ABSTRACT
Chapter 1 has already described how the nature of airports has been transformed very substantially in the last few decades. One area where there has been a dramatic change is in the level of airport competition that exists. When airports were considered to be solely suppliers of transport infrastructure, they were often viewed as monopoly providers. Passenger demand was determined by the catchment area and the airlines’ choice of airport was severely limited by the system of restrictive bilateral agreements. However, with airline deregulation and liberalisation spreading to many parts of the world, markets have been opened up to much more potential or actual competition between airlines and, as a result, between airports as well. This has allowed different types of airline developments, such as the formation of global alliances and the emergence of the low-cost sector, which rely on the use of certain airport business models as part of their competitive strategy. Moreover the move towards commercialisation and privatisation of the airport industry (see Chapter 8) has meant that airport operators have a much more competitive and businesslike outlook in seeking new, or retaining existing, customers.
