strategies to gain competitive advantage. In Proceedings of German Aviation Research Society – Slots, airport competition and benchmarking of airports, Bremen, Germany. 1-16.
Graham, A. 2008. Managing airports – An international perspective. Elsevier/Butterworth-Heinemann, Oxford UK. 333 p.
Grebenšek, A.; Magister, T. 2012. Traffic variability in benchmarking of air navigation services providers cost-effectiveness, International Journal for Traffic and Transport Engineering. DOI: http://dx.doi.org/10.7708/ijtte.2012.2(3).03, 2(3): 185-201.
Iatrou, K.; Alamdari, F. 2005. The empirical analysis of the impact of alliances on airline operations, Journal of Air Transport Management. DOI: http://dx.doi.org/10.1016/j.jairtraman.2004.07.005, 11(3): 127-134.
Oum, T.H.; Fu, X. 2008. Impacts of airports on airline competition: focus on airport performance and airportairline vertical relations. Discussion paper no. 17, International Transport Forum. 37 p.
Serebrisky, T. 2003. Market power: airports – vertical integration between airports and airlines, The World Bank group, note n° 259. Available from Internet: https://openknowledge.worldbank.org/handle/10986/11304.
Tretheway, M.; Kincaid, I. 2005. Competition Between Airports in the New Millennium: What Works, What Doesn’t Work and Why. In Proceedings of the 8th Hamburg Aviation Scientific Workshop, Hamburg, Germany. 1-18.