David Starkie

Airport Enterprises begins by questioning whether it is appropriate to apply welfare economics as an analytical lens for airports when the national domicile of beneficiaries frequently differs from that of the cost bearers. The airport firm is viewed instead as a business platform for a broad spectrum of commercial activities some of which have the characteristics of two-sided markets, with important consequences for neo-classical theories of pricing, and also for competition policy. Also challenged is the consensus that airports are natural monopolies. Cost functions are not necessarily sub-additive, additional capacity is added mostly in small increments, and new entry feasible as a result of negotiating parties striking long-term pricing contracts. There are also frequent challenges to current public policy, particularly the EU’s Directives on Airport Charges, the standard interpretation of economic rents at congested airports and, not least, to existing plans for adding capacity at London Heathrow airport.

Mike Brown

This book will explore a new approach to airport planning that better captures the complexities and velocity of change in our contemporary world. As a result, it will lead to higher performing airports for users, business partners, investors and other stakeholders. This is especially pertinent since airports will need to come back better from the Covid-19 pandemic.

The book explains the importance of articulating a clear strategy, based on a rigorous analysis of the competitive landscape while avoiding the pitfalls of ambiguity and ‘virtue signalling’. Having done so, demand forecasts can be developed that resemble S-curves, not simple straight lines, that reflect strategic opportunities and threats from which a master plan can be developed to allocate land and capital in a way that maximizes return on assets and social licence. The second distinctive feature of this book is the premise that planning an airport as an island, a fortress even, does not work anymore given how interconnected airports are with other components of the transportation system, the economies and communities they serve and the rapid pace of social and technological change. In summary, the book argues that airport planning needs to move beyond its traditional boundaries.

The book is replete with real examples from airports of all sizes around the world and includes practical advice and tools for executives and managers. It is recommended reading for individuals working in the airport business or the broader air transport industry, members of airports’ board of directors, who may be new to the business, elected officials, policy makers and urban planners in jurisdictions hosting or adjacent to airports, regulators, economic development professionals and, finally, students.

Edited By Peter Forsyth, Jürgen Müller, Hans-Martin Niemeier, Eric Pels

This book offers new insights into the theory and practice of economic airport regulation. In light of recent developments in aviation markets and policy, and the debate on airport regulation and benchmarking, it offers case studies on various aspects of economic regulation of city and regional airports. Written by experts in the field, the volume features contributions on the theory of regulation and benchmarking, as well as case studies on recent experiences in Europe and Latin America.

This book is divided into three parts: Part I provides the theoretical background for the study of airport regulation and regulatory systems. Competition at airports is discussed, as are common forms of regulation and potential pitfalls. Part II addresses benchmarking, as benchmarking is often applied as an input to the regulatory process. Although benchmarking is necessary, reviews of how benchmarking is applied in the literature and in practice show that improvements can be made. Part III providescase studies on real-world examples.

Addressing the question of whether and how European airport regulators set incentives for efficiency, and how benchmarking is used in the regulatory process, this book is an important contribution to the development of the transport industry in Europe and Latin America. It will appeal to scholars and students in transport economics, regional economics and related fields, as well as to practitioners and policy makers in the transport industry.

Barry Humphreys

The regulation of modern civil aviation can be traced back to the later years of the Second World War. An intense debate about the future regulatory regime resulted in a compromise which to this day essentially dictates the structure of the global airline industry. Further progress towards ‘normalising’ the industry appears to be slowing down, and perhaps even going into reverse. Without an understanding of the development of regulation, it is not possible to understand fully the industry’s current problems and how they might be resolved.

Many books have been written about the development of international air transport, covering deregulation, privatisation, the emergence of new business models among other things, but few if any have taken a broad view of the trends which have determined the industry’s current structure. The Regulation of Air Transport charts the development of aviation from the end of the Second World War to the present day, following the key trends and disruptive forces. It provides an overview of what has determined the industry’s current structure, the problems still facing the industry and the ways in which it could develop in the future.

This wide-ranging study is important reading for both professionals and academics within the aviation field, as well as anyone interested in the broader development of economic regulation.

Edited By Marina Efthymiou

This book addresses each of the Air Navigation Services' five broad categories of services provided to air traffic during all phases of operation: air traffic management (ATM), communication, navigation and surveillance services (CNS), meteorological services for air navigation (MET), aeronautical information services (AIS) and search and rescue (SAR).

