Airports all over the world are regional centers of growth. They provide access to the worlds most important markets for the domestic economy. Airports interlink economic regions and are the basis for international business relations. Without any doubt, the Federal Republic of Germany has one of the densest airport network in Europe. Especially in populous areas, multiple international and regional airports are competing for potential passengers. Against the background of converting traditional airfields into multi-faceted facilities and shopping malls with runways, in the last decade airports
tout for more than only people willing to leave the city by airplane. They are competing for prospective customers.
As a result of these tendencies, the European airline and airport market is facing emerging competition. The question to be asked under this continuous cost pressure is not whether to react or not on the circumstances. Every single airport shall ask how to deal with that rat race and what its competitive
advantage is. The competition between the recently renamed Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN) is exemplary in this situation and is perfectly illustrating the new competitive situation. Separated by only 50 kilometers air-line distance, it can be assumed that both airports are in a race for supremacy in the Rhine-Ruhr metropolitan region since many years.
The key question to be answered in this context is: Do both airports really compete and if, what are the business segments they are struggling for? How can the airports react on present developments and might they even benefit from a kind of cooperation?
This paper is trying to give answers on the questions mentioned above. In the first part I am going to describe the local aviation market and current airport concepts of each location.
Both airports will be classified in regard to their German and European airport market environment. Describing the traffic
development within the last five years and analyzing the recent situation of both companies, I will try to forecast how the airports are going to evolve in the midterm horizon. In a second step I will examine kind and degree of competition between CGN and DUS. Moreover I will discuss whether an airport
cooperation might be useful or even other solutions represent a valuable solution to guarantee a financially healthy future for both airports.
Finally I am going to develop strategic recommendations for the operators.
Table of Contents
1 Introduction
2 Rhine-Ruhr Metropolitan Region – A Market Profile
3 Airport Operation Concept and Development
3.1 Dusseldorf Airport (DUS)
3.2 Cologne Bonn Airport (CGN)
3.3 Airport and Traffic Development DUS & CGN
4 Competition vs. Cooperation
4.1 Competition
4.2 Cooperation
4.3 Recommended Management Actions
5 Conclusion and Outlook
Objectives & Research Themes
This paper examines the competitive dynamics and potential for cooperation between Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN) within the Rhine-Ruhr metropolitan region, evaluating their distinct operational strategies and market segments to provide strategic management recommendations.
- Analysis of the economic environment of the Rhine-Ruhr metropolitan region.
- Evaluation of the contrasting operation concepts of DUS (hub-focused) and CGN (low-cost focused).
- Examination of the intensity and nature of competition regarding passengers and air cargo.
- Assessment of the viability and implications of airport cooperation.
- Development of strategic management actions for both airport operators.
Excerpt from the Book
3.2 Cologne Bonn Airport (CGN)
At first glance, one might think, Cologne/Bonn Airport plays the second fiddle in the Rhine-Ruhr Metropolitan Region all along. But this appears only at a shallow look. To understand this, the reader needs to know, that the airport operation concept of CGN is completely different to the strategy of Dusseldorf. Not so long ago the airport was eminently influenced by dynamic changes which had the ability to turn traditional airline hierarchies upside down. The market entry of LLCs rapidly changed the entire airline and airport environment in Germany at the beginning of 21st century (Garvens 2008, p. 362).
Like many German airports, CGN was trapped in a downward spiral caused by the world economic crisis and own mismanagement. The airport was in stormy waters when top management decided a comprehensive reshuffle and developed a survival strategy for the cash-stricken company. The new goal was to align the airports policy to attract more of these new ‘No-Frills airlines’ to gain a higher share of LCC traffic. In 2002 first deals were closed with Germanwings and Hapag-Lloyd Express. Indeed their strategy and risk paid off in terms of passenger numbers and an extremely positive business development. Thus, the airport was able to handle a maximum number of passengers with lower costs. Only between 2003 and 2006 Cologne was able to increase its passenger volume by more than 80%. Alone in 2003, CGN poached approximately 800.000 passengers from DUS. The positive trend continued and CGN became Germany's fastest growing commercial airport (Garvens 2008, p. 367 ff.).
Summary of Chapters
1 Introduction: Provides an overview of the regional airport market and sets the research focus on the competitive relationship between DUS and CGN.
2 Rhine-Ruhr Metropolitan Region – A Market Profile: Describes the economic significance and demographic structure of the Rhine-Ruhr area, highlighting its high market potential for both airports.
3 Airport Operation Concept and Development: Analyzes the individual strategies, traffic developments, and business models of DUS and CGN.
4 Competition vs. Cooperation: Evaluates the intensity of competition between the two airports and discusses the feasibility and potential benefits of a collaborative approach.
5 Conclusion and Outlook: Summarizes the key findings and suggests that while they serve different markets, both airports should maintain their core competencies while considering cooperation in the future.
Key Words
Dusseldorf Airport, Cologne Bonn Airport, Rhine-Ruhr, Airport Competition, Hub Airport, Low-Cost Carrier, LCC, Air Cargo, Catchment Area, Airport Strategy, Regional Development, Strategic Management, Passenger Traffic, Airport Cooperation, Market Analysis
Frequently Asked Questions
What is the primary focus of this research paper?
The paper evaluates the competition between Dusseldorf Airport and Cologne/Bonn Airport, identifying their distinct operational concepts and analyzing whether cooperation is a viable strategic option for their future growth.
What are the central thematic fields covered?
The core themes include regional economic environments, airport business models (hub vs. low-cost), air traffic development, competitive analysis of market segments, and strategic management recommendations.
What is the primary research goal?
The main objective is to understand if these two nearby airports truly compete, which specific business segments they are struggling for, and how they can adapt to current market pressures.
Which methodology is applied in this analysis?
The author uses a qualitative market analysis based on traffic data, company reports, and academic literature to classify the airports within the German and European market environment.
What does the main body of the work cover?
The main body details the operational concepts, analyzes historical and current traffic data, compares market shares, and discusses the pros and cons of potential cooperation.
Which keywords best characterize the work?
Key terms include Airport Competition, Rhine-Ruhr, Low-Cost Carrier, Hub Strategy, and Strategic Management.
Why is CGN considered a low-cost specialist compared to DUS?
CGN shifted its strategy in the early 2000s toward low-cost carriers and cargo, benefiting from operational flexibility like 24-hour flight authorization, whereas DUS evolved into a full-service hub for major network carriers.
What role does cargo play at these two airports?
Cargo is a central pillar for CGN, which operates as a major hub for integrators, whereas DUS primarily handles cargo via the belly space of passenger aircraft, making it less significant compared to CGN.
How does the night flight restriction affect the airports differently?
The strict night curfew at DUS limits its ability to attract large cargo integrators, whereas CGN’s 24-hour operation permit provides a significant competitive advantage for cargo and express freight.
- Quote paper
- Diplom-Kaufmann Sebastian Wagner (Author), 2013, Airport operation concepts of Dusseldorf and Cologne/Bonn, Munich, GRIN Verlag, https://www.grin.com/document/272861
