Frontier (Europe)’s aviation practice has today published a new client briefing, ‘The Economics of Airport Development’. The briefing asks to what extent governments should rely on measures of economic development, as opposed to conventional investment appraisal techniques, when promoting airport expansion. The full briefing can be downloaded here.
Current forecasts suggest that the present runway crunch in the UK is a taste of what is to come around Europe, with more than twenty European airports expected to reach full capacity in the next twenty years. However, at the same time there are many small regional airports struggling to earn an adequate return on their capital. This leaves the question of whether there is too much or too little airport development, and whether it is happening in the right places.
Frontier (Europe) regularly advises airports and airlines on a wide range of issues including economic regulation and investment appraisal.