Competitive interaction between airports, airlines and high-speed rail

212 Pages·2009·3.12 MB·English

by  OECD

14 5
Competitive interaCtion
between airports, airlines
and HigH-speed rail
How should airports be regulated to contain market 
power? This report first examines whether they need 
to be regulated at all. It concludes that because  Competitive
regulation is inevitably imperfect and costly, policy  C E
o
makers should establish conditions for competition 
m r
to emerge between airports in preference to  p interaCtion between
e T
t
comprehensive regulation, whenever possible.    it n
i
v
Economic regulation is sometimes necessary, such  e E airports, airlines
i
n
as when airports are heavily congested. The report  t C
ae
determines which approaches are likely to work best  irr  
and also assesses strategies for managing greenhouse  linaCt H and HigH-speed rail
ei
gas emissions. It finds that although including  so C
n
a
aviation in an open emission trading scheme  n b r
de
could help mitigate emissions efficiently across  t a
Hw
the economy, it should not be expected to produce  ige E
He
major cuts in Co -emissions in aviation itself.    n
2 -s s
pa
ei E
Finally the report identifies the economic conditions  edrp
under which high-speed rail can provide a  ror r
at   R O U N D
competitive substitute for aviation, revealing the  ils, T
limited relevance of rail to reducing greenhouse gas 
r
145
emissions from this part of the transport market.
T A B L E
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www.internationaltransportforum.org
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www.oecd.org/publishing
(74 2009 05 1 P1) ISBN 978-92-821-0245-9 2009

COMPETITIVE
E
R
INTERACTION BETWEEN
T
N
AIRPORTS, AIRLINES E
C

AND HIGH-SPEED RAIL
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R O U N D
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T A B L E
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ISBN 978-92-821-0245-9 (print)
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TABLE OF CONTENTS –
TABLE OF CONTENTS
SUMMARY OF DISCUSSIONS .................................................................................................... 7
Impacts of Airports on Airline Competition: Focus on Airport Performance and
Airport-Airline Vertical Relations, by Tae H. OUM (Canada) and Xiaowen FU
(Hong Kong) .................................................................................................................... 31
1. Introduction ................................................................................................................ 36
2. Airport Revenue Structure, Regulation and Pricing................................................... 38
3. Airport’s Market Power ............................................................................................. 41
4. Airport Dominance and Airline Hub Premium, and Implications for Airline-Airport
Co-operation ............................................................................................................... 45
5. Airport-Airline Vertical Relationship ........................................................................ 48
6. Summary and Conclusion .......................................................................................... 51
The Airport Industry in a Competitive Environment: A United Kingdom
Perspective, by David STARKIE (United Kingdom) .................................................. 67
1. Introduction ................................................................................................................ 71
2. Size and Diversity ...................................................................................................... 71
3. Ownership and Capital Markets ................................................................................. 72
4. Competition for Contracts .......................................................................................... 74
5. Competitive Hinterlands ............................................................................................ 76
6. Financial Performance................................................................................................ 79
7. Conclusions ............................................................................................................................ 81
The Impact of Climate Change Policy on Competition in the Air Transport Industry,
by Peter FORSYTH (Australia) ................................................................................................. 95
1. Introduction .............................................................................................................. 100
2. Climate Change Mitigation Policies and Aviation: An Outline ............................... 101
3. Emissions Reduction Options .................................................................................. 106
4. Climate Change Policies and Their Impacts ............................................................ 108
5. Impacts of Policies on Airline Competition, Fares and Profits ................................ 111
6. Impacts of Free Permits on Competition, Fares and Profits .................................... 119
7. Competition and International Markets.................................................................... 123
8. Conclusions .............................................................................................................. 125
COMPETITIVE INTERACTION BETWEEN AIRPORTS, AIRLINES AND HIGH-SPEED RAIL– ISBN 978-92-821-0245-9 – © OECD/ITF, 2009
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–TABLE OF CONTENTS
The Role of Accessibility in Passengers’ Choice of Airports,
by Marco KOWENHOVEN (The Netherlands) ......................................................... 129
1. Introduction .............................................................................................................. 133
2. Definitions of Accessibility ...................................................................................... 136
3. Access Mode Choice ................................................................................................ 137
4. Airport Choice .......................................................................................................... 142
5. Case Study: The Effects of the Introduction of New Rail Modes ............................ 144
6. Case Study: Ticket Tax in The Netherlands............................................................. 151
7. Conclusions .............................................................................................................. 159
The Economic Effects of High-Speed Rail Investment, by Ginés DE RUS (Spain) 165
1. Introduction .............................................................................................................. 170
2. The Costs and Benefits of a New HSR Line ............................................................ 172
3. The Economic Evaluation of HSR Investment ........................................................ 178
4. Intermodal Effects .................................................................................................... 181
5. Pricing ...................................................................................................................... 184
6. Conclusions .............................................................................................................. 190
LIST OF PARTICIPANTS ............................................................................................. 201
COMPETITIVE INTERACTION BETWEEN AIRPORTS, AIRLINES AND HIGH-SPEED RAIL – ISBN 978-92-821-0245-9 – © OECD/ITF, 2009
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SUMMARY OF DISCUSSIONS –
SUMMARY OF DISCUSSIONS1
COMPETITIVE INTERACTION BETWEEN AIRPORTS, AIRLINES AND HIGH-SPEED RAIL– ISBN 978-92-821-0245-9 – © OECD/ITF, 2009