New PDF release: Airline Network Development in Europe and Its Implications

By Guillaume Burghouwt

ISBN-10: 0754645061

ISBN-13: 9780754645061

The continuing deregulation and liberalization of globally air shipping markets confronts airport planners with an more and more troublesome context. at the one hand, the capital in depth, large-scale and complicated airport investments want a unique, long/medium-term making plans of airport infrastructure. Such making plans calls for at the very least predictable site visitors volumes (and site visitors composition) in the making plans horizon. nevertheless, airline path networks are more and more dynamic buildings that regularly exhibit discontinuous alterations. in this case, the even more unstable airport site visitors restricts the worth of precise site visitors forecasts. Volatility of airport site visitors and its composition calls for flexibility of airport innovations and making plans approaches. The publication explores this drawback via an in depth learn of airline community improvement, airport connectivity and airport making plans within the deregulated ecu air delivery marketplace. The questions the e-book seeks to reply to are: how have airways answered to the regime adjustments in european aviation with appreciate to the configuration in their path networks? What has been the influence of the reconfiguration of airline community configurations for the connectivity of european airports? How can airport planners and airport experts care for the more and more doubtful airline community behaviour in Europe?

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Extra resources for Airline Network Development in Europe and Its Implications for Airport Planning (Ashgate Studies in Aviation Economics and Management) (Ashgate Studies in Aviation Economics & Management)

Sample text

Nowadays the European airlines that operate extra-European air services (air service between an EU country and a non-EU country) face different bilateral regimes. 3) in contrast with the EU 1992 Third Package of Deregulation Measures. The table may serve as an illustration of the wide range of bilateral air-service agreements between EU states and third countries. Some of these arrangements are open-skies or liberalized bilateral air-service agreements, but ‘most of the existing arrangements are quite protectionist and traditional’ (Doganis 2001).

The networks of the (alliance) partners can be linked through the respective hubs (Pels 2001). 8 Some remarks Hub-and-spoke networks do not come without drawbacks for the carrier. Hub-and-spoke networks have not proven to be necessarily the most profitable (Button 2002; Toh and Higgins 1985; Tretheway 2004). We refer to such drawbacks as network duplication and complexity costs. Network duplication may appear when an airline ends up competing with itself across duplicated hubs (Graham 1995). Such duplications are mainly caused by airline alliances or mergers that are not fully complementary in terms of network coverage.

However, hub-and-spoke networks do not come without drawbacks. Airlines with low unit costs may in any case prefer alternative network configurations. We have concentrated here on the air transport regime and network economies. The development of real-world airline networks is, however, much more complex. We therefore discuss below a number of intervening factors at the level of the individual nodes. 4 Airport Airport context 31 Key drivers for nodes in airline networks Airline station • Safety of the airport and destination • Efficiency of ground (turnaround times), baggage and terminal handling • Airport charges and other airport related costs (visit costs) • • • • • • • Traffic node Hub • Capacity • Peak-hour capacity of airport • Airport amenities • Transfer facilities minimizing according to airport size minimum connecting time • Efficient airport lay-out • Facilities for connecting that minimizes taxi-times passengers • Opportunities for • Gate-positions hub carrier • Opportunities for operating future growth • Opportunities for dedicated airline terminal(s) aircraft maintenance Size of a solid origin– • Degree of market • Geographical location destination market, which dominance that is likely of hub with respect to is determined by: to be achieved by the the major traffic flows ◦ Population size and growth hub-carrier in both • Existence of commuter feeder ◦ Personal disposable direct and to a lesser income in catchment area extent indirect markets ◦ Level and nature of • Location with respect economic activity in to global time zones catchment area and night curfews ◦ Social environment (length of holidays, attitudes to travel) ◦ Level of tourist attraction ◦ Historical/cultural links ◦ Earlier population movements ◦ Migrant labour flows Travel restrictions Landside accessibility in relation to airport size Reliability of runway system in various weather conditions Flying (sector) time to hub(s) (in case of a spoke) Competitive position: degree of market dominance that is likely to be achieved in direct and onward markets Level of competition of other transport modes Key drivers for airline nodes Although it is unlikely for an airline to ‘pick up and drop’ its hub or traffic node in order to continue its operation at an alternative location (Bootsma 1997), it may still be useful to identify the criteria for choosing a location for a hub or traffic node.

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Airline Network Development in Europe and Its Implications for Airport Planning (Ashgate Studies in Aviation Economics and Management) (Ashgate Studies in Aviation Economics & Management) by Guillaume Burghouwt

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