Seeding growth at airports and airport cities: Insights from the two-sided market literature

Airports are evolving from simple infrastructure providers to complex multiproduct,multiservice enterprises wherein consumption of one product cross-subsidizes the provision of others. Nowhere is this better seen than in the airport cities which are evolving around many mid and large sized airports. Rather than separate portfolio businesses which can smooth or augment airport revenue, these developments raise the prospect that airports are platforms for two-sided markets.Therefore after defining two-sided markets this paper will consider the concept's applicability to airports in a more extensive manner than has previously been the case, and use the theory to understand airport area growth processes. Our main focus will be on examining the business models of selected airport cities for the lessons that can be learned for contemporary airport and regional development strategy.