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These pages provide analysis of economic and policy developments affecting the financial performance of the global airline industry.
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1577 reports found
Economic regulation
The case for independent economic regulation of airports and air navigation service providers (ANSPs) is clear. It improves efficiency and productivity throughout the aviation industry and it encourages timely and cost-effective new investment
- Market & Industry Issues
- Infrastructure
Parochialism in international aviation: the paradox of airline ownership and control
by Dan Edwards, UK Civil Aviation Authority; The airline industry, in common with other major business sectors, is currently seeing a lot of speculation and proposals for mergers and acquisition activity. However, in contrast to other sectors such as steel or telecoms, the proposed airline deals are of a national rather than global character. This is not a coincidence, but linked to the tight ownership and control rules within the industry that restrict foreign investment in national airlines
- Market & Industry Issues
- Business Models
Does the S-Curve still exist?
by Urs Binggeli and Lucio Pompeo, McKinsey & Company; The S-Curve effect is the phenomenon by which airlines that have a high share of frequencies on a route can attain disproportionately high market shares. With the S-Curve in mind, network managers have historically looked to build a dominant frequency position on certain routes to capture a high share of traffic and revenues. But with significant changes in the airline industry structure in recent years, does the S-Curve still exist?
- Market & Industry Issues
- Profitability
Investment incentives and airport regulation
by David Starkie, Economics-Plus Ltd; Does price-cap regulation create incentives to under-invest at privatized airports? Empirical evidence UK and Ireland, indicates that the regulated airport companies have inclined towards over-investment rather than under-investment.
- Public Policy Issues
- Infrastructure
Airline cost performance
Cost efficiency is critical for an airline's ability to compete and survive
- Market & Industry Issues
- Cost
Value chain profitability
The airline industry has been unable to generate sufficient returns for existing investors. Unless invested capital is used more effectively - and returns improved - future investment will either be constrained or delivered inefficiently or both.
- Market & Industry Issues
- Profitability
Value chain profitability: summary report
Summary of full report
- Market & Industry Issues
- Profitability
Profitability: Does Size Matter?
Last year eight airlines made operating profits over $500m, three earning more than $1bn. However, there is no correlation of size with profit margins and only a slight link with operating profits.
- Market & Industry Issues
- Profitability
Slot concentration at network hubs
by David Starkie, Economics-Plus Ltd; A high concentration of take-off and landing slots in one airline at major hub airports can represent an economically efficient outcome. Concern has previously been raised that the concentration of slots is anti-competitive, leading to calls for slot re-distribution or for new or used slots to be allocated to new entrants only.
- Public Policy Issues
- Infrastructure
Impact of Sept 11th 2001 Attack
Estimated impact of the September 11th on travel.
- Market & Industry Issues
- Shocks
Airport regulation
A good airport regulatory structure - providing better rather than just increased regulation - can benefit both airports and airlines in terms of greater efficiency and low and stable financing costs.
- Public Policy Issues
- Infrastructure
Impact of Avian Flu
Analysis of the impact of SARS and the threat of avian flu.
- Market & Industry Issues
- Shocks
The Economic Impacts of Air Service Liberalization - Intervistas
This study confirms that liberalising air travel directly benefits economies by increasing GDP, employment, travel and tourism, and exports.
- Public Policy Issues
- Commercial Freedom
Airline network benefits
Based on a survey and statistical evidence, this study provides strong evidence of the wider benefits - in terms of economic development and growth - generated by the global air transport network.
- Public Policy Issues
- Value of Aviation
Airport privatization
Ten key lessons for future airport privatization, drawn from a study of the successes and failures of past privatization of twelve airports in Europe, Asia-Pacific and Latin America.
- Public Policy Issues
- Infrastructure
