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Impact of airport expansion options on competition and choice
Posted on: 29 April 2014
By: mackene
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Filed under: News
Heathrow Airport commissioned this report from Frontier Economics (Europe) which looked at the impact of different options for airport expansion on competition and choice for passengers. As airport capacity gets congested, passengers are likely to suffer in a number of ways, including rising ticket prices (to keep demand down to the available capacity) and a restricted choice of direct routes. With Heathrow full, passengers are already experiencing these impacts. Moreover, with demand for air travel continually rising and Gatwick also likely to be full before 2030, these costs are set to grow significantly. Frontier’s report is based on empirical analysis of detailed route-level passenger data to model the extent to which a lack of capacity has driven up ticket prices at Heathrow.
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