Spatial evolution of airport traffic and air transport liberalisation: the case of Greece

This paper explores the evolution of airport passenger traffic in Greece over the period 1978–2006. The country is a member of the European Common Aviation Area, but despite air transport liberalisation, spatial concentration of traffic and asymmetry remain high and have not decreased significantly over time. Greece is still short of traffic generated by low-cost carriers especially outside the main metropolitan airports. The paper argues that further dispersion of traffic could be possible primarily in the mainland if low-cost carriers decide to dynamically enter the Greek market. Potential benefits for regional and tourism development should induce policy makers to work towards this direction.     

Mutual influence across routes using a common airport: The case of the domestic market in Japan

This paper empirically investigates the mutual influence of traffic volumes across routes serving the same airport. Regression analysis using the data on Japan's domestic air transport market reveals that an increase in passengers on a given route has a positive effect on the number of passengers on other routes that share an endpoint airport with the given route. This result implies that a change in policy for an airport is likely to influence routes that do not serve that airport as well as the routes that do.     

The competitive landscape of air transport in Europe

Competition between airlines and airports increased significantly since the deregulation of the intra-European air transport market in 1997. The passenger has a wider choice in terms of routings and departure airports than twenty-five years ago and pays a lower price. In this paper we investigate in which parts of Europe airline and airport competition are most intense and how the competitive landscape has changed since the liberalisation of the intra-European market.Competition levels are modelled for all air transport markets available to consumers in each western-European municipality using a Multinomial Logit (MNL) model. This allows us to determine how competitive the air transport product available to consumers in each of those municipalities truly is and how competition levels have changed. As opposed to most other competition studies we take all viable direct and indirect flight alternatives into account, as well as competing alternatives from nearby (adjacent) airports. This makes it the most extensive analysis of competition in the European aviation industry performed to date.As expected the results show that airline competition, allowing for grouping of the airlines belonging to the same alliance together, has in general increased since the liberalisation of the intra-European market. This can mainly be ascribed to the rise of the low cost business model. The spatial analysis however shows an uneven outcome. Changes in airline competition are most pronounced in areas that were previously not well served, such as the more remote regions in the United Kingdom, Spain and Italy. In Germany airline competition is lagging behind due to the strong dominance of the STAR alliance. In large parts of Scandinavia, but also in parts of France and Spain, airline competition is considerably less. These areas are often served only by a handful of airports and/or airlines, limiting airline choice and therefore competition.     

Effects of non-aeronautical activities at airports on the public transport access system: A case study of Zurich Airport

Many planning authorities and airports study measures to increase public transport use for airport ground access and egress. At the same time, an increase in real estate development at and around airports is occurring, both due to airports seeking new revenue possibilities and other developers attempting to profit from high value locations. This paper considers non-aeronautical activities at large airports, largely commercial centres and transit hubs, as land uses that have the potential to improve the situation for operating public transport services. In order to assess potential benefits and disadvantages, four research questions are considered: (1) Can the additional travel volume reach levels at which it has a significant impact? (2) To what extent do non-aeronautical activities influence the public transport access system? (3) Is the resulting demand distribution better or worse regarding peaking behaviour? (4) Is there a potential for the resulting overall demand to bring about capacity shortages?A case study is conducted at the airport of Zurich, Switzerland, which finds that non-aeronautical activities in the direct airport vicinity have led to a situation where the operation of public transport services is much more viable due to overall higher passenger numbers and a more even distribution throughout the day. It is concluded that locating non-aeronautical activities at airports can, in addition to providing commercial benefits to developers, lead to a situation where improved public transport services become feasible.     

Airport security measures and their influence on enplanement intentions: Responses from leisure travelers attending a Canadian University

Airport security measures can be grouped into two types; standardized screening techniques, which all passengers must undergo (e.g., baggage X-rays, metal detecting scans); and elevated-risk screening (including pat-downs and strip searches) for which only a sub-set of passengers are selected. In the current study, an undergraduate sample (n = 636) was surveyed regarding the professionalism of security screening staff, as well as perceived safety, threat to dignity, and enplanement intentions, following standard and elevated-risk screening measures. Consistent with our hypotheses, perceived professionalism and safety were positively correlated with enplanement intentions, and dignity threat was negatively associated with perceived safety. As the perceived safety from the use of a security measure decreased, enplanement intentions also decreased. Notably, when a screening measure is perceived as having negative consequences (e.g., threatening one's sense of dignity) the safety of the measure is personally invalidated.     