This book is designed for working professionals in Air Transport Management, but also undergraduate and postgraduate students studying air transport management and aeronautical engineering. It will also be very helpful for the training of air traffic control officers (ATCOs). The book does not require any prior (specialist) knowledge as it is an introduction to air navigation service provider (ANSP) business. There is very little literature available that gives a detailed appreciation of the complexities, potential risks and issues associated with the provision of air navigation services. The role of this book is to fill this significant gap with a comprehensive, in-depth study of the management principles related to ANSPs. This is particularly timely given recent ATC developments in Europe, USA and New Zealand. Airlines and airports rely on the ANSPs for the management of air traffic. Hence, air navigation services (ANS) provision is considered as a core element for air transportation.

Peter Forsyth, Cathal Guiomard, Hans-Martin Niemeier

This book provides a comprehensive guide to the economics of airports for all managers, regulators and educators within the aviation industry. Written by three renowned experts but made accessible and relevant for all those working within the industry, or aspiring to do so, it is the perfect entry point for learning about the underlying economics of airports as a crucial component of the air transport system. It explains the cost structures of airports and then relates these to how airports determine their charges.

It explains how charges at different airports vary, whether this is due to different types of traffic, different input prices, ways of producing outputs or different levels of efficiency. Most airports are publicly owned or regulated, and there has been a trend towards privatisation. The book explains how airports have been regulated and assesses how well the regulatory structures have performed; it discusses the trend towards light-handed regulation and the reliance on competition where this exists. The book examines the problems of limited capacity at airports and how these are resolved through slots and charging systems, and the long-term solution of investment in airports—why it is controversial, and how it can be achieved effectively. It also considers the environmental impacts of airports and the issues these pose for managers, from the well-known problems of airport noise to the growing recognition of the impacts of air transport on climate change, and the roles airports play in mitigating these consequences.

Written for airport and airline managers, regulators and students, this book will suit Bachelor’s and Master’s programmes on air transport management.

Edited By Frank Fichert, Peter Forsyth, Hans-Martin Niemeier

This book analyses the political, economic and managerial challenges for policy makers and the air transport industry as they face climate change.

Based on an overview of the scientific background and technological options for emissions reduction, Aviation and Climate Change provides an in-depth assessment of environmental regulation and management. It provides an up-to-the-minute analysis of the effects of aviation on climate change, and an economic analysis of policies to reduce or eliminate greenhouse gas emissions. The main emphasis of the book is on the economic mechanisms used to lessen emissions – carbon taxes, emissions trading schemes and offset schemes. It pays particular attention to the ways these policies work, and to the interaction between them – for instance, the interaction between taxes and emissions trading schemes. One feature of the book is that it analyses the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) which has been developed by ICAO for international aviation, and which is due to commence operation shortly. The advantages and disadvantages of this controversial scheme are discussed.

This book will be of interest to researchers in diverse areas (economics, political science, engineering, natural sciences), to air transport policy makers, and to managers in the aviation industry.

Edited By Peter Forsyth, Hans-Martin Niemeier, David W. Gillen, Andreas Knorr, Otto G. Mayer, David Starkie

This tour d'horizon book reviews airport regulation and competition in different regions of the world and contrasts different policy perspectives. Organized in four parts, the first three examine, in turn, Australasia, North America, and Europe, while the last section looks at the institutional reforms that have taken place in these regions. The book covers the regulation of airports, and competition in different regions, as well as privatization policy, the interaction between airports and airlines, and regional economic impacts. It also examines the linkages between governance structures and forms of regulation. The book's global sweep embraces all the large aviation markets, bringing together the ideas and challenges of academic economists, airlines, airport managers, consultants and government regulators. As well as looking at different methods, degrees and paradigms of regulation it also spells out the stress-points, in a way that makes essential reading for airport operators, airline operations staff, as well as academic economists concerned with transport studies. It also offers interesting reading and important lessons for those concerned with regulation of the utility industries such as, telecommunications, water and power generation and distribution - where infrastructure can be subject to natural monopoly characteristics and where firms competing in downstream markets are dependent on the investment and operational strategies of the upstream infrastructure operator.

