Sage Journals: Discover world-class research

Abstract

We analyze the extent of market power of Amsterdam airport Schiphol in its aviation related business. First, we use information on airport charges, and a natural experiment with a passenger tax, to propose a detailed delineation of markets for the airport. Our market definition is in line with the European competition case practice, and we consider the applied methodology as also relevant for other airports. As the second step, we assess the market power of Amsterdam airport Schiphol in all the markets we have defined. We empirically analyze overlaps in the markets served by the airport and catchment areas of the airport, and demonstrate how this approach is helpful in determining the extent of the market power of an airport.

Keywords

airports aviation competition policy market power regulation policy

Get full access to this article

View all access options for this article.

References

Bilotkach

and Mueller

(2012) “Supply Side Substitutability and Potential Market Power of Airports: Case of Amsterdam Schiphol”, Utilities Policy, 23(C), 5–12.

Bishop

and Walker

(2010) The economics of EC competition law. Sweet & Maxwell.

Competition Commission (2009) “BAA airports market investigation”, March 2009.

European Commission (1997) Case No COMP/M.786 Birmingham International Airport.

European Commission (1998) Case No COMP/M.1124 Maersk Air / LFV Holding.

European Commission (2005) Case No COMP/M.3770 Lufthansa / Swiss.

European Commission (2006) Case No COMP/M.4164 Ferrovial / Quebec / GIC / BAA.

European Commission (2008) Case No COMP/M.5141 KLM / Martin Air.

European Union (2009) “Directive 2009/12/EC of the European Parliament and of the Council of 11 March 2009 on airport charges”, Official Journal of the European Union, 14.3.2009, L 70/11.

10.

Forsyth

Gillen

Mueller

and Niemeier

H.-M.

(eds) (2010) Airport Competition, Ashgate Publishing.

11.

Gordijn

, and Kolkman

(2011) Effects of the Air Passenger Tax. Behavioral responses of passengers, airlines and airports. KiM Netherlands Institute for Transport Policy Analysis.

12.

ICAO (2004) ICAO's Policies On Charges For Airports And Air Navigation Services, seventh edition.

13.

ICAO (2012) ICAO's Policies On Charges For Airports And Air Navigation Services, ninth edition.

14.

International Competition Network (2006) “Merger Guidelines Workbook”.

15.

Motta

(2004) Competition policy: Theory and practice. New York and Melbourne: Cambridge University Press.

16.

Nemeth

and Niemeier

H.-M.

(2012) “Airline mergers in Europe – An overview on the market definition of the EU commission”, Journal of Air Transport Management, 22: 45–52.

17.

NMa (2009) “Besluit number 200120/137.BT1377”, accessed at https://www.acm.nl/nl/download/bijlage/?id=3110 [27 May 2013].

18.

Polk

, and Bilotkach

(2013) “The Assessment of Market Power of Hub Airports,” Transport Policy, 29: 29–37.

19.

Schiphol Group (2008) Schiphol Airport Charges and Conditions. 1 April 2008.

20.

Schiphol Group (2011) Schiphol Group Annual Report 2011.

21.

Schiphol Group (2013) Schiphol Airport Charges and Conditions. 1 April 2013.

22.

Tretheway

M.W.

and Andriulaitis

R.J.

(2010) “Airport Competition for Freight”, In Forsyth (eds), Airport Competition. Ashgate Publishing, 137–150.

23.

Tretheway

M.W.

and Kincaid

(2010) “Competition Between Airports: Occurence and Strategy”, In Forsyth (eds), Airport Competition, Ashgate Publishing, 119–136.