Download ITF Round Tables Competitive Interaction between Airports, by OECD Organisation for Economic Co-operation and Development PDF

By OECD Organisation for Economic Co-operation and Development

How should still airports be regulated to include marketplace strength? This around desk proceedingsfirst examines whether or not they have to be regulated in any respect. It concludes that simply because law is necessarily imperfect and dear, coverage makers should still determine stipulations for pageant to emerge among airports as opposed to finished rules, every time attainable. fiscal legislation is usually priceless, comparable to while airports are seriously congested. lawsuits determines which methods are inclined to paintings most sensible and likewise assesses innovations for coping with greenhouse fuel emissions. It reveals that even if together with aviation in an open emission buying and selling scheme may possibly support mitigate emissions successfully around the financial system, it's going to no longer be anticipated to provide significant cuts in CO2-emissions in aviation itself. ultimately ;proceedings identifies the commercial stipulations below which high-speed rail supplies a aggressive alternative for aviation, revealing the restricted relevance of rail to decreasing greenhouse gasoline emissions from this a part of the delivery market.Table of content material :Summary of Discussions.Impacts of Airports on Airline pageant: concentrate on Airport functionality and Airport-Airline Vertical family members by means of Tae H. Oum (Canada) and Xiaowen Fu (Hong Kong)-Introduction-Airport profit constitution, rules and Pricing-Airport's industry Power-Airport Dominance and Airline Hub top rate, and Implications for Airline-Airport Co-operation-Airport-Airline Vertical Relationship-Summary and ConclusionThe Airport in a aggressive setting: A uk standpoint through David Starkie (United state)

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Additional info for ITF Round Tables Competitive Interaction between Airports, Airlines and High-Speed Rail (International Transport Forum Round Tables)

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Some airlines hold shares in airports or directly control airport facilities. For example, Terminal 2 of Munich Airport is a joint investment by the airport operating company, FMG (60%) and Lufthansa (40%), the dominant airline at the airport. Lufthansa has also invested in Frankfurt Airport, and holds a 29% share of Shanghai Pudong International Airport Cargo Terminal. By 2006, Thai Airways had invested over US$400 million at the new Bangkok International Airport19.  Long-term usage contract.

We then examine how airport services and business strategies influence competition in the downstream airline market, and the interactive effects between airline-airport vertical relations and the horizontal competition in airline and airport markets. The paper is organised as follows. In Section 2, we study the revenue structure of airports, and its interactive effects with the regulatory regime. This allows us to study airport pricing and services to airlines which affect airline performance. Section 3 discusses sources of airport market power, and how such market power is affected by the types of airlines using the airport, as well as by the airline and airport market structures.

Such airport dominance allows an airline to obtain a substantial hub premium. On the other hand, co-operation between a hub airport and the dominant carrier may enhance the competition between airline networks formed by different airport-dominant carrier combinations. In other words, airport-airline co-ordination or alliance is a double-edged sword for downstream airline competition: there is a need for careful further examination on the issue in order to design an effective regulatory oversight.

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