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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Rhine-Ruhr Metropolitan Region – A Market Profile
- Airport Operation Concept and Development
- Dusseldorf Airport (DUS)
- Cologne Bonn Airport (CGN)
- Airport and Traffic Development DUS & CGN
- Competition vs. Cooperation
- Competition
- Cooperation
- Recommended Management Actions
- Conclusion and Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper analyzes the competitive and cooperative potential between Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN), located in close proximity within the Rhine-Ruhr metropolitan region. The objective is to understand their competitive dynamics, assess the possibility of cooperation, and provide strategic management recommendations for both airports. The analysis considers the airports' operational concepts, market environment, traffic development, and the potential benefits and challenges of both competition and collaboration.
- Competitive landscape of DUS and CGN within the Rhine-Ruhr region.
- Analysis of the operational concepts and development of DUS and CGN.
- Evaluation of the competition and cooperation potential between the two airports.
- Assessment of the Rhine-Ruhr metropolitan region's economic impact on airport operations.
- Strategic management recommendations for the future of DUS and CGN.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory chapter establishes the context of the study, highlighting the intense competition within the European airport market and focusing on the case study of Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN). It emphasizes the need for airports to adapt to cost pressures and develop competitive advantages, framing the central question of whether these two nearby airports primarily compete or could potentially cooperate. The chapter outlines the paper's structure, promising an analysis of the market, airport concepts, traffic development, competition, cooperation possibilities, and concluding with strategic recommendations for airport operators.
Rhine-Ruhr Metropolitan Region – A Market Profile: This chapter provides a detailed overview of the economic and geographic context of DUS and CGN. It highlights the Rhine-Ruhr region's significance as Germany's most populated and economically powerful area, contributing substantially to the nation's GDP and exports. The chapter emphasizes the region's diverse economy, strong IT and media sectors, and excellent transportation infrastructure, including air, rail, and water connections. It stresses the region's polycentric nature with numerous large cities, creating a substantial catchment area for both airports and highlighting the overlapping service areas and resulting competitive pressures. The high substitution coefficient of 0.75 between CGN and DUS, based on their overlapping catchment areas, is introduced, laying the groundwork for further analysis of their competition.
Schlüsselwörter (Keywords)
Airport competition, airport cooperation, Dusseldorf Airport (DUS), Cologne/Bonn Airport (CGN), Rhine-Ruhr metropolitan region, aviation market, traffic development, strategic management, competitive advantage, catchment area, economic impact.
Airport Competition and Cooperation in the Rhine-Ruhr Region: FAQ
What is the main topic of this document?
This document analyzes the competitive and cooperative potential between Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN) within the Rhine-Ruhr metropolitan region in Germany. It examines their competitive dynamics, explores the possibility of cooperation, and offers strategic management recommendations.
What are the key objectives of the analysis?
The main objectives are to understand the competitive landscape between DUS and CGN, assess the feasibility of cooperation, and provide strategic recommendations for both airports' management. The analysis considers operational concepts, market environment, traffic development, and the potential benefits and challenges of competition and collaboration.
Which airports are the focus of this study?
The study focuses on Dusseldorf Airport (DUS) and Cologne/Bonn Airport (CGN), both located in close proximity within the densely populated and economically significant Rhine-Ruhr metropolitan region of Germany.
What key themes are explored in the document?
Key themes include the competitive landscape of DUS and CGN, their operational concepts and development, the potential for both competition and cooperation, the economic impact of the Rhine-Ruhr region on airport operations, and strategic management recommendations for the future of both airports.
What is the significance of the Rhine-Ruhr region?
The Rhine-Ruhr region is crucial because it's Germany's most populous and economically powerful area, significantly contributing to the nation's GDP and exports. Its diverse economy, strong IT and media sectors, and excellent transportation infrastructure create a large catchment area for both airports, leading to overlapping service areas and competitive pressures.
How does the document describe the relationship between DUS and CGN?
The document explores both the competitive and cooperative aspects of the relationship. It examines the competitive pressures resulting from their overlapping catchment areas and the potential benefits of cooperation to address challenges and optimize resource utilization. A high substitution coefficient (0.75) between the two airports highlights the significant overlap in their served markets.
What type of recommendations are provided?
The document provides strategic management recommendations for the future development and operation of DUS and CGN, considering both competitive and cooperative strategies. These recommendations are based on the analysis of the airports' operational concepts, market environment, traffic development, and the potential benefits and challenges of both competition and collaboration.
What aspects of airport operations are analyzed?
The analysis covers various aspects of airport operations including operational concepts, traffic development, market analysis, competitive and cooperative strategies, and the economic impact of the surrounding region. The document also includes chapter summaries that provide more detail on each of these aspects.
What are the key chapters covered in the document?
The document includes an introduction, a market profile of the Rhine-Ruhr region, a detailed analysis of DUS and CGN airport operations and development, a discussion of competition and cooperation, and a conclusion offering an outlook and strategic recommendations.
What are the keywords associated with this analysis?
Key words include: Airport competition, airport cooperation, Dusseldorf Airport (DUS), Cologne/Bonn Airport (CGN), Rhine-Ruhr metropolitan region, aviation market, traffic development, strategic management, competitive advantage, catchment area, economic impact.
- 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
