Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11023217 | Transport Policy | 2018 | 35 Pages |
Abstract
This paper investigates the joint impacts of downstream airline market structure, airport ownership structure, concession services, and low-cost carrier (LCC) presence on airport market power and profit margin. Lerner indexes for a sample of 61 major airports around the world were calculated for the period 2008-2014. Then, regression analysis was conducted to identify the determinants of the airport Lerner index. We find that a more concentrated downstream airline market would reduce the profit margin for a public airport but increase the profit margin for a private airport. A higher share of concession service is found to decrease the airport's overall profit margin (accounting for both aeronautical and concession services). Airports with significant LCC presence have a lower profit margin. Finally, the concentration in airline market is found to have a larger negative impact on airport aeronautical price than on the concession price.
Keywords
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Social Sciences and Humanities
Social Sciences
Geography, Planning and Development
Authors
Yap Yin Choo, Leonardo Corbo, Kun Wang,