ABSTRACT

The level and style of airport charges are influenced by several underlying factors. Broadly, the greater the airport's market power, the higher will be the charges. When economic regulation sheltered airlines from competitive pressures, air fares could be high enough to yield rather handsome airline revenues, often exceeding the norm that would apply in a competitive market. By 1969, all the major airlines had left the close-in Houston airport, Hobby, and had switched to the new Houston Intercontinental Airport, which was about 30 km from down-town Houston. The two European early-mover LCCs - EasyJet and Ryanair - have made considerable use of low-charge airports. Ryanair has chosen minor European ports of two kinds: those serving small cities that have tourist potential in their own right; and secondary ports for major cities, often at some distance from the major city. While Ryanair and EasyJet did begin services from other EU countries to French ports, mainly outside Paris, they found it difficult to obtain slots at the Paris ports of Orly and Charles de Gaulle (CDG).