The influence of personality traits on airport public transport access mode choice: A hybrid latent class choice modeling approach

Many objective and subjective factors affect individual tendencies. Such subjective factors include personality traits, attitudes, identities, perceptions, and feelings. The choice of transportation mode is an individual tendency that is considered important in policy-making decisions, and it can affect sustainable transportation, particularly in metropolitan areas. The present study’s main aim is to determine the impact of the Big Five Personality Factors on individual preferences toward public transportation modes. We use data from a survey conducted in January and February of 2015 at Imam Khomeini International Airport (IKIA). Passengers were asked to indicate their preferred mode of transportation to access the IKIA and to respond to questions on the NEO Five-Factor Inventory. Based on 557 valid responses, hybrid discrete latent class modeling was conducted to understand the heterogeneity in the respondents’ individual preferences regarding the Big Five Personality Factors and their preferences toward public modes of transportation. The results indicated that individuals who display neuroticism were more likely than the others to be concerned about carrying heavy luggage and about inclement weather conditions when using public transportation. In addition, interesting results indicated that conscientious individuals likely paid more attention to travel cost than to any other attribute of public transportation, and the model of the conscientious latent personality trait was a better fit to the data. Finally, this paper examined the taste heterogeneity of each personality trait and the results indicate the usefulness of considering personality traits in mode choice models for richer insights toward sustainable transportation.     

Airport efficiency in the dawn of privatization: The case of Greece

Until recently, all airports in Greece were owned and managed by the state; however, the recent economic crisis led the Greek government to privatize 14 regional airports. This paper evaluates the performance of the 38 Greek airports open to civil aviation just before the privatization was concluded. It also aims to highlight that the majority of airports with high efficiency were selected to be privatized. The analysis was performed applying Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) using 2011 and 2015 operational and financial data. Results showed that, despite the economic crisis, overall efficiency improved between 2011 and 2015, mainly due to the spectacular increase in incoming international passenger traffic. Changes in efficiency can be attributed by and large to exogenous factors such as operations of low-cost carriers and charter operators along with the seasonal operations of established carriers at individual airports. Findings confirm that the majority of high efficiency airports were offered to private investors.     

Inter-urban competition and air transport in the deregulated era: The Nashville case

American cities are acting in a competitive environment as a result of forces like economic restructuring, capital mobility, and state devolution. Since the late 1970s, the federal government has dismantled the spatial boundaries of investment through the deregulation of several important sectors of the economy, including the airline industry. Transportation geographers have investigated how deregulation allowed airlines to develop a hub-and-spoke system. However, post-deregulation airline development has yet to be approached from the perspective of urban entrepreneurialism. Another layer of inter-urban competition has been added through new geographical patterns of airline investment, and capturing hub status through airport development may be especially valuable for mid-size cities. Most large cities have hub status, while small cities have no realistic chance of becoming major players in the air transportation network, thus making the hub an opportunity for mid-size cities. A case study of Nashville, Tennessee illuminates the strong local emphasis on airport expansion in the deregulated environment. Local business and government have been active and innovative, although not always successful, in policies that improve Nashville’s accessibility and position in the urban hierarchy.     

Quantity price discrimination in the air transport industry: The easyJet case

This paper extends the literature on low-cost carriers' pricing strategies by investigating the presence of quantity price discrimination implemented through a two-part tariff in offered fares. By analysing Internet fares for all easyJet flights departing from the Amsterdam Schiphol airport between March and April 2015, we search for price differentials based on the number of seats booked by a single consumer. We find that the lowest average unit price is associated with a single consumer reserving 5 seats. On average, the per-seat discount for a single consumer reserving 5 seats is €9.48, which is 14% of the single-seat fare. Additionally, a multivariate analysis shows that quantity discounts are greater for flights with a larger fraction of available seats at the time of booking, the seats are booked longer in advance, and the destination's gross domestic product per capita is greater. Conversely, quantity discounts are lower for longer routes, larger destination airports, and routes for which easyJet's market share is higher.     

