Deregulation of Ground Handling Services at Airports

Tesis , 2008 , 97 Páginas , Calificación: 2,3

Economía de las empresas - Política económica

Current occurrence of strikes by ground and cabin staff, the formation of strategic alliances between airlines, mergers and acquisitions of ground handling (GH) companies and the expansion of airport infrastructures dominate the actual news in the aviation sector and reveal noticeable changes and new dynamics as well as new challenges in the industry. The changes did not only start now but began with the introduction of more competition into the market through the liberalization of airlines at the end of the 1980s which was followed by intensified airport competition and the deregulation of the GH market in 1996. The introduction of competition generally leads to more efficient market conditions. Overall, prices for flights have dropped considerably in the past two decades which has led to dramatic increases in air traffic demand and a new strategic environment for all market participants. Nevertheless, ongoing strikes by airline, GH and airport staff reveal that the situation in the aviation industry is far from optimal. The purpose of this paper is to examine the developments in the GH market with regard to their origins, current trends and potential future consequences. The main focus will lie on the analysis of the effects of the deregulation of ground handling services (GHS) at Community airports assessed by the EU Directive 96/67/EC in 1996. The liberalization process of the GH market shall be observed from different angles focusing on the broadly differing stakeholders’ points of view. The thesis is structured as follows: First, an overall framework and background of developments in the aviation industry shall give an introduction to the subject. Second, the market structure of GHS in Europe with a focus on Germany shall be observed and connected to the broader framework of public regulation and deregulation. Third, the effects of the deregulation of GHS at airports will be further specified and elaborated. The analysis of the effects will be segmented into four parts: overall effects, effects on horizontal integration, effects on vertical integration and effects on the employees. Finally, the theoretical concepts and practical findings will be completed by real observations and empirical data obtained from interviews with different stakeholders in the GH industry.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 2. Framework
• 2.1 Developments in the aviation sector
• 2.2 Airlines
• 2.2.1 Traditional Airlines
• 2.2.2 Low cost airlines
• 2.3 Airports
• 2.3.1 Role
• 2.3.2 Activities
• 2.3.3 Types
• 2.3.4 Competition
• 2.3.5 Costs and revenues
• 3. Market structure of ground handling services
• 3.1 Definition
• 3.2 Ground handling market
• 3.2.1 Providers
• 3.2.2 Interests
• 3.3 Analysis of competitive forces
• 4. Economic implications
• 4.1 Airports as natural monopolies
• 4.1.1 Airports as natural monopolies in general
• 4.1.2 Airports as natural monopolies regarding ground handling
• 4.2 Public regulation
• 4.2.1 Reasons for regulation
• 4.2.2 Instruments
• 4.3 Public deregulation
• 4.3.1 Reasons for deregulation
• 4.3.2 Deregulation methods and obstacles
• 5. EU Directive 96/67/EC
• 5.1 Background
• 5.2 Provisions of the Directive
• 5.3 Exemptions
• 5.4 Implementation
• 5.4.1 Implementation of the Directive in Germany
• 6. Effects of the Directive 96/67/EC
• 6.1 Overall effects
• 6.1.1 Prices
• 6.1.2 Quality
• 6.1.3 Competition
• 6.1.4 Centralized infrastructure and access conditions
• 6.2 Horizontal and vertical integration
• 6.2.1 Reasons for integration
• 6.2.1.1 Contracts
• 6.2.1.2 Transaction costs
• 6.2.1.3 Economies of scale and scope
• 6.2.1.4 Learning effects
• 6.2.1.5 Risk reduction
• 6.2.2 Horizontal integration
• 6.2.2.1 Types of horizontal integration
• 6.2.2.2 Need for regulation
• 6.2.2.3 Developments after the implementation of the Directive
• 6.2.3 Vertical integration
• 6.2.3.1 Types of vertical integration
• 6.2.3.2 Need for regulation
• 6.2.3.3 Developments after the implementation of the Directive
• 6.3 Employees
• 7. Empirical study on the position of stakeholders
• 8. Conclusion and outlook

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This diploma thesis examines the deregulation of ground handling services at airports, focusing on the impact of EU Directive 96/67/EC. The work aims to analyze the economic implications of deregulation, assess its effects on competition, prices, quality, and employee relations, and explore the role of integration in the market.

• The economic implications of deregulating ground handling services
• The impact of EU Directive 96/67/EC on the ground handling market
• The role of competition and integration in the deregulated market
• The effects of deregulation on prices, quality, and employee relations
• The position of stakeholders in the ground handling market

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction
• Chapter 2: Framework: This chapter provides background information on the aviation sector, focusing on developments in airlines and airports. It analyzes the roles, activities, types, competition, and cost structures within these sectors.
• Chapter 3: Market structure of ground handling services: This chapter defines ground handling services and examines the market structure, including providers and the interests of various stakeholders. It also analyzes the competitive forces at play.
• Chapter 4: Economic implications: This chapter discusses the economic implications of deregulating ground handling services, particularly examining airports as natural monopolies and the role of public regulation and deregulation. It explores the reasons for and methods of regulation and deregulation, highlighting obstacles to the process.
• Chapter 5: EU Directive 96/67/EC: This chapter analyzes the background, provisions, exemptions, and implementation of EU Directive 96/67/EC, focusing specifically on its implementation in Germany.
• Chapter 6: Effects of the Directive 96/67/EC: This chapter explores the effects of the directive on prices, quality, competition, infrastructure, and employee relations. It examines the reasons for horizontal and vertical integration in the market, including contracts, transaction costs, economies of scale and scope, learning effects, and risk reduction. It also analyzes the types and need for regulation of horizontal and vertical integration, as well as developments following the directive's implementation.
• Chapter 7: Empirical study on the position of stakeholders: This chapter presents an empirical study on the position of stakeholders in the ground handling market.

Schlüsselwörter (Keywords)

This diploma thesis focuses on the deregulation of ground handling services at airports, specifically examining the economic implications of EU Directive 96/67/EC. Key terms and concepts include: ground handling services, deregulation, competition, prices, quality, integration, horizontal integration, vertical integration, stakeholders, EU Directive 96/67/EC, natural monopoly, and aviation sector.

• Universidad: Humboldt-University of Berlin
• Calificación: 2,3
• Autor: Aline Dürr (Autor)
• Año de publicación: 2008
• Páginas: 97
• No. de catálogo: V117223
• ISBN (Ebook): 9783640193189
• Idioma: Inglés
• Etiqueta: Deregulation, Ground, Handling, Services, Airports