Starting from the premise that airports can be run as commercial successes, The Airport Business aims to place the business as a whole within a conceptual. 19 Jun Rigas Doganis is the doyen of commentators on the airline industry and this economics of international airlines and The Airport Business. Starting from the premise that airports can be run as commercial successes, The Airport Businessaims to place the business as a whole within a conceptual.

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The latter has also been responsible for some of the more complex diagrams in this book. It was reinforced by the inauguration of the Carter administration in January Chapter 9 Airports in the United States. Archowdary rated it liked it Jul 17, This is the right to carry passengers between points in two foreign countries by an airline operating entirely outside its home country. Consequently they cannot exploit fully the whole EU market of million passengers or about million following enlargement in to compete more effectively with their transatlantic competitors.

Infrastructure In the coming years, the airline industry will also have to face up to numerous problems arising from the inadequacy of the aviation infrastructure in several parts of the world. Qirport some capacity control remained. A cyclical downturn, which began to be felt by some airlines inhad aifport a crisis by In time several did so — but not the United Kingdom, which was the largest transatlantic market. Like JetBlue, they both had over new aircraft on order, clearly indicating their aggressive expansion plans.

Clearly, even the most free enterprise economy, the United States, feels that the national ownership of its airlines needs to be protected. Several key strategic and tactical decisions in relation to IT need to be resolved in addition to those directly related to distribution Chapter 7. However, pooling agreements were never entered aiprort on routes to the United States, as they breached US anti-trust legislation.

Moreover, these generated 85 per cent of all domestic passengers. However, the bilaterals between, for example, the United States and the Netherlands, Singapore or Germany did encompass virtually all the features outlined in the table. While the diagram covers the period tothe earlier years repeat this cyclical pattern.


By mid profits at many airlines were beginning to evaporate as traffic growth rates in many key markets fell well below expectations.

The Airport Business – Professor Rigas Doganis, Rigas Doganis – Google Books

Yet attempts in recent years by the Indian Government to privatise it have failed because, though there were willing buyers, the government was insistent on maintaining effective control.

The second driver for change was the Directorate General for Competition DG IVwhich was trying to ensure that competition between producers and service providers within the Community was not distorted by uncompetitive practices imposed by individual governments or introduced by the industries themselves. Airlines which had not hedged their future fuel purchases were badly hit.

Again the initial motor for change was the United States. Isolated unilateral developments such as those in Australia, or even bilateral agreements between pairs of states, cannot have much global impact in terms of further international liberalisation.

Though there may be a time lag before air traffic responds to changes in GDP, air traffic worldwide measured in terms of scheduled passenger-kms appears to have an income elasticity of around 2. Decline in yields Finally, a critical trend in recent years has been the gradual but steady decline in the real value of airline yields — that is the average revenue produced per passengerkms or tonne-kms carried.

This made possible the launch of a new domestic, but UK-owned, low-cost carrier, Virgin Blue, tye and allowed a foreign airline, Air New Zealand, to buy control of Ansett, a long-established Australian carrier. Strong economic drivers are pushing the airline dogwnis towards concentration or even consolidation into larger business units. Despite these constraints, gusiness nearly one third 29 per cent of air passengers across the Atlantic were using charter or non-scheduled services.

The Airport Business

Dictionary for Air Travel and Tourism Activities. Doganjs Luton —Nice route in January 6. On capacity, some bilaterals require very strict control and sharing of capacity by the airlines of the two countries; others have minimal control.

However, ownership of an EU airline by non-EU nationals or companies is limited to 49 per cent. Second, there are no price controls. These bilaterals followed the same pattern as those in Europe: The Third Package consists of three inter-linked regulations, which have effectively created an open skies regime for air services within the European Union.

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Second, whereas the open skies bilaterals did not change the nationality rule at all, bjsiness Third Package for the first time explicitly allowed cross-border majority ownership. While the November ECJ judgments referred specifically to bilateral agreements with the USA, airprot was clear that all other bilateral agreements between EU member states and third countries faced the same legal problems. Chapter 4 Aeronautical charges and pricing policies. A feature of the airline industry outside the United States during the past decade or so has been the progressive privatisation of many government-owned airlines.

Superjumbo of the 21st Century.

The inability of airlines in other regions of the world to consolidate across frontiers has given Rivas States carriers a major competitive advantage.

Moreover, their choices will increasingly be driven by price, that is the fare.

Authorisation of more US cities as international gateways hitherto there had been just a handful. Those airlines already members of a global alliance will also face strategic dilemmas.

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The airline industry is currently faced with its longest and deepest crisis to tne For instance, in allowing an alliance between Lufthansa and SAS inwhich would have a major impact on air services between Germany and Scandinavia, the Commission imposed a number of conditions. Airline Marketing and Management. American, United and Delta among others pushed for further liberalisation for two basic reasons. Dogahis yields were going down, costs were starting to climb in real terms.

The merger regulations even enable the Commission to examine mergers between non-EU companies that are deemed to have the potential to restrict or distort competition within the EU.

Airline Choices for the Future. Aaru marked it as to-read Jun 19, The airline industry as a whole is rather marginal even though several individual airlines busibess performed well over long periods. Access to more gateway cities was seen as very valuable for their airlines because the USA was the largest generator of international air travel.

This was the global pattern.