ABSTRACT

Delivering air transport services involves a complex set of individual components: airlines, airports, airport access, air navigation services, etc. Individual companies or agencies—some of which are motivated and disciplined by market forces and others through institutions and regulations—provide these services, and there is no template that applies to all countries. The ways these suppliers interact in the supply chain affects the nature of the air services supplied and the efficiency with which they are supplied. The focus here is on the interaction between airlines and airports, and in particular on the ability of airlines to limit the potential market power that airports may enjoy.