ABSTRACT
The transformation of European aviation from a series of bilateral agreements between governments and their national airlines to a single European market has had spectacular impacts on airline productivity and price. The airline product has been redefined by the unbundling of services such as business class as passengers chose price rather than service competition. The use of secondary airports has resulted in planes achieving quicker turnaround times with more rotations per day. Passengers have responded positively to the new, smaller, less congested airports. Point-to-point services from local airports have resulted in lower fares and reduced travel times compared with previous routings through hub airports.
