Oxera Releases New Analysis on Europe’s Aviation Market, Revealing Increased Competition between Airports
Oxera Consulting LLP has revisited the subject of airport competition in Europe, conducting research and analysis on the implications of recent market trends on the dynamics between airports and airlines in Europe.
Oxera found that the European aviation market grew by 25% between 2010 and 2016, with key trends including the continuing rapid expansion of LCCs (low-cost carriers) and non-traditional hubs in the Middle East and Istanbul. These developments have contributed to an intensification of the rivalry between airports, across all channels through which they compete.
With many of these trends now being long established, the competitive pressures on airports, of all sizes, across Europe are highly likely to endure and continue to develop, implying that regulators and government stakeholders will need to address this ‘new normal’.
Andrew Meaney, Partner and Head of Transport at Oxera said, ‘What our study confirms is that the competitive landscape of the European aviation market is evolving rapidly and competition between airports is both widespread and increasing. Many of the market trends driving this are well-established and likely to continue - further raising the pressure on airports of all sizes across Europe. In an industry with largely fixed costs and long design periods, this means that airports, their customers, regulators and governments will all need to come to terms with this reality.’
For the full implications of how increased competition between European airports could affect the aviation market and its regulators, read the Oxera report here.
Notes to editor:
Oxera advises companies, policymakers, regulators and lawyers on any economic issue connected with competition, finance or regulation. We have been doing this for more than three decades, gathering deep and wide-ranging knowledge as we expand into new sectors. We have a reputation for credibility and integrity among those we advise, and among key decision-makers, such as policymakers, regulators and courts. With offices in Berlin, Brussels, Rome, London and Oxford, we are able to advise our international clients in a highly flexible way, including providing advice in several languages.
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