The Airport Industry in a Competitive Environment: A United Kingdom Perspective

This paper, from a monograph about competitive interaction between airports, airlines, and high-speed rail, considers the airport industry in a competitive environment. Using United Kingdom airports as the case example, the author shows that effective competition between airports is possible and that a competitive industry can be financially viable. The first section of the paper provides a quick overview of the UK airports industry, followed by a section on the ownership structure of that industry. Next, the author outlines the relationship between airports and airlines, exploring the recent development of long-term contracts that are important for understanding the current nature of competition. Competition is placed in a spatial setting when the author summarizes recent analyses of hinterlands or catchments from which the individual airports attract traffic; these catchments overlap to form a chain of substitution. The final section analyzes the financial performance of the industry. The author maintains that airports at all levels can operate without subsidy. The author stresses that the viable airport industry operates for the most part in the private sector of the economy and it has evolved without the imposition of a strategic plan. Instead, competition has driven the dynamics of the industry, which features a symbiotic relationship with the airline industry.


  • English

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 67-93
  • Monograph Title: Competitive Interaction Between Airports, Airlines and High-Speed Rail

Subject/Index Terms

Filing Info

  • Accession Number: 01146728
  • Record Type: Publication
  • ISBN: 9789282102459
  • Files: TRIS
  • Created Date: Dec 15 2009 6:41AM