Airport competition: Shifting dynamics as airline power tightens grip

In the ever-evolving landscape of European aviation, new analysis from ACI EUROPE has shed light on the shifting dynamics of competition between airports. The synopsis, titled “Fierce Competitors, Fragile Foes,” highlights a paradigm shift in the aviation market, where the growing influence of airlines is placing increasing pressure on European airports, impacting their financial stability and resilience.

The study builds upon the findings of Frontier Economics’ “Airport Competition in Europe: Recent and Future Developments,” emphasising how competition among airports has evolved, now prominently unfolding on a pan-European scale. With close to 700 airports operating across Europe, the choice of routes, aircraft bases, and growth prospects lies largely in the hands of only seven major airline groups. These airlines wield significant market power as they determine which airports will serve their needs.

The COVID-19 pandemic has further amplified the influence of airlines over airports, as factors like the relentless expansion of Ultra-Low Cost Carriers, accelerated airline consolidation, and tight capacity management have come into play. ACI EUROPE’s comprehensive data on route openings and closures, commonly referred to as “route churn,” along with fluctuations in capacity on existing routes, provide undeniable evidence of airports constantly striving to attract and retain air services amidst fierce competition.

Find out more and download your copy of the synopsis here.