​​​​​​​​​​​​​​​​​​​​​​​These pages provide analysis of economic and policy developments affecting the financial performance of the global airline industry.​​​​​​​​​​

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1189 reports found

01.04.2007

Airline liberalization: OXERA report

OXERA research report on airline liberalization

  • Public Policy Issues
  • Commercial Freedom
01.04.2007

Light-handed regulation of airports: The Australian experience

by Peter Forsyth, Monash University; Australia has been experimenting with light-handed regulation of its major airports since 2002. However, there remains ambiguity as to what the system seeks to achieve and its effectiveness. From a broad efficiency perspective it has performed reasonably well, though not without its problems. In terms of minimizing the abuse of market power the system has been less successful.

  • Public Policy Issues
  • Infrastructure
01.03.2007

Airline cost performance: update

Updated analysis with 2006 data

  • Market & Industry Issues
  • Cost
02.02.2007

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
01.01.2007

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
01.09.2006

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
01.09.2006

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
30.06.2006

Airline cost performance

Cost efficiency is critical for an airline's ability to compete and survive

  • Market & Industry Issues
  • Cost
30.06.2006

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
02.06.2006

Value chain profitability: summary report

Summary of full report

  • Market & Industry Issues
  • Profitability
01.06.2006

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
01.06.2006

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
02.05.2006

Impact of Sept 11th 2001 Attack

Estimated impact of the September 11th on travel.

  • Market & Industry Issues
  • Shocks
01.05.2006

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
01.05.2006

Impact of Avian Flu

Analysis of the impact of SARS and the threat of avian flu.

  • Market & Industry Issues
  • Shocks