Edited By Hans-Martin Niemeier, Achim I. Czerny, Peter Forsyth

Over the past several decades, commercial air traffic has been growing at a far greater rate than airport capacity, causing airports to become increasingly congested. How can we accommodate this increased traffic and at the same time alleviate traffic delays resulting from congestion? The response outside the US has been to set a maximum number of slots and use administrative procedures to allocate these among competing airlines, with the most important consideration being 'grandfather rights' to existing carriers. The United States, on the other hand, has used administrative procedures to allocate slots at only four airports. In all other cases, flights have been handled on a first-come, first-served basis, with aircraft queuing for the privilege of landing or taking off from a congested airport. While recognizing the advantages of slot systems in lessening delays, economists have criticized both approaches as being sub-optimal, and have advocated procedures such as slot auctions, peak-load pricing and slot trading to better utilize congested airports. Edited by an international team of air transport economists and drawing on an impressive list of contributors, Airport Slots provides an extremely comprehensive treatment of the subject. It considers the methods currently used to allocate slots and applies economic analysis to each. The book then explains various schemes to increase public welfare by taxing or pricing congestion, and describes alternate slot-allocation schemes, most notably slot auctions. In addition, Airport Slots outlines the complexities involved in slot-allocation methods, including the requirement for multiple slots - a take-off slot at London Heathrow is useless unless there is a landing slot available at Frankfurt for a London Frankfurt flight. Finally, the book explores the economic pitfalls of slot-allocation schemes; for example, controls may not be required if external delay costs are internalized by a dominant carrier at its hub. Airport Slots provides a valuable contribution to the debate on how best to limit airport congestion. The book's comprehensive treatment of the subject matter provides the reader with a 'one-stop' volume to explore airport congestion and slot-allocation schemes, offering valuable insights to academics and practitioners alike.

Edited By Peter Forsyth, David Gillen, Jürgen Müller, Hans-Martin Niemeier

The break-up of BAA and the blocked takeover of Bratislava airport by the competing Vienna airport have brought the issue of airport competition to the top of the agenda for air transport policy in Europe. Airport Competition reviews the current state of the debate and asks whether airport competition is strong enough to effectively limit market power. It provides evidence on how travellers chose an airport, thereby altering its competitive position, and on how airports compete in different regions and markets. The book also discusses the main policy implications of mergers and subsidies.

Edited By Hartmut Wolf, Peter Forsyth, David Gillen, Kai Hüschelrath, Hans-Martin Niemeier

The last few decades have witnessed substantial liberalization trends in various industries and countries. Starting with the deregulation of the US airline industry in 1978, regulatory restructuring took place in further network industries such as telecommunications, electricity or railways in various countries around the world. Although most of the liberalization movements were initially triggered by the worrying performances of the respective regulatory frameworks, increases in competition and corresponding improvements in allocative and productive efficiency were typically associated with the respective liberalization efforts. From an academic perspective, the transition from regulated industries to liberalized industries has attracted a substantial amount of research reflected in many books and research articles which can be distilled to three main questions: (1) What are the forces that have given rise to regulatory reform? (2) What is the structure of the regulatory change which has occurred to date and is likely to occur in the immediate future? (3) What have been the effects on industry efficiency, prices and profits of the reforms which have occurred to date? Liberalization in Aviation brings together renowned academics and practitioners from around the world to address all three questions and draw policy conclusions. The book is divided into five sections, in turn dealing with aspects of competition in various liberalized markets, the emergence and growth of low-cost carriers, horizontal mergers and alliances, infrastructures, and concluding with economic assessments of liberalization steps so far and proposed steps in the future.

Edited By Peter Forsyth, David W. Gillen, Otto G. Mayer, Hans-Martin Niemeier

Prior to liberalization, there was little scope for predatory behaviour in the aviation market. However, following deregulation, new entrants sought to compete with entrenched incumbents. Low-cost carriers (LCCs) gained significant market share, which in turn provoked many different kinds of defensive response. Having put pressure on established carriers, low-cost airlines are themselves feeling the pressure of competition from new operators. While it is normal and natural for airlines to react to competition - modifying their services, the ways in which they offer them and their prices - when does aggressive commercial behaviour go too far and become predation? This book considers what exactly is meant by 'predation' in the aviation environment, and explores the strategies LCCs adopt in order to gain market share, as well as the strategies of the established airlines in response to competition from new entrants to the market. It also addresses the key question of what competition policy should do to ensure intensive competition. Competition versus Predation in Aviation Markets brings together contributions from around the world, from airlines, government agencies, leading academics and consultants, providing a wealth of perspectives on a business practice crucial to airline survival.