Small regional airport performance and Low cost carrier operations

Abstract

Abstract Low cost carriers have become significant players in air transport market over the past 20 years. They have a significant impact on the operation of many regional airports. Such airports are often used as secondary airports for low cost carriers operations. Because of their market power, they are able to reduce the amount of charges at the regional airports that do not have such bargaining power. This phenomenon manifests primarily in relation to small regional airports of up to 1 million passengers handled per year. The majority of such airports are unable to achieve positive economic results. The aim is to find out how LCC traffic affects small regional airports operation and efficiency. Based on the analysis of historical data from the selected airports, the author examines the impact of a significant proportion of low cost carriers on the economic performance of selected airports. He compares developed airports with an increasing share of LCCs and airports without LCC traffic. It also examines the low-developed airports with a low LCC share. His research was supplemented by expert interviews with the management of the selected regional airports. The comparison of airport performance in the passenger transport, such as passenger numbers, airport revenue, and economic outturn are described in the article. For the purpose of this research, the airport up to 1 million checked-in passengers and over 1 million checked-in passengers has been selected. In addition to the information mentioned in his research, he also included the amount of handled cargo and the performance was recalculated and compared in the Work Load Units (WLU). The author has also compared the KPI basis with the number of employees in the survey. The research findings confirm that on one hand, the Low Cost carriers operate in such manner that it increases the airport’s operating performance (number of checked-in passengers) but on the other hand, the way they operate also reduces the efficiency of the airport. If the airport operates mostly classic, network airlines and charter airlines, it can achieve a positive economic outturn even though it handles less than 1 million passengers per year.