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 difficulty of airport pageant to the head of the time table for air delivery coverage in Europe. "Airport festival" studies the present kingdom of the controversy and asks no matter if airport pageant is powerful sufficient to successfully restrict marketplace strength. It presents proof on how guests selected an airport, thereby changing its aggressive place, and on how airports compete in numerous areas and markets. The booklet additionally discusses the most coverage implications of mergers and subsidies.
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Extra resources for Airport competition: the European experience
Even where the state owns the airport, economic regulation is carried out at either central or regional level by the appropriate arm of government. However, this may take the form of the approval (or rejection) of a revised scale of airport charges. The response may be given after reference to the inflation of prices in general, rather than supported by complex financial models and rate of return evaluation. Government Support for Airports EU Rules on Government Support for Airports Article 87 of the EC Treaty provides that any aid granted by a member state that ‘distorts or threatens to distort competition by favouring certain undertakings’ is incompatible with the common market.
3. How do entries and exits in the airport industry compare with those in other competitive industries, in particular with the downstream airline industry? 4. Have entries forced incumbent airports to cut costs and lower prices? Have they become more efficient than airports in a market without entries? In this chapter we focus on the first three questions. For the purpose of our analysis, we have selected a period from 1995 to 2005. This period was partially determined by lack of data, but it covers a long phase of boom and recession, which should contribute to entries and exits.
Schwartz, A. (2003). ‘Priming the pump’, Air Transport World, October. This page has been left blank intentionally Chapter 3 Airport Entry and Exit: A European Analysis Christiane Müller-Rostin, Hansjochen Ehmer, Ignaz Hannak, Plamena Ivanova, Hans-Martin Niemeier and Jürgen Müller Introduction There have been many changes in recent years in both the airline and the airport industries in Europe and elsewhere. These changes have been interpreted by some authors as an indication that the airport industry is tending to become a competitive industry.