Are Low Cost Carriers a problem for the management of regional airports?

Abstract

Authors examine the impact of low cost carriers on regional airport performance. The question is whether a business model oriented predominantly on low cost carrier operation is sustainable. These issues are explored in a developed German economy, which is not affected by the problems of the transformation of the economy. Despite the fact that the selected regional airports handle millions of passengers, their results are not positive. On the contrary, Austrian regional airports make a profit, even though they carry a comparable number of passengers. The type of airport ownership does not have a significant effect on its performance. If an airport is not subsidized, the business model must be altered, or it is necessary to find other sources of income, for example in the non-aviation area. The question is whether this issue should be dealt with by the EU institutions in the area of significant market power and oligopolistic practices of low cost carriers.

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