Determinants of daily fluctuations in air passenger volumes. The effect of events and holidays on Milan Malpensa airport

Air traffic flows show large seasonal variability, but arrivals and departures may also be significantly influenced by specific events which generate peaks, which generate peaks rising above baseline traffic. While seasonal variations of air flows are well studied in literature, the daily variations and their causes are seldom analysed and quantified. The paper aims at filling this gap by exploring and quantifying the effect of holidays and events (conferences, trade fairs, sport events) in terms of passenger daily fluctuations.We identified the elements affecting these variations and searched for correlations with daily demand fluctuations using an OLS econometric model applied to Milan Malpensa airport. The model allows one to reproduce the observed daily traffic, identifying the baseline component of traffic (depending on the calendar) and the additional effect ascribable to holidays and occasional events.Results show which types of events generate a visible traffic increase. The effect of some of them can be very significant indeed. The largest international design and fashion shows taking place in Milan generate up to more than 20% extra passenger traffic compared to the normal baseline traffic. In addition, the analysis showed that their effect is not limited to the event days, but impacted on the surrounding days as well. Holidays also influence the patterns of demand, creating additional traffic on certain days and more pronounced peaks, which also differ according to seasons.     

Commercialisation and airport performance: The case of Ireland's DAA

Airport performance has been the subject of an increasing volume of empirical research in recent years. This paper bridges a gap in the existing literature through an in-depth case study analysis of the process of commercialisation in the Dublin Airport Authority (DAA), Ireland's state-owned airport company, and the corresponding impact on performance over the 1994–2014 period. We use a model of commercialisation to examine changes in the DAA's internal and external environments that show evidence of a more commercial focus. The DAA's economic performance is then analysed using total factor productivity (TFP) and labour productivity indicators, as well as basic financial indicators. Our analysis highlights the significant internal and external changes experienced by the DAA over the past two decades that have driven a continuous process of commercialisation. While TFP growth was positive or stable in half of the years that we examined, the overall level of TFP declined over our timeframe of analysis. Much of this decline was due to two considerable programmes of investment in long-lived infrastructure assets where a return in the short-term would not be expected.     

Competition of high-speed train with air transport: The case of Madrid–Barcelona

This paper analyzes the potential competition of the high-speed train with the air transport between Madrid and Barcelona. The analysis estimates disaggregated mode choice models using information provided by mixed revealed and stated preferences database. We obtained different willingness-to-pay measures for improving service quality. In general, values for travel time savings are higher for mandatory trips and increases as the level of comfort falls. We also obtained a high willingness-to-pay estimate for reductions in delay time, being higher in the case of high-speed train than for air transport. Demand responses to various policy scenarios that consider the potential competition between high-speed train and air transport are examined.     

Analysing passenger network changes: The case of Hong Kong

Passenger throughput at Hong Kong International Airport (HKIA) has shown steady growth since its opening. Various aspects relating to HKIA have been studied in prior literature. This paper investigated changes in HKIA's passenger network for the period of 2001–2012 and used the gravity model to examine the key factors explaining its passenger traffic flows. The findings suggested that HKIA's passenger network has changed significantly and expanded to many new different destinations. Two regions (East Asia and Southeast Asia) were the most important markets for HKIA, and most key destinations connected by Hong Kong showed healthy growth. Nine factors could explain passenger traffic flows between Hong Kong and its key destinations: Hong Kong GDP per capita, GDP per capita of destinations connected by HKIA, distance, airport hub status of the destination airport, tourist destinations connected by HKIA, numbers of passenger airlines in service, bilateral trade flows, speaking a common language and having strong cultural/colonial links with Hong Kong, and the route presence of Cathay Pacific.     

Airport partial and full privatization in a multi-airport region: Focus on pricing and capacity

This paper studies the capacity and pricing choice of two congestible airports in a multi-airport metropolitan region, under transition from a pure public, centralized airport system to partial or full privatization. We develop analytical models to investigate three privatization scenarios: public–private duopoly, private–private duopoly, and private monopoly. We find that, airports follow the same capacity investment rule as prior to privatization when capacity and pricing decisions are made simultaneously. Pricing rule after privatization becomes more complicated, with additional factors having an upward effect on the privatized airport(s) and a downward effect on the remaining public airport.     

