Airports Developing Air Services for Cargo versus Passenger Airlines

klm-cargoOver the years Air Service Development has developed into a valuable tool for airports to keep their fate into their own hands. By actively providing air service analyses to airlines,airports are able to expand their client and route portfolio. Besides actively targeting passenger airlines also cargo airlines are being targeted by airports. At the yearly held World Route Development Forum airlines are approached by airports in attempts to convince airlines of flying to their respective airports. This paper provides an overview of the differences in approaching cargo airlines versus passenger airlines. Besides, for sure, cargo plays a contributing role in the revenue generation of passenger airlines, once a passenger airline has decided to start operating a route. The majority of the information provided is from experience of the author, having done passenger and cargo air service development for airports, amongst others: Amsterdam, New Delhi and Cologne Bonn.

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The European Commission Appraisal of Airline Mergers

airline mergersAirliners intending to implement mergers witheconomic effects in the EU aviation transportmarkets have to seek the previous authorizationof the European Commission under the EuropeanMerger Control Regulation (EMCR). Since 1989the Commission blocked two airliners mergers (Ryanair/Aer Lingus, Case M.4439 and Olympic/Aegean Airlines, Case M.5830) and conditionally cleared many more by agreeing with the parties on remedies to fix the expected competition problems. The commonest remedy is the divestiture of landing and taking off airport slots, although the effectiveness of these remedies was questioned because in some cases no competitors used the freed slots. The purpose of this article is to discuss the Commission policy on slot remedies. In particular, it focuses on the questions whether slot remedies are effective tools to resolve the competition problems arising out of airline mergers and which elements should be included in slot remedy packages in order to enhance their effectiveness. These are questions of practical relevance given the cautious approach of the Commission in clearing mergers on the basis of efficiency defence. Thus, offering a set of suitable remedies to restore competition may be the only way for the merging parties to obtain the go-ahead from the Commission for a problematic merger.
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