Airport competition: the European experience by Peter Forsyth, David Gillen, Jurgen Muller, Hans-Martin

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 by means of Brussels South Charleroi Airport have introduced the problem of airport pageant to the head of the time table for air shipping coverage in Europe. "Airport pageant" studies the present kingdom of the talk and asks no matter if airport festival is powerful adequate to successfully restrict industry energy. It presents proof on how guests selected an airport, thereby changing its aggressive place, and on how airports compete in several areas and markets. The booklet additionally discusses the most coverage implications of mergers and subsidies.

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For example, an Asian airline might have some extra capacity that might be applied to new European services. It might have a ranking of attractiveness of various new points, and the airports might try to influence this ranking. The new point (airport) will offer the potential for local traffic and also other markets using the connecting flights of other airlines (often alliance partners). Thus the airline decision is about the best airport to serve as a new node in its existing network of flights.

Though BAA’s performance and its rising share prices were widely seen as a success, making it a kind of role model for the privatization of airports, most European governments were reluctant to give up control completely. In the 1990s a number of European airports were partially privatized. The crises in aviation from 2001 onwards stopped this trend almost completely and only recently the airports of Brussels, Budapest, Lübeck, Malta and Paris were partially privatized. Among the non-British airports, only Brussels, Copenhagen, Malta and Vienna are majority privately owned.

2002, pp.  Another example was the dispensation given to Amsterdam Schiphol Airport on the payment of corporation tax. The Dutch government agreed to change this after the investigation of a complaint by the European Commission and the subsequent ruling against them. The ruling was based both on the fact that Amsterdam competed with other airports, given its location and type and volume of traffic handled, and the unfair advantage that it had in competing for the acquisition of other airports.

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