A study of the site selection of a civil airport based on the risk of bird strikes: The case of Dalian,China

Bird strikes are a potential danger to aviation security. The threat of birds to the flight security of civil airplanes is hard to solve if the existence of birds in nature is ignored. An in-depth study on the living habits of birds and the request for a harmonious coexistence between birds and civil airplanes seems to be an effective way to relieve this contradiction. Taking the case of the site selection of the civil airport in Dalian of China, this paper comprehensively analysed the bird strike assessment of various species of birds near the sites of Zhoushuizi Airport and Jinzhou Bay Airport. The assessment of the risk of bird strikes demonstrated that the site of the Jinzhou Bay airport would have a smaller risk of bird strikes, which could greatly reduce collisions between birds and airplanes and promote aviation security. Such results provide a valuable reference for the site selection of the civil airport in Dalian. As bird strikes are a common problem in the field of civil aviation, the analysis and methods in this paper are a needed reference for the planning and land use of civil airports in other cities.     

The relationship between airport image,national identity and passengers delight: A case study of the Malaysian low cost carrier terminal (LCCT)

This study examines the relationship between airport image and passengers delight in the context of a low cost carrier terminal in Malaysia. It also seeks to investigate the moderating effect of the airport's national identity on the predicted relationship between the two main constructs. The research, involving 200 passengers (foreign tourists), employed Hierarchical Moderated Regression as the main method of data analysis. The results revealed that there is a strong positive relationship between the airport image and passengers delight, and that national identity helps strengthen the relationship of the main effect.     

Impact of a sustainable brand on improving business performance of airport enterprises: The case of Incheon International Airport

This research attempted to help understand brand management from a new perspective suited to the digital age. The purpose of this research is to empirically analyze direct and indirect influences on the relationships between sustainable brands and the enhancement of airport business performance by examining the relationships between social media, transparency, social responsibility, sustainable brand and airport business performance. For this testing, 304 questionnaires were collected from employees of Incheon International Airport. Results of the testing indicated that social media, transparency, and social responsibility had a significant influence on airport business performance through a sustainable brand. It was found that the mediation effect of a sustainable brand was significant as well. Results of this research are meaningful in that they provide implications and insights for enterprise brand management in the digital environment.     

International trade in air transport services: Penetration of foreign airlines into Japan under the bilateral aviation policies of the US and Japan

This study examines the impact of the bilateral aviation framework on passenger air transport service imports focusing on the US and Japan. The US promoted liberalization under its Open Skies framework from the 1980s, while Japan supported phased-in liberalization under the traditional bilateral air services framework. The numbers of US and Japanese citizens flying on foreign carriers has increased. The penetration of foreign imported air services into Japan has been significant. Regression analysis shows that Open Skies liberalization may contribute to the increased US import. Japan's relative market openness, however, makes it difficult to measure the effects of liberalization under a bilateral framework and shows the complex dynamics that may accompany Open Skies policies.     

The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa

This paper investigates the claim that air transport development may be an engine for inclusive economic growth and poverty reduction in developing and emerging countries, using the example of South Africa, a country with high income inequality and rising air traffic volume. A social accounting matrix (SAM) model is adopted to assess the strengths of backward and forward linkages between the air transport sector and the local economy, and a computable general equilibrium (CGE) model is used to estimate the economy-wide impact of air transport expansion in South Africa. The results show that air transport has a significant effect on output, incomes and employment, and that its importance lies in its considerable backward linkage effects. Income and employment effects are found to be unevenly distributed in the economy, the biggest winners being households in the highest expenditure decile, as well as highly skilled labour. It is concluded that unless accompanied by improvements in education and training for low-skilled workers, air transport expansion may lead to a widening of income inequality in South Africa.     

Hub airport slot Re-allocation and subsidy policy to speed up air traffic recovery amid COVID-19 pandemic --- case on the Chinese airline market

With international air travels largely banned around the world amid the global COVID-19 pandemic, many gateway and hub airports have more ideal slots available for reallocation. Airport traffic recovery replaces airport congestion to become the primary challenge of major airports around the world. With the pandemic well controlled domestically in China, the government liberalizes the hub airport slots for those previously forbidden services to the small/regional airports. This paper thus analytically examines the effect of this slot liberalization. The government subsidy to the small airports has also been considered. It is found that the slot liberalization can speed up airport traffic recovery for both hub and small airports. The hub airport slot liberalization leads to a lower level of minimum subsidy to sustain the survival of the small airports. Given any fixed level of subsidy to the small airport, both the total airport traffic and social welfare would improve with the slot liberalization at the hub airport. When the government can adjust the level of subsidy after liberalizing the hub airport slots, the subsidy could be excessive, if the government emphasizes too much on airport traffic recovery. This would, however, harm the overall social welfare.