Airport alliances and mergers – Structural change in the airport industry?

Recent years have seen a global trend towards the emergence of multi-airport companies operating at a global scale. This paper employs industrial and transaction costs economics to identify the main drivers that shape the patterns of international cross-ownership structures that have emerged in the airport industry. In addition, implications for competition and competition policy are drawn.

Research highlights
► This paper employs industrial and transaction costs economics to identify the main drivers shaping the international cross-ownership structures in the airport industry.
► While there has been consolidation of airports through mergers less formal arrangements are uncommon despite the ease with which even international alliances can be formed.
► Mergers largely seem to be driven by considerations of efficiency, for example relating to transfer of know-how, rather than for narrow rent seeking purposes.