ABSTRACT
Freeman defines stakeholder in an organisation as ‘any group or individual who can affect or is affected by the achievement of the organisation’s objectives’. Air route development in the form of new route establishment or growth of existing routes has always been perceived as vital for both airports and airlines. Airline revenues are derived from sales of air tickets and from onboard and offboard ancillary services. Total fare revenues relate to the volume of passengers and the average fare. In the case of a strong airline brand, a premium may be levied on passengers, subject to the prevailing competitive conditions. Airport revenues can be classified into aeronautical, arising from airline operations, and nonaeronautical, related to commercial activities taking place both inside a terminal and outside of it. Local authorities generate revenue mainly from taxes and state transfers. Transaction cost theory may provide a solid framework to understand and analyse the forces governing the tripartite relationship.
