Airport market power

Airport market power

Is inter-airline competition relevant?

In this series of notes we have begun to explore the issue of airport market power and to identify when direct regulation of airport charges may or may not be needed. I have argued that there is no one size fits all solution to this problem and regulators need to conduct proper market power tests before applying economic regulation. Here I dive a little deeper into the demand side factors that regulators consider and specifically how competition between airlines affects the issue.

Airport market power: Is inter-airline competition relevant?