humphreys ison francis.pdf (71.19 kB)
Download fileA review of the airport-low cost airline relationship
journal contribution
posted on 06.03.2009, 08:37 authored by Ian M. Humphreys, Stephen Ison, Graham FrancisThe so called low cost model has proved to be financially and operationally robust for
a number of short haul airline operations in various regions world-wide and airports
have responded to the potential opportunities that have arisen by the growth of low
cost airlines. The low cost model has implications however for the airline-airport
relationship. The low cost model has forced airports to negotiate contracts which
significantly reduce aeronautical revenues whilst seeking to address this short fall by
commercial revenues via increased passenger numbers. Airports have sometimes
found it difficult to turn increased passenger volume into additional revenue. This
paper seeks to review the airport-airline relationship in the light of the growth in the
low cost sector, identifying important issues that airport management should consider
when negotiating with low cost airlines.
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