INTEGRATION AND CONCENTRATION OF EUROPEAN AIR TRANSPORT MARKET

Abstract

During the last years air transport stakeholder's behaviors have witnessed deep modifications. Airlines competition has been exacerbated by economic downturns, while airport competition emerged as a result of the less governmental intervention in airport investments. The first result of this process is a mix-model adopted by EU airlines in the domestic market, which implies that network airlines have adopted few of the strategies that have guaranteed the establishment of the low fares carriers, while low cost carriers have been continuously increasing the number of major airport served. The volatility of the air transport deregulated market has been analysed in the scientific literature and these aspects can be perceived as further evidences of the increased volatility. In order to limit the negative effects of volatility in the EU market, air transport players have been sought manners to enhance stability. Airlines mergers or acquisitions, buyout of airport operator's shares by airlines, airport-airline partnership for ad-hoc infrastructure development or buyout of airport's shares by other airport operators are examples of this will for a greater stability of the system. This paper analyses all these aspects highlighting the pursuing of greater stability by the fragile EU air transport system.