Type: Working Paper
Privatization, Regulation and Airport Pricing: An Empirical Analysis for Europe
Working Paper, EUI RSCAS, 2009/27, Florence School of Regulation, Energy
BEL, Germà, FAGEDA, Xavier, Privatization, Regulation and Airport Pricing: An Empirical Analysis for Europe, EUI RSCAS, 2009/27, Florence School of Regulation, Energy - http://hdl.handle.net/1814/11561
Retrieved from Cadmus, EUI Research Repository
This paper examines factors determining prices that airports charge to airlines. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and other nearby airports imposes some discipline on the pricing behaviour of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. Finally, we find that private airports not regulated charge higher prices than public or regulated airports. From our analysis, we can infer that market power of each airport is dependent upon its specific characteristics.
Cadmus permanent link: http://hdl.handle.net/1814/11561
Series/Number: EUI RSCAS; 2009/27; Florence School of Regulation; Energy