ABSTRACT
It used to be commonly believed that most major airports were monopolies with signifi cant market power, with their precise role being determined by the passenger demand in the catchment area. Airline choice was considered to be limited to particular airports because of government bilateral agreements. While this may still be true in a few markets, there are now many opportunities for airports to compete for passengers, freight and airlines. The modern-day airline industry, which has been transformed in many places from a regulated and public sectorcontrolled activity into a liberalised and commercially orientated business, has played a major role in this changing airport situation. Certain airline developments, including the formation of global alliances and the emergence of the low-cost sector, have been particularly important in creating new views on airport competition.
