December 10, 2012 Leave a comment
By Rafael Bernardo Carmona Benítez
Fundamental changes in the air passenger transport system have occurred as a consequence of the government and customer requests for opening new services in new markets. Airlines have to analyze and decide what new routes to operate. First, countries and states with high increments of gross domestic product (GDP) are more attractive to open airline services (i.e. China, Brazil). Second, the level of deregulation at different countries allows airlines to find new routes and new networks to invest in other carriers or open services (i.e. Copa and Continental Airlines). Third, low fares, offered by low cost carrier’s (LCC’s), appear to be the main cause of the increase passenger flow worldwide [Carmona Benitez, 2012]. Fourth, the evolutions of the LCC’s have increased the possibilities of airports to increase their revenues and pax flow by opening more routes operated by LCC’s. Finally, points one to four will occur in many countries after their Civil Aviation Authorities eliminate restrictions on routes and fares giving the opportunities for airlines, airports, federal governments, states and investors from other countries to find new opportunities by identifying the right networks to serve.