Vertical Integration of Airlines and Airports: Impacts on Competition

B.A. Kuchinke and J. Sickmann

Competition and Regulation in Network Industries, 2007, vol. 8, issue 3, 283-302

Abstract: In spite of the many economic benefits, the international effort to privatize commercial airports might lead to discrimination regarding the access to airport infrastructure. This occurs when airlines have a full or partial share in the airports or, alternatively, when airports become shareholders in airlines. As a consequence, competition at the level of flight services can be endangered. The following paper shows that this sort of vertical integration is not problematic in all areas of an airport, but rather only in aeronautical sites. Furthermore, it is shown that vertical integration of airlines and non-hub airports can be considered as much more problematic than vertical integration of airlines and hub-airports.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sen:journl:v:8:i:3:y:2007:p:283-302

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