Market Power : Airports - Vertical Integration between Airports and Airlines
In the late 1980s and the 1990s many countries privatized airports or concessioned their operation. The United Kingdom began the trend, followed by other countries adopting new forms of infrastructure ownership and management. To control infrastruc...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2459548/market-power-airports http://hdl.handle.net/10986/11304 |
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okr-10986-113042021-04-23T14:02:55Z Market Power : Airports - Vertical Integration between Airports and Airlines Serebrisky, Tomás AIRPORTS VERTICAL INTEGRATION MARKET POWER AIRLINES PRIVATIZATION INFRASTRUCTURE MANAGEMENT NATURAL MONOPOLY AIRCRAFTS RUNWAYS TAXIWAYS PASSENGER AIRCRAFT ACCOUNTING AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT MARKET AIRCRAFT AIRLINE AIRLINE MARKET AIRLINES AIRPORT CONCESSIONS AIRPORT OPERATION AIRPORT SECTOR AIRPORT SERVICES AIRPORT TARIFFS AIRPORT TRAFFIC AIRPORTS BANKS CAR PARKING CITIES COMMERCIAL SERVICES CONCESSIONAIRE CONTROL INFRASTRUCTURE DUTY ECONOMIC WELFARE ECONOMIES OF SCALE ELASTICITY OF DEMAND EVASION FIRE FIXED COSTS FOREIGN AIRLINES FREIGHT FUEL HANDLING HOTELS INCOME INFORMATION ASYMMETRIES LAWS MARKET POWER NATURAL MONOPOLIES PASSENGER PASSENGERS PRIVATE AIRPORT OPERATORS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PROFITABILITY PROVISIONS PUBLIC POLICY PUBLIC WORKS REGULATORY FRAMEWORK RUNWAY RUNWAYS SPRING TERMINALS TRAFFIC TRANSACTION COSTS TRANSPORT INFRASTRUCTURE In the late 1980s and the 1990s many countries privatized airports or concessioned their operation. The United Kingdom began the trend, followed by other countries adopting new forms of infrastructure ownership and management. To control infrastructure licensing and the "natural monopoly" characteristics of some airport services, governments developed regulatory policies for airport systems. The operation of an airport creates incentives to transfer the airport's market power to the air transport market. If the airport market is regulated but the airport operator is allowed to control at least one airline, those incentives can give rise to anticompetitive practices aimed at displacing competing airlines. When the regulatory framework for airports lacks explicit rules about such vertical integration, that can have consequences for competition in the air transport market. Australia and Chile, for example, have an explicit prohibition on vertical integration. By contrast, Argentina has no restrictions on vertical integration leaving it to the antitrust agency to decide whether to approve or reject a vertical merger. Airlines provide air transport services by combining aircraft, personnel, airport services, and other inputs. Airports supply a series of services to air transport companies and to passengers. Aeronautical services (rescue, security, firefighting, infrastructure supply, runway and taxiway maintenance). Aeronautical-related commercial services (catering; supply of fuel and lubricants; baggage, passenger, and aircraft assistance). Commercial services (banks, hotels, restaurants, car rental, car parking, retail shops, duty-free shops). 2012-08-13T14:42:25Z 2012-08-13T14:42:25Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2459548/market-power-airports Viewpoint. -- Note no. 259 (March 2003) http://hdl.handle.net/10986/11304 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
AIRPORTS VERTICAL INTEGRATION MARKET POWER AIRLINES PRIVATIZATION INFRASTRUCTURE MANAGEMENT NATURAL MONOPOLY AIRCRAFTS RUNWAYS TAXIWAYS PASSENGER AIRCRAFT ACCOUNTING AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT MARKET AIRCRAFT AIRLINE AIRLINE MARKET AIRLINES AIRPORT CONCESSIONS AIRPORT OPERATION AIRPORT SECTOR AIRPORT SERVICES AIRPORT TARIFFS AIRPORT TRAFFIC AIRPORTS BANKS CAR PARKING CITIES COMMERCIAL SERVICES CONCESSIONAIRE CONTROL INFRASTRUCTURE DUTY ECONOMIC WELFARE ECONOMIES OF SCALE ELASTICITY OF DEMAND EVASION FIRE FIXED COSTS FOREIGN AIRLINES FREIGHT FUEL HANDLING HOTELS INCOME INFORMATION ASYMMETRIES LAWS MARKET POWER NATURAL MONOPOLIES PASSENGER PASSENGERS PRIVATE AIRPORT OPERATORS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PROFITABILITY PROVISIONS PUBLIC POLICY PUBLIC WORKS REGULATORY FRAMEWORK RUNWAY RUNWAYS SPRING TERMINALS TRAFFIC TRANSACTION COSTS TRANSPORT INFRASTRUCTURE |
| spellingShingle |
AIRPORTS VERTICAL INTEGRATION MARKET POWER AIRLINES PRIVATIZATION INFRASTRUCTURE MANAGEMENT NATURAL MONOPOLY AIRCRAFTS RUNWAYS TAXIWAYS PASSENGER AIRCRAFT ACCOUNTING AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT MARKET AIRCRAFT AIRLINE AIRLINE MARKET AIRLINES AIRPORT CONCESSIONS AIRPORT OPERATION AIRPORT SECTOR AIRPORT SERVICES AIRPORT TARIFFS AIRPORT TRAFFIC AIRPORTS BANKS CAR PARKING CITIES COMMERCIAL SERVICES CONCESSIONAIRE CONTROL INFRASTRUCTURE DUTY ECONOMIC WELFARE ECONOMIES OF SCALE ELASTICITY OF DEMAND EVASION FIRE FIXED COSTS FOREIGN AIRLINES FREIGHT FUEL HANDLING HOTELS INCOME INFORMATION ASYMMETRIES LAWS MARKET POWER NATURAL MONOPOLIES PASSENGER PASSENGERS PRIVATE AIRPORT OPERATORS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PROFITABILITY PROVISIONS PUBLIC POLICY PUBLIC WORKS REGULATORY FRAMEWORK RUNWAY RUNWAYS SPRING TERMINALS TRAFFIC TRANSACTION COSTS TRANSPORT INFRASTRUCTURE Serebrisky, Tomás Market Power : Airports - Vertical Integration between Airports and Airlines |
| relation |
Viewpoint |
| description |
In the late 1980s and the 1990s many
countries privatized airports or concessioned their
operation. The United Kingdom began the trend, followed by
other countries adopting new forms of infrastructure
ownership and management. To control infrastructure
licensing and the "natural monopoly"
characteristics of some airport services, governments
developed regulatory policies for airport systems. The
operation of an airport creates incentives to transfer the
airport's market power to the air transport market. If
the airport market is regulated but the airport operator is
allowed to control at least one airline, those incentives
can give rise to anticompetitive practices aimed at
displacing competing airlines. When the regulatory framework
for airports lacks explicit rules about such vertical
integration, that can have consequences for competition in
the air transport market. Australia and Chile, for example,
have an explicit prohibition on vertical integration. By
contrast, Argentina has no restrictions on vertical
integration leaving it to the antitrust agency to decide
whether to approve or reject a vertical merger. Airlines
provide air transport services by combining aircraft,
personnel, airport services, and other inputs. Airports
supply a series of services to air transport companies and
to passengers. Aeronautical services (rescue, security,
firefighting, infrastructure supply, runway and taxiway
maintenance). Aeronautical-related commercial services
(catering; supply of fuel and lubricants; baggage,
passenger, and aircraft assistance). Commercial services
(banks, hotels, restaurants, car rental, car parking, retail
shops, duty-free shops). |
| format |
Publications & Research :: Viewpoint |
| author |
Serebrisky, Tomás |
| author_facet |
Serebrisky, Tomás |
| author_sort |
Serebrisky, Tomás |
| title |
Market Power : Airports - Vertical Integration between Airports and Airlines |
| title_short |
Market Power : Airports - Vertical Integration between Airports and Airlines |
| title_full |
Market Power : Airports - Vertical Integration between Airports and Airlines |
| title_fullStr |
Market Power : Airports - Vertical Integration between Airports and Airlines |
| title_full_unstemmed |
Market Power : Airports - Vertical Integration between Airports and Airlines |
| title_sort |
market power : airports - vertical integration between airports and airlines |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2003/03/2459548/market-power-airports http://hdl.handle.net/10986/11304 |
| _version_ |
1764416251694678016 |