Competition Policy and International Airport Services

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Abstract:



Competition among airlines requires efficient provision of airport services (take-off, landing and ground-handling services). The number, nature and allocation of take-off and landing slots affect entry of competing airlines. Slot concentration and hoarding problems should be controlled under competition rules; use-it-or-lose-it rules produce inefficient outcomes. A profit-maximising, independent airport has strong incentives to allocate take-off and landing rights and to invest in new capacity efficiently. Ground handling services, including passenger handling, baggage handling, aircraft maintenance, catering, retail and ground transportation services, should be supplied competitively. Vertical relationships between airports and airlines should be avoided. These points and others emerged from a roundtable discussion on Competition Policy and Airports services held in June 1997.

Page Count: 36

Document Type: Review Article

Publication date: June 1, 2000

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