Low-cost carriers and secondary airports: Three experiences from Italy

Abstract

Abstract The paper analyses the relationship between low-cost carriers and secondary airports in Italy, resulting from the deregulation process and from the changes in the internal market due to the weak situation of the former flag carrier Alitalia. To do that, the paper discusses the incentive schemes used by airports to attract airlines. The paper begins by providing a general framework for incentives, supporting the analysis by means of three case studies (Aeroporti di Puglia, Alghero׳s airport, and Emilia-Romagna׳s airports). Findings from the study show that discounts on landing and/or terminal charges, revenue-guarantee schemes, and co-marketing agreements are the instruments most often used in Italian airports. The majority of them are publicly owned, entailing the use of public money to cover losses regardless of the real impacts of these strategies in economic and tourism terms. Therefore, to strengthen their role, airport policies need to be carefully defined and be included in a wider strategy aimed at promoting destinations and local development, rather than simply promoting air traffic.