Economics Report Library

Infrastructure costs

• Market & Industry Issues
• Cost

Infrastructure costs

Airlines and passengers are estimated to have paid at least US$92.3 billion for the use of airport and air navigation infrastructure globally in 2011, equivalent to 14.4% of the cost of transport.

• Public Policy Issues
• Infrastructure

Impact of Hurricane Sandy

Analysis of the impact on industry operations and revenues from the Hurricane Sandy at the end of October 2012.

• Market & Industry Issues
• Shocks

Explaining over-capacity in the airline industry - by Oliver Wojahn

• Market & Industry Issues
• Profitability

Benefits of Alliances and Joint Ventures

Research discussing potential for pro-competitive efficiency gains and benefits for consumers from airline alliances and joint ventures.

• Market & Industry Issues
• Business Models

Impact of Japan Earthquake

Analysis of the economic and air transport market impact of  the Japanese earthquake and tsunami in March 2011.

• Market & Industry Issues
• Shocks

Revisiting Alliances

by Jan Brueckner, Darin Lee and Ethan Singer; Do airline alliances lead to lower fares for passengers or do they do more harm than good?

• Market & Industry Issues
• Business Models

Impact of Ash Plume

Analysis of the impact on industry operations and revenues from the eruption of Iceland's Eyjafjallajokull volcano in April 2010.

• Market & Industry Issues
• Shocks

Network vs. LCC competition and airfares: New US empirical evidence

by Prof. Jan K. Bruechner, Dr Darin Lee and Ethan Singer; When considering airline mergers, both the US Department of Justice and European Commission have relied on published studies from the 1990s which suggest based on the market structure of that time there can be adverse competitive effects from reducing the number of network airlines on a given route.  This note describes a new comprehensive research study that now shows the structure of the US domestic market has changed dramatically in the past decade.

• Market & Industry Issues
• Competition

Understanding airport benchmarking

by Michael Tretheway and Ian Kincaid, InterVISTAS; Rising infrastructure charges are another current challenge and this essay looks at airport benchmarking, an important tool to spur efficiency and pricing improvements where the market or regulator is ineffective. Michael Tretheway and Ian Kincaid take the reader through some of the pitfalls.

• Public Policy Issues
• Infrastructure