Airport Deregulation and Airline Competition

Jolian McHardy and Steve Trotter

No 2005003, Working Papers from The University of Sheffield, Department of Economics

Abstract: Liberalisation has affected all parts of the air travel industry, with airports as well as airlines increasingly run on commercial lines. This paper models interactions between airports and airlines to show that, for example, the potential benefits to passengers of increased competition between airlines may be (more than) absorbed by the unregulated airports through which they travel, and that effecting airport competition in one country may lead to the majority of the gains going abroad. The policy conclusion is that the (de)regulation of airlines and associated services should be fully co-ordinated and internationally coherent.

Keywords: Airports; airlines; competition; deregulation. (search for similar items in EconPapers)
JEL-codes: L12 L93 R48 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2005-01, Revised 2005-01
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