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Expanding airport capacity: Competition and connectivity. The case of Gatwick and Heathrow

Posted on: 12 November 2014
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Filed under: News

The International Transport Forum has published a report which examines the likely responses from airlines in all segments of the market: the local hub carrier, BA, other network airlines, short and long haul low-cost carriers and charter airlines to proposals from the Airports Commission on expanding the UK’s long-term aviation capacity. It identifies the main drivers of airline behaviour and considers the possible influence of changes to existing business models and the introduction of new types of aircraft, such as the Boeing Dreamliner and Airbus A350. The report develops six sets of responses, three following expansion of Gatwick and three following expansion of Heathrow, to test the likely evolution of the market. As the future of the highly dynamic aviation market is uncertain, it checks the resilience of each across five different scenarios of how the global aviation sector may develop in the future. The analysis maps the implications for connectivity and potential benefits to the consumer through airline competition and relieving congestion at airports and reducing the associated economic rents. This report is part of the International Transport Forum’s Country Specific Policy Analysis (CSPA) series. These are topical studies on specific transport policy issues of concern to a country carried out by ITF on